The social benefits are benefits or services that companies offer to their employees in addition to their salaries. They do not form part of the payroll, but are intended to improving workers' quality of life and well-being, helping them to reconcile their personal and professional lives.
The following are considered non-monetary benefits, They are not cumulative or exchangeable for cash, and are non-remunerative in nature. As such, they do not give rise to deductions or additional contributions.
Examples of social benefits are subsidised meals, public transport or health insurance. Their purpose is clear: increase team satisfaction and motivation, The company's commitment and image will be strengthened at the same time.
Although the two concepts are often confused, there are important differences between the two. social benefits and the flexible remuneration.
The flexible remuneration allows the employee to decide how much of their gross annual salary they wish to receive in cash and how much in products or services - such as food, transport or childcare. This allows you to optimise your take-home pay at no additional cost to the company, since certain services are exempt from personal income tax up to the legally permissible limit.
In Spain, tax legislation provides that the part of the salary that may be received in kind may not exceed 30 % of the gross annual salary. This limit applies only to flexible remuneration, as it is part of the employee's salary.
On the other hand, the social benefits are additional benefits that the company offers over and above salary. They are not deducted from the employee's pay and are therefore not subject to the 30 % limit. They involve an additional cost for the company, but they are 100 % deductible for corporate income tax purposes and contribute directly to the well-being and motivation of the team.
In addition, while flexible remuneration is individual and optional, social benefits are usually applied collectively, to the whole workforce or to certain groups or departments.
Despite the differences between social benefits and flexible remuneration, The services offered can be the same in both formulas. Goods, entitlements or services such as childcare, restaurant or transport services, which serve as a financial supplement to the worker and help him/her in his/her economy.
Let's take a closer look at some examples of social benefits.
Social benefits can take different forms depending on the needs of the team and the company's strategy. In Spain, among the social benefits most valued by employees we found:
Ticket Restaurant es, for years, one of the social benefits most highly valued by workers and one of the most common, as it is an important economic advantage for both companies and employees.
For companies, this social benefit is 100% deductible from corporate income tax. For employees, it is exempt from income tax up to €11 per working day The amount you save per year depends on your salary. Calculate your savings in our calculator.
The Transport Ticket encourages the use of public transport to pay for journeys between home and work. It is prepaid and can be used to purchase public transport tickets for passengers, including bus, tram, train and metro.
For companies, this service is 100% deductible from corporate income tax. For employees, it is exempt from personal income tax up to a maximum amount of €1,500 per employee per year.
The Childcare Ticket consists of the payment of childcare through the company, a social benefit which promotes the reconciliation of work and family life.
It can be offered by companies working parents with children in the first cycle of pre-school education, i.e. from 0 to 3 years of age.. It allows those workers to obtain a tax saving of up to three monthly payments per year on the payment of their child education centre.
For companies, this service is 100% deductible from Corporate Tax. For employees, Edenred Crèche is fully exempt from income tax.
The Edenred Gift Card is a flexible and customised solution for one-off campaigns, incentives or employee recognition.
It is nominative, rechargeable and can be adapted to different budgets, offering a modern and motivating way of rewarding performance.
An increasingly valued benefit, especially in environments where employee wellbeing is a priority.
It allows access to a faster and more personalised healthcare. For companies, the payment of health insurance is deductible and reinforces the perception of care towards the worker.
It is an excellent incentive for the professional growth and motivation of employees and also for companies, as it attracts talent. In our dedicated article you will find all the most valued employee benefits.
Social benefits also bring numerous individual advantages:
