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How much can Spaniards save in 2021 thanks to flexible compensation based on their average salary?

How much can Spaniards save in 2021 thanks to flexible compensation based on their average salary?

This 2021, the “ January slope ” is more complicated than other years for many, due to the economic situation that caused the COVID-19 pandemic. To cope with the new year and annual economic planning, businesses and employees need to research the best options for saving money and getting the most out of their paycheck. One of the options companies can offer to help workers save is flexible compensation, a policy that allows employees to allocate up to 30% of their gross annual salary to services exempt from income tax. . Indeed, this measure allows Spaniards to save between 1,900 and 5,800 euros per year, according to an analysis prepared by Sodexo taking into account the average salaries identified by the National Institute of Statistics (INE) in Spain.

Flexible remuneration allows employees to offer a series of tax-efficient services (food, public transport, crèche, training and health), as they are exempt from personal income tax, which means that the base taxable will be lower in the income statement. In this way, the employee can maximize their monthly salary, which takes on particular importance in a year like the one starting now. According to data from the latest Pulse, carried out by PeopleMatters in collaboration with Ceszinkin, 36% of companies in Spain do not plan to raise their employees’ salaries next year.

For their part, companies also benefit from this policy not only by increasing the purchasing power of the employee without increasing wage costs, but also by using it as a pretension to attract and retain talent. In fact, according to Sodexo data, 79% of employees attach great importance to flexible compensation. In addition, 75% of employees benefiting from this compensation model feel very satisfied with their salary, while among employees benefiting from a traditional salary package (without flexible compensation), only 35.5% are satisfied with their salary. .

With the aim of helping companies and employees face the year and overcome the “ January slope ”, Sodexo Benefits and Incentives analyzes the savings made with flexible compensation in different scenarios taking into account the data of the last average salary (2018) analyzed by the National Institute of Statistics (INE).

Average annual gross salary in Spain. The average annual gross salary in Spain in 2018 was 24,009.12 euros, 1.5% more than the previous year. Workers with this salary could allocate 7202 to services exempt from income tax via flexible pay services, such as restaurant vouchers (2,640 euros per year, 11 euros per day for 20 days), transport (1,500 per year, 125 euros per month), medical insurance (500 euros per year) and training (up to 2,562 euros per year). You will thus obtain an annual saving of 2,227 euros. Most frequent salary. The most frequent or modal salary was 18,468.93 euros, of which 5,540 could be allocated to services exempt from income tax, such as restaurant vouchers (2,640 euros per year, 11 euros per day for 20 days), the transport (1,500 per year, 125 euros per month), medical insurance (500 euros per year) and training (up to 900 euros per year). Thus obtaining an annual saving of 1,922 euros. Average annual salary of men. The average salary for men was 26,738.19 euros, of which 8,021 euros could be allocated to services exempt from income tax, such as restaurant vouchers (2,640 euros per year, 11 euros per day for 20 days), transport ( 1,500 per year, 125 euros per month), medical insurance (500 euros per year) and training (up to 3,381 euros per year). In this way, an annual saving of 2,095 euros would be obtained. Average annual salary of women. The average salary for women was 21,011.89 euros, of which 6,303 could be allocated to services exempt from income tax, such as restaurant vouchers (2,640 euros per year, 11 euros per day for 20 days), transportation (1,500 per year, 125 euros per month), medical insurance (500 euros per year) and training (up to 1,663 euros per year). Thus achieving an annual saving of 2443 euros. Average annual full-time and part-time salary. The average annual salary of full-time workers was 28,069.78 euros of which 8,421 euros could be allocated to services exempt from income tax, such as restaurant vouchers (2,640 euros per year, 11 euros per day for 20 days) , transport (1,500 per year, 125 euros per month), medical insurance (500 euros per year) and training (up to 3,781 euros per year). You will thus obtain an annual saving of 2,266 euros.
For their part, part-time workers currently earn an average salary of 11,170.99 euros. In their case, they already contribute to the minimum income tax, so they cannot benefit from a reduction in their contribution thanks to flexible remuneration. Average annual salary of executives and managers. The average annual salary of managers in Spain in 2018 was 54,341.32 euros, of which up to 16,302 euros could be allocated to tax-exempt services such as restaurant vouchers (2,640 euros per year, 11 euros per day for 20 days), transport (1,500 per year, 125 euros per month), medical insurance (500 euros per year) and training (up to 11,662 euros per year). This would mean a saving of 5,871 euros per year.

“Flexible compensation is an option to offer employees the opportunity to save money and plan their annual expenses for daily services such as transportation or food,” says Miriam Martín, Marketing Director of Sodexo Benefits and Incentives. “Given the current crisis scenario, in which it is convenient to look at salary performance, these compensation models make more sense than ever as formulas for meeting the needs of employees or for customizing compensation packages.”

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