WHAT IS REMUNERATION IN KIND? THE MOST SOUGHT-AFTER REMUNERATION IN KIND
Remuneration in kind is a great solution for companies that find it difficult to increase their employees’ salaries. They are different benefits based on services for employees, which means that employees can access them by paying a lower amount. In addition, you should know that many benefits in kind are exempt from personal income taxation.
This way of rewarding employees is important in retaining and attracting talent. If your employees or potential candidates are considering working for several companies, the ’employee care’ services they offer will be decisive in their choice. It is not the same for one company to simply offer you a high salary, as it is for another company to offer you a similar salary but take into account your personal situation (you have children so they offer childcare and flexible working hours). I guess you have already realised the importance of in-kind remuneration in 2021.
This is how the term “emotional pay” came into being; it is about those payments in kind that are valued by employees, i.e. they are emotionally pampered. This is the fundamental role of payment in kind, it serves as an additional motivation for the employee and increases his or her commitment to the company.
What needs to be taken into account when offering remuneration in kind?
There must be an employment relationship in force and the services received must be for the exclusive use of the employee. Despite the fact that this remuneration is not monetary, all goods or services that constitute the salary in kind must be quantified, so they must appear on the payroll, showing their associated monetary value.
It should not be forgotten that the salary in kind may not exceed 30% of the worker’s total earnings and that their remuneration must be higher than the SMI (Minimum Interprofessional Wage).
Examples of payment in kind
- Employee training
Employee training is one of the best forms of remuneration in kind that companies can offer. In addition to being a benefit in itself for employees, companies can also offer training at a reduced cost or even free of charge.
- Restaurant Ticket
Very useful for those who eat out frequently, as well as not being taxed in the IRPF, it allows employees to save money in many restaurants.
Family reconciliation is essential to keep your employees happy, offering childcare saves employees money and makes them feel supported by the company.
- Transport Ticket
Most employees have to commute from home to the office. Covering the mandatory movements they make is a way of reminding employees on a daily basis how important they are to the company.
- Flexible working hours
The main pillar of work-life balance, companies offering flexible working hours is now almost mandatory. When looking for a job, this is a determining factor, not only for those who have children and have to organise themselves, but also for those who do not have children and prefer to choose the timetable that suits them best.
- Health insurance
Offering a mutual insurance service is very beneficial for employees, often this service can also be applied to spouses, making it even more advantageous.
At Classgap for Enterprise we offer customised online training for companies, our mission is to meet the training objectives of both companies and employees, with total customisation. Are you looking for training for your employees? Contact us and we will advise you.