What are Social Benefits?
Social benefits are a way of Non-monetary reward by which the company offers its employees goods or services as a supplement to their salary, bearing the full cost. The employee does not have anything deducted from their wages – they receive the benefit as an extra on top of their salary.
The most common services include Restaurant tickets, Edenred Nursery and Edenred Mobility. However, Social Benefits can also include other services such as health insurance, rental payments for relocated employees, or pension plans.
From a tax perspective, the amounts allocated to BS are 100% deductible for corporate income tax purposes for the company and, depending on the product, they may be exempt from personal income tax for the employee within the limits established by Law 35/2006.
Unlike flexible remuneration, there is no 30% cap on salary for employee benefits – the company can offer whatever amount it deems appropriate.
Advantages of Social Benefits
What is the difference between Social Benefits and Flexible Remuneration?
The key difference is in Who bears the cost, and does it affect the employee's salary?:
- Social Benefit The company covers 100% of the cost. The employee receives the benefit as a bonus on top of their salary, with nothing deducted from their pay.
- Flexible Compensation: The employee allocates part of their gross salary to pay for these services, benefiting from income tax exemption. The company doesn't pay more, but the employee optimises their net salary.
- Hybrid Model: Combine both formulas. The company subsidises a portion and the employee covers the rest via a repayment facility (RF). This is the most common option for products such as health insurance.
What products can be included in the Social Benefits?
Ticket Restaurant
Edenred Mobility
Edenred Nursery
More benefits that can help you
Edenred Gift Card
It is a personalised card that team members can use in a wide selection of online shops and platforms.
Edenred Meal Allowance
It can be used to cover the cost of meals during business trips and can be used in a wide network of restaurants in a convenient way.
Health insurance with Edenred Flex
Having insurance comes first, which is why they have an income tax exemption of €500 per year per policyholder.
How do you launch a Social Benefits plan with Edenred?
From the moment you contact us to when your team starts enjoying its benefits, the process is simple and guided every step of the way:
- We'll define your plan with you: We analyse your team's profile and recommend the services that will have the most impact on your team, taking into account your budget and sector.
- We are configuring the products: We activate your chosen services and prepare the cards or cheques for your team. No unnecessary paperwork.
- We're communicating the plan to your employees: We provide you with internal communication materials so the team understands and values the benefit from day one.
- Continuous management from Edenred Flex: Highs, lows and recharges from a single platform, with automatic reports and specialised support at all times.
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Frequently Asked Questions on Social Benefits
Can teams choose between different Social Benefits?
Yes. Each company can offer a catalogue of social benefits and allow individuals to select those that best suit their needs, such as food, childcare, transport or training.
Are social benefits exempt from Income Tax?
Social Benefits are remuneration in kind and, as such, may be exempt from Personal Income Tax up to the limits established by Law 35/2006Restaurant vouchers up to €11 per working day, transport up to €1,500 per year, childcare with no spending limit, health insurance up to €500 per beneficiary per year. If the amount of the benefit in kind exceeds these limits, the excess will be taxed as employment income on the employee's payslip.
How do Social Benefits impact on team motivation and retention?
Social Benefits schemes have a direct and measurable impact on team engagement: according to industry studies, companies with active benefit schemes report up to 251% more engagement with the company, a lower absenteeism rate and greater staff stability. From the employee's perspective, perceiving that the company invests in their well-being in a concrete way – not just with words – is one of the most determining factors for long-term loyalty.
How to implement a Social Benefits plan in a company?
Launching a BS plan with Edenred follows a simple four-step process: (1) diagnosis from the team's needs and the available budget; (2) Service selection according to the staff profile; (3) Activation of products and delivery of cards or cheques; (4) Continuous management from the Edenred Flex platform, with automated reports and specialised support.
What are the costs involved in implementing a Social Benefit programme in Spain?
Under an employee benefits scheme, the company bears the full cost of the services it provides. However, this expenditure is 100% deductible for corporation tax purposes, which reduces its actual impact on the profit and loss account. The specific cost varies depending on the services chosen, the number of employees and the amount allocated to each benefit. To obtain an estimate tailored to the size and profile of your company, contact our team.
Which social benefits are most valued by professionals in Spain?
Among the most in demand are:
They bring tangible value to the employee's day-to-day life and promote work-life balance.
Are Social Benefits compatible with Flexible Remuneration?
Yes, they are fully compatible. A company can simultaneously offer Social Benefits (covering the cost of certain services) and Flexible Compensation (allowing employees to allocate part of their gross salary to other services with tax advantages). It is also possible Hybrid Model: the company subsidises part of the amount as BS, and the employee covers the rest via RF. There is no legal limit on the total amount a company can offer as BS – the 30% limit on gross salary applies exclusively to Flexible Remuneration.
Are social benefits mandatory or voluntary?
It depends. Some Social Benefits may be mandatory by collective agreement – for example, accident insurance or meal vouchers in certain sectors. In this case, the company is obliged to offer them. Social Benefits VolunteerThese, on the other hand, are the ones that the company decides to offer above and beyond what is required by the collective agreement, as part of its employer branding strategy. These are the ones that have the greatest impact on team motivation, precisely because employees perceive them as a genuine gesture from the company. Edenred can help you identify which benefits are mandatory in your sector.
Do benefits contribute to Social Security?
Yes, social benefits are part of an employee's salary and, therefore, pay social security contributions. This differentiates them from Flexible Remuneration, where the contribution base does not change. In practice, the impact on contributions depends on the amount of the Benefit Scheme (BS) and the employee's contract type. For the most common BS within the income tax exemption limits, the increase in the contribution base is moderate and is usually offset by the tax advantages in corporate tax (IS).
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