Flexible remuneration and health insurance: business savings
Offer private health insurance through a health insurance plan. flexible remuneration has become a key strategy for many SMEs in Spain. Not only does it improve employee wellbeing, but it also allows companies to reduce wage costs and tax burdens efficiently. In this article, from PIB Group Iberia, We explain how this system works and why it can make a difference to your HR strategy.
What is flexible remuneration with health insurance?
The flexible remuneration with health insurance allows the employee to use part of his or her gross salary to cover the premium for private health insurance, without being taxed on that amount (up to €500 per year per insured person). This translates into a increase in take-home pay without the company having to raise gross pay.
In this model, insurance is offered as remuneration in kind exempt from personal income tax, This benefits both the employee and the company.
Benefits for the company and the HR department
Optimisation of wage costs
When applying flexible remuneration, the company does not increase the wage bill, The employee's perception of his or her salary is significantly improved. In addition, insurance premiums are deductible at 100 % for corporate income tax purposes., The taxation of the taxable income, as long as it is linked to the employment relationship and accounted for as a personnel expense, generating direct tax savings.
Incentive without budgetary impact
It is a benefit valued by talent without the need to raise salaries. This improves the compensation policy in a sustainable way. Compared to a gross wage increase, the fiscal cost of insurance is much more efficient.
Employee retention and loyalty
Employees who have health insurance have greater sense of protection, lower absenteeism and more commitment to the company. This translates into higher productivity and a better image as an employer.
How to implement a flexible remuneration plan with medical insurance
1. Needs assessment
Analyse the salary structure, team profile and the number of people interested in medical coverage.
2. Selecting the right policy
Having a specialised brokerage such as PIB Group Iberia is key to negotiating advantageous, customised group coverage and access to a leading insurance network.
3. Integration with payroll and taxation
Management must be aligned with current legislation (Personal Income Tax Law and labour regulations). PIB Group Iberia can help you design a model that complies with legal and fiscal requirements.
4. Communication to staff
Explaining the benefit and how it works is essential to ensure that it is well received and used. Digital management tools should also be provided to simplify contracting and monitoring.
Why trust PIB Group Iberia?
At PIB Group Iberia we work with multiple insurers and design tailor-made solutions for each company, We guarantee maximum efficiency in the management of social benefits. Our team advises you in all phases: from the negotiation of bonuses, to the communication to employees and subsequent follow-up.
In addition, we help you integrate this solution into a broader employee benefit plan, as part of a loyalty and tax optimisation strategy.
Conclusion: mutual benefit without extra costs
The flexible remuneration with health insurance is a smart way to improve emotional pay, attract talent and reduce tax costs. It is simple to implement and highly valued by employees. With the support of an expert team such as PIB Group Iberia, In this way, your company can realise its full potential without taking on unnecessary risks and administrative burdens.
At PIB Group Iberia we help you analyse your situation and find the cover that best suits your needs.
Speak to a specialist advisor and ask for here your free simulation without obligation.
