18 March 2026

Tax and legal changes to Flexible Remuneration in 2026

La Flexible Compensation in Spain maintains in 2026 the same fiscal and legal bases as in the past years.The exemption limits for major benefits, the 30% framework for salary in kind or the general rules of the Workers' Statute have not changed substantially.

However, the policy and regulatory context is evolving. New European initiatives, such as the pay transparency directive, together with increased control by the administration and the growing digitisation of labour inspections, are introducing a new regulatory environment. important nuances in how companies should design, communicate and manage their Flexible Compensation plans.

For HR departments, this means that although the structure of the model remains the same, current plans should be reviewed to ensure that they comply with new transparency, control and governance requirements.

Legal basis for Flexible Remuneration in Spain

Flexible Remuneration consists of granting part of the salary in kind, always complying with the established legal basis. A salary in kind within a Flexible Remuneration scheme exists when:

La law provides for it
The collective bargaining agreement regulates it
The employment contract has provided for it
There is a contractual novation

According to the Convention 95 of the ILO, In the case of remuneration in kind, remuneration in kind must comply with three fundamental principles:

Mandatory partiality: It can only be partially paid in kind, preventing an employee from spending all of his or her remuneration on products or services under the scheme.
Appropriate and beneficial: It should be beneficial for both the worker and his or her family, including social components.
Fair value: The value of the product or service should reflect its fair market price, ensuring an equitable equivalent to the remuneration in money.

These principles ensure that Flexible Remuneration is fair, transparent and aligned with the social purpose of the plan.

Three key developments in Flexible Remuneration in 2026

In 2026, the management of Flexible Remuneration plans is impacted by three regulatory and social changes that companies need to be aware of to ensure compliance and optimise their benefits:

1. Minimum Interprofessional Wage (SMI)

The SMI remains a key benchmark for the planning of wage packages. In 2026, it is in the negotiation phase with the social partners, with a projected increase of 3.1%.

This increase has several implications for Flexible Remuneration plans:

Affects the maximum limit of salary that can be spent on benefits in kind, The basic salary must respect the SMI.
Forces a review of existing plans to ensure that wage increases do not compromise the legality of the plan.
It allows companies to adjust benefits to maintain a balance between cash and in-kind remuneration, ensuring that workers' minimum remuneration is not affected.

2. Transparency of Remuneration Directive

La European Union Directive 2023/970 on pay transparency introduces important changes in the management of pay plans and their internal communication:

Auditable plans: Flexible Remuneration documents should be easily auditable, detailing which groups have access to which products and why.
Accessible information for workers: If an employee requests information about their plan or how benefits are determined, the company must be able to provide it clearly and completely.
Equality and equity: The directive obliges to ensure that there is no discrimination in access to benefits, favouring fair treatment between workers in different departments or at different salary levels.

In practice, this means that Flexible Remuneration schemes must be transparent, documented and subject to The internal control system strengthens the confidence of employees and reduces legal risks.

3. Labour Inspection with Artificial Intelligence

La Labour Inspectorate is incorporating artificial intelligence (AI) to analyse Flexible Remuneration plans and detect possible irregularities more efficiently.

This has a number of consequences for companies:

Increased audit risk: Companies must ensure that plans comply with tax and labour regulations to avoid penalties.
Reputational impact: A detected non-compliance can affect both the internal and external image of the company.
Need for full documentation: T All access criteria, limits, updates and justifications should be fully documented, facilitating review and demonstrating compliance with the inspection.

Taken together, these three developments oblige companies to carefully plan your Flexible Remuneration plans, The EU's taxation of benefits in kind, ensuring that they are legal, transparent, auditable and equitable, while protecting workers' rights and optimising the taxation of benefits in kind.

Full legal compliance checklist for Flexible Remuneration in 2026

To ensure that a Flexible Remuneration plan is compliant in 2026, the following six key criteria are essential:

Defined legal basis: Any Flexible Remuneration scheme must be supported by a strong legal framework. This can be an existing law, an applicable collective agreement, an individual contract or even a previously agreed contract novation. Having such a basis ensures that flexible pay policies have legal validity, The Committee has also been able to identify and address the risks of contestation by workers or authorities.
30% limit respectedThe law establishes a maximum Flexible Remuneration which may be applied to the worker's annual compensation, generally the 30% of gross salary. It is essential that the plan does not exceed this limit in order to maintain its tax-beneficial nature and comply with labour regulations. Exceeding this percentage could result in tax adjustments or the loss of legal benefits.
Scheduled annual update: Flexible Remuneration schemes should be reviewed and updated. every year. This prevents the benefits from becoming a established law that employees can claim as fixed or permanent. An annual review allows the products offered to be adapted, consistency with current legislation to be maintained and the company's budget planning to be properly managed.
Written documentationAll Flexible Remuneration schemes must be formalised in writing. This includes the terms of the plan, the conditions of access, the products included and the applicable limits. The written documentation protects the company in case of complaints, inspections or audits, and serves as a clear reference for employees and human resources managers.
Documented access criteria: It is necessary to establish and register who is eligible for each benefit within the scheme. This can be based on professional category, seniority, location or any other legally permissible criteria. Having these criteria documented ensures transparency and reduces the risk of internal conflicts or accusations of unequal treatment.
Audited equalityThe company must ensure that all workers have the right to equal access to products and benefits of the plan, avoiding discriminations, such as the gender inequality. This requires periodic audits to verify that the distribution of the plan is equitable and that professionals understand how to access benefits. Audited equality reinforces confidence in the policy and protects the company against potential legal claims.