In today's economy, employees are increasingly careful with their budgets, meaning that offering the right benefits is more important than ever.
Gross salary benefits allow companies to support employees' financial well-being and work-life balance by providing them with valuable products and services without the burden of increasing costs or complexity.
But what exactly are gross salary benefits, and how can you start offering them?
What are gross salary benefits?
Gross salary benefits allow employees to purchase specific products and services directly from their salary before taxes. This benefits employees by lowering their taxable income, significantly reducing the cost of everyday essentials compared to buying them privately.
In that way, employers can effectively boost employee satisfaction without extra budget allocations.
Use gross salary benefits to stay competitive
As Mikkel Bigandt Oehlenschläger, Business Development Director Nordics at Benifex, notes, gross salary benefits aren't just valuable—they're essential for staying competitive: “it's very important for the employer to offer this for the employees because other are doing it, so if you're not doing this today… it's a competitor's advantage.”
Providing these benefits not only attracts talented candidates but also helps retain your existing workforce by improving their everyday lives.
Implementing gross salary benefits positions your organization as forward-thinking and attentive to employee needs.
Stay compliant and avoid legal risks
Ensuring that gross salary benefits are managed correctly is crucial for companies. Speaking on the importance of how these benefits should be handled, Oehlenschläger explains:
“You have to be compliant about which benefits are you offering, because if you're offering the wrong ones, then government can issue fines. So, it's very important that you have a partner who can handle the administrative work as well as who has contracts with benefit suppliers.”
Partnering with a platform like Benifex ensures compliance, simplifies administration, and protects your organization from potential financial and legal risks.
Gross salary benefits in three easy steps
Setting up and managing gross salary benefits through Benifex involves a simple, three-step process:
- First, choose the benefits that align with your company’s needs.
- Next, our platform will handle the setup and administration to ensure everything runs smoothly.
- Once launched, employees can select their benefits and start saving immediately.
Easy-to-use benefits platforms ensure high employee engagement and minimize administrative efforts for HR teams. A simplified process means happier employees and a smoother experience for employers.
What employees should consider
It’s important to understand what happens when a salary benefit expires. For ongoing services such as public transportation passes or subscriptions, the benefit typically expires after 12 months unless the employee renews it through the portal.
If the employee has purchased a physical item, such as a mobile phone, through their gross salary, they may have the option to buy it out at the end of the agreement or if their employment terminates.
Benifex assists companies in managing this buyout process, alleviating the administrative burden on the employer.
Enhance your employer brand with gross salary benefits
Offering gross salary benefits sends a powerful message to current and potential employees: your company genuinely cares about their financial health and everyday needs.
handling all administrative work, supplier negotiations, and compliance, you can easily provide a more competitive total rewards package without additional costs or effort.
Ready to strengthen your employee offering? Contact Benifex today to learn more.
