{"id":14198,"date":"2022-03-22T13:30:14","date_gmt":"2022-03-22T12:30:14","guid":{"rendered":"https:\/\/pibgroupiberia.com\/?p=43520"},"modified":"2025-05-23T10:09:46","modified_gmt":"2025-05-23T08:09:46","slug":"flexible-remuneration-medical-insurance","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/blog\/retribucion-flexible-seguro-medico\/","title":{"rendered":"Flexible remuneration and its relation to health insurance"},"content":{"rendered":"<p>Health insurance has grown in our country to 13 million insured people, coinciding with the emergence of the COVID and the collapse of the health system that it has brought with it.<\/p>\n<blockquote><p>In this context, health insurance is gaining a lot of prominence as an important <a href=\"https:\/\/pibgroupiberia.com\/en\/companies\/employee-benefits\/\">flexible remuneration<\/a> The company benefits from this, as it gives employees access to this service at advantageous conditions. It is also positive for the company, as it increases the take-home pay of its staff.<\/p><\/blockquote>\n<p>In this article we focus on health insurance as flexible remuneration, to see how it is reflected in the payroll and in income tax. We will also see what it means for the company to implement this type of salary in kind.<\/p>\n<h2><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/pibgroupiberia.com\/wp-content\/uploads\/2022\/03\/retribucion-flexible-seguro-medico.png\" alt=\"\" width=\"900\" height=\"400\" \/>What is flexible remuneration and how is health insurance applied?<\/h2>\n<p>Flexible remuneration, also known as salary in kind, is a part of the salary that the company offers to enjoy in the form of goods or services to its employees. <strong>May not exceed 30 % of the gross amount received by the employee.<\/strong>, and can range from transport, to childcare, as well as restaurant checks.<\/p>\n<p>As we explain in this <a href=\"https:\/\/pibgroupiberia.com\/en\/blog\/what-is-flexible-remuneration-and-how-does-it-work\/\" target=\"_blank\" rel=\"noopener\">article on flexible remuneration<\/a>, This concept refers to the offer of a good or service by the company, normally at a lower price than the market price, which is deducted from the salary. This salary in kind, as we said, can be in the form of meal vouchers, car rental, training and also insurance, specifically, <a href=\"https:\/\/pibgroupiberia.com\/en\/individuals\/insurance-solutions-for-individuals\/risk-life-insurance\/\">life insurance<\/a> y <a href=\"https:\/\/pibgroupiberia.com\/en\/insurance-for-individuals\/health-insurance-3\/\">health insurance<\/a>.<\/p>\n<blockquote><p>Among the <a href=\"https:\/\/pibgroupiberia.com\/en\/blog\/collective-health-insurance-as-a-social-benefit-in-the-company\/\" target=\"_blank\" rel=\"noopener\">benefits of these corporate health insurances<\/a> The most important ones are the <a href=\"https:\/\/pibgroupiberia.com\/en\/blog\/tax-deductions-for-taking-out-health-insurance-for-your-company\/\" target=\"_blank\" rel=\"noopener\">tax deductions<\/a>, 500 per year is exempt from personal income tax (IRPF).<\/p><\/blockquote>\n<h2>Advantages of introducing health insurance as a flexible remuneration scheme<\/h2>\n<p>The formula of company health insurance as part of the salary in kind has been very popular in our country for a few years now, as it has been used in many countries. <strong>which provides a tax and employee protection advantage, at little extra cost to the company.<\/strong>. Moreover, it adds value and helps to build employee loyalty.<\/p>\n<h3>Advantages for employees<\/h3>\n<ul>\n<li><strong>Tax benefit:<\/strong> health insurance is exempt from personal income tax up to \u20ac500, which means that you will save up to a considerable amount of tax. Not only that, the employee, spouse and children can benefit (\u20ac500 each).<\/li>\n<li><strong><a href=\"https:\/\/pibgroupiberia.com\/en\/blog\/types-of-group-insurance\/\">Group insurance<\/a>:<\/strong> The company that takes out health insurance for several persons within special flexible remuneration plans often obtains more advantageous prices by taking out several policies. As a result, it is often offered at a cheaper price than what an individual customer gets.<\/li>\n<li><strong>Protection:<\/strong> Beyond the savings of health insurance, having the extra protection of health insurance for the employee and, if desired, for his or her family, is good for his or her health and, by extension, his or her happiness.<\/li>\n<li><strong>Freedom to opt in or opt out:<\/strong> The employer cannot force the employee to receive part of the salary in this form, so it is important to note that employees who do not wish to do so can waive this salary in kind.<\/li>\n<\/ul>\n<h3>Benefits for companies<\/h3>\n<ul>\n<li><strong>Tax benefit:<\/strong> Premiums paid for health insurance for your employees can be deducted for corporate income tax purposes.<\/li>\n<li><strong>Increase in take-home pay:<\/strong> With these savings, the company can increase the take-home pay of its employees at no cost to itself. Increasing the economic wage in the same proportion would have a significant cost overrun compared to this alternative.<\/li>\n<\/ul>\n<blockquote><p>Offering health insurance as part of a flexible remuneration plan does not entail any direct extra financial cost for the company.<\/p><\/blockquote>\n<ul>\n<li><strong>Talent retention: <\/strong>In many cases, it is not only the salary that leads employees to stay with the company, but also many other factors such as work-life balance, the working environment, health insurance, etc., which we call <strong>\u201cemotional wage\u201d.\u201d<\/strong>.<\/li>\n<li><strong>Employee welfare:<\/strong> Benefiting from the advantages of health insurance has a direct effect on the health of workers, who can better control their pathologies. In the long run, this can translate into improved productivity, competitiveness and reduced absenteeism due to sick leave.<\/li>\n<\/ul>\n<blockquote><p>In short, the rates are already much cheaper, in fact, you can get discounts of up to 40% for the same policy.<\/p><\/blockquote>\n<p>Would you like us to inform you on how to implement it in your company? At PIB Group Iberia we have been offering this type of complementary social welfare plans for workers for decades. Contact us so that we can help you launch this flexible remuneration plan.<\/p>\n<p><a href=\"#\"><img decoding=\"async\" src=\"https:\/\/pibgroupiberia.com\/wp-content\/uploads\/2016\/05\/BANNER-C.gif\" alt=\"\" width=\"500\" height=\"100\" \/><\/a><\/p>\n<h2>How is health insurance reflected in the payroll?<\/h2>\n<p>When the health insurance is part of a flexible remuneration or salary in kind, it has to be reflected in the pay slip. One of the main advantages is that the first 500 euros derived from this health insurance will be exempt from personal income tax for the employee, spouse and children under 25 years of age. The only exception in Spain is the Basque Country, where this insurance is not exempt from personal income tax.<\/p>\n<h2>How is health insurance taxed if it is a salary in kind?<\/h2>\n<p>The payment in kind of health insurance for a worker, spouse and children is exempt from personal income tax up to 500 euros per year per beneficiary and 1,500 euros per beneficiary with a disability, provided that the policy forms part of their salary in kind. However, the part of the premium that exceeds this amount will be subject to tax withholding.<\/p>\n<h2>Flexible remuneration and health insurance: Does it include family members?<\/h2>\n<p>Yes, the employee can take advantage of the possibility to reduce his or her income and have the employer pay the health insurance for the employee and for the members of his or her family unit who are included.<\/p>\n<h2>Example of flexible remuneration with health insurance<\/h2>\n<p>A female employee earns \u20ac30,000 per year and pays income tax with a 30% (in the bracket from \u20ac20,000). She decides to take advantage of her company's flexible remuneration plan with the payment of health insurance in kind. The cost of the policy for herself, her spouse and two children is \u20ac1,600 per year and it is the company that pays this cost. As this amount does not exceed 500 euros per beneficiary, it would be exempt from income tax. The salary benefit that you would obtain is that this amount of salary in kind would be exempt from income tax; to give you an idea, a 30% of 1,600 euros is 480 euros. And, of course, the initial cost of the insurance is cheaper than it would be on an individual basis.<\/p>\n<blockquote><p>Do you want us to help you implement your flexible remuneration plan with company health insurance? Trust the specialised team at PIB Group Iberia. As a brokerage, we can offer you different insurance options and find together the one that best suits the needs of your team.<\/p><\/blockquote>\n<p><a href=\"#\"><img decoding=\"async\" src=\"https:\/\/pibgroupiberia.com\/wp-content\/uploads\/2016\/05\/BANNER-A.gif\" alt=\"Contact with us\" width=\"500\" height=\"100\" \/><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>What is salary in kind? How does flexible remuneration apply to health insurance? We answer your questions about payroll and personal income tax.<\/p>","protected":false},"author":14,"featured_media":14168,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":4.6,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"CreativeWorkSeries","footnotes":""},"categories":[152],"tags":[194,186],"class_list":["post-14198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-profesionales","tag-retribucion-flexible","tag-salud-empresas"],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/14198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/comments?post=14198"}],"version-history":[{"count":0,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/14198\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/14168"}],"wp:attachment":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=14198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=14198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=14198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}