Therefore, we are dealing with a type of non-monetary salary that offers employees certain essential basic services. In addition, the company assumes the entire cost of these salary supplements
They are normally related to those services that are necessary to carry out daily work. For example, the nursery if they have children or the cost of the diets if they eat in the company itself. In this way, the worker obtains a social benefit.
Characteristics of social benefits
We are going to see some of the most relevant characteristics of social benefits.
- In the first place, as we have mentioned, the cost is assumed by the company. In other words, it is free for the worker or the beneficiary.
- It is remuneration in kind that does not affect salary. Thus, the worker will charge the same enjoyment or not of it.
- In many countries there is a limit on remuneration expressed as a percentage. For example, in Spain, the cost must be, at most, 30% of the salary.
- It is usually exempt from income tax (IRPF) and is deductible from corporate tax (IS) or company tax. However, it is usually included in the social security contribution bases for sick leave, unemployment or retirement.
Advantages of social benefits
Now we will focus on the advantages for the company of implementing a policy of social benefits.
- First of all, the motivation. Perhaps this is the most relevant, since the worker sees this type of remuneration in kind as something that benefits him. It really amounts to a raise in salary.
- Related to the above, let us remember that they are essential and necessary services for the employee, such as childcare or food.
- Companies can offer these types of advantages when selecting staff. This way they make sure to attract talent. A clear example is Google.
- Some of these services, such as nursery services, allow a better work-life balance for those who have children.
- Finally, we can mention the tax advantages for the company that carries them out, since it will be able to deduct the expense.
Examples of social benefits
To finish, let’s look at some examples of this type of salary in kind.
- One that we have already discussed is the nursery for employees with children. In this way, the service is offered within the company itself.
- Checks or cards for diets and transportation. In this case, the employee has a weekly or monthly budget to eat in participating establishments or to use certain means of transport.
- Bonus training. When the company pays social security contributions there is a training section. Thus, the employer can dedicate a certain budget to subsidized training courses.
- gyms and entertainment venues. The company offers you places to relax or where you can exercise or go shopping.
- Pension plans, bank loans or other financial products. In this case, the social benefits are related to the worker’s savings.