we live relatively difficult times, both for workers and for companiesand welfare benefits can make a huge difference in the end. Now, what are we talking about when we refer to them? How are they managed? What are the tax implications for workers? Do they really make a big difference? There are many questions surrounding this formula that continue to gain popularity, so it is best to answer them.

Addresses of companies and, above all, directly of managers and human resources teams, they are experiencing a very complex economic scenario in all its harshness, in which prices have been rising for more than a year and subsequently workers are demanding wage increases in order not to lose purchasing power, which is an understandable position. However, in the vast majority of cases, the increase in prices does not translate into an improvement in the company’s income, so traditional wage increases are not possible. That’s where social benefits come into play. As? Well, we’ll explain it to you in detail in this completely free eBook from Cobee.

And what are Social Benefits, which we can also call Flexible Remuneration? We start from the fact that the worker is entitled to a gross annual salary, a salary that is of course subject to certain fees, which are reflected in the net after application. And of course, once the worker receives said net monthly paycheck, they logically use that money to make a series of payments for products and services.

However, companies have the option to offer their employees some of these products and services, whose costs are deducted from the worker’s salary. And what is the advantage of this model compared to the fact that these payments are made by the employee himself after receiving the salary? Well, it actually has two advantages:

• It’s the first one the cost of such products and services is deducted from gross wagesso subsequent deductions will be lower (because they are applied to a lower value) as the worker’s gross pay goes from No. Be N-price of a product or servicebecause the cost of welfare benefits is not included in the calculation of withholding taxes.
• The second is that when properly managed companies can get better prices than those offered to end users. The worker thus saves part of the price and, in addition, his tax rate is reduced proportionally by the value of social benefits.

Implementing a benefits plan can provide huge benefits to workers, making it easier for companies to retain talent. And this is something so valued that, as we can read in IV Cobee Employee Benefits Trends Report 2023, Flexible compensation or social benefitshave become a fundamental factor for 9 out of 10 Spaniards looking for a new job.

However, the implementation of a social benefits program must be sensitive to multiple factors, such as the profile or profiles of workers, the current market situation, etc. However, with the right help, this process can be quick and efficient, making our profile as an employer much more attractive. So if you are interested in implementing flexible compensation in your company, wait no more and download this one e-book 100% free by Cobee to answer all your questions.