In an increasingly competitive work environment, employee wellbeing has become a strategic priority for companies. Caring for people not only improves their satisfaction and quality of life, but also boosts productivity, engagement and talent retention.
In this context, two concepts stand out for their relevance: the social benefits and the flexible compensation. Although both are part of the non-wage compensation package, there are important differences between them. Understanding these differences allows companies to design more efficient, fair and motivating compensation programmes.
Salary is no longer the only factor determining job satisfaction. Today, employees particularly value well-being policies, work-life balance, and opportunities for personal growth.
Employee benefits and flexible remuneration are key tools for this transformation. They allow companies to tangibly look after their team, while optimising costs and taking advantage of tax benefits. Ultimately, are pillars of an emotional wage strategy that reinforces the corporate culture.
If you want to go deeper into the impact of well-being at work, we recommend you to read Employee benefits: Which are valued most?
Social benefitss are benefits or services that the company offers to its employees. above the basic salary, at no cost to them. Its aim is to improving general well-being of the worker and strengthen their bond with the organisation.
These benefits can range from basic services to more specialised solutions, depending on the size and needs of the company.
Among the most common are:
Beyond improving employee satisfaction, these benefits are 100% deductible for corporate income tax purposes, which makes them fiscally advantageous for companies too.
For a more detailed explanation of its advantages, types, and practical examples, visit our article Employee Social Benefits: what they are, types, and advantages for your company
La Flexible remuneration is a remuneration model that allows each employee to to choose how to perceive a part of your salary, by spending up to 30 % of their gross annual salary on products or services exempt from personal income tax.
This means that it can save taxes and enjoy greater purchasing power, without the company having to increase its wage bill.
For example, a worker might decide to allocate part of their salary to food or transport vouchers, and another part to training, depending on their personal needs.
If you wish to know all the details about its operation, legal limits, and tax benefits, consult our complete guide: Flexible Remuneration: A Comprehensive Guide
The current legislation stipulates that the total amount allocated to flexible remuneration may not exceed 30 % of the gross annual salary. If that limit is exceeded, the excess is subject to the usual tax withholding.
Although both concepts aim to improve employee welfare and increase purchasing power, there are fundamental differences between them:
| Flexible remuneration | Social Benefits | |
| Relationship with salary | Within the basic salary | Above the basic salary |
| Costs | Taken on by the workers | Undertaken by the company |
| Flexibility | Each employee chooses how much of his or her salary to spend on each of the services. | Standard for all employees or groups of employees |
| Employee tax benefits | Salary money used for flexible remuneration services is exempt from income tax. They are subject to National Insurance contributions. | They are exempt from personal income tax and pay social security contributions. |
| Limits | Up to 30% of annual gross salary | Up to 30% of annual gross salary |
There is Various services that can be offered through flexible remuneration or employee benefits, The new solutions, enabling companies to provide a wide range of benefits to their employees. Among the main solutions are:
Yes, it's possible and, in fact, more and more companies are adopting a mixed model which combines both flexible remuneration and social benefits as a subsidy.
This approach allows companies to offer a solid foundation of standard benefits to all employees while, provides additional options that employees can choose according to their individual needs. If you want to discover how the Mixed Model works Read our article!
To find the most suitable and effective solution for your company, we invite you to contact us. With our experience and range of services, we can help you design a employee benefit plan that maximises the well-being of your employees and improves the competitiveness of your business.
The choice between social benefits, flexible remuneration, or a mixed model will depend on several factors: the size of the company, the employee profile, human resources objectives, and fiscal strategy.
A good starting point is to analyse:
Having an expert partner for benefit solutions, such as Edenred, facilitates the implementation and management of the plan, ensuring that both the company and employees obtain maximum value.
Understanding the difference between social benefits and flexible remuneration is key to designing a Modern and effective remuneration policy.
Both systems are complementary: social benefits strengthen collective well-being, while flexible remuneration enhances personalisation and individual savings.
Companies that combine both formulas achieve more motivated, committed teams that are loyal to their corporate culture.
Would you like to implement a bespoke benefits plan? Contact with Edenred and discover how we can help you create a remuneration strategy that promotes well-being, productivity, and talent retention.
