Flexible Benefits 2021
- April 22, 2021
- Reading time: 3 min
We are writing to remind you that, as of June 1, 2021, you must provide your employees with a package of welfare benefits and services valued at €200.00.
Attached are examples of “welfare” measures, such as benefits that can be provided to employees.
In this regard, please note that if contractual welfare benefits take the form of goods and services, the exemption threshold of €258.23 must be taken into account (pursuant to Article 51, paragraph 3 of the TUIR).
If the value of benefits (including company cars) provided to the employee during the year exceeds the above limit, the entire amount will be subject to social security and income tax.
1. Intended Audience
This applies to all employees who have completed their probationary period and who are on the payroll as of June 1, 2021, or who are hired on or before December 31, 2021, under the following types of contracts:
permanent contract (including apprenticeships);
a fixed-term contract under which they have accrued at least 3 months of service, even if not consecutive, between January 1 and December 31, 2021;
temporary agency workers. In this specific case, the client company may not provide welfare benefits directly to temporary agency workers but must instead notify the employment agency of the chosen benefit and the month in which it has decided to provide it. The cost of purchasing the benefit and subsequently providing it to the temporary agency worker must be borne by the agency.
Excluded are workers on unpaid or uncompensated leave during the
period from June 1 to December 31. In addition, all individuals who do not
are employees (e.g., contract workers, interns, self-employed individuals, etc.).
No adjustment of the €200 payment may be made for workers with
part-time contract.
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