Flexible compensation or salary in kind is a modality that more and more companies are incorporating as an alternative form of remuneration. One of the most common and widely applied services is the health insurance as part of the compensation in kind.
Flexible remuneration is the formula that allows a company's employees to decide how to receive their gross annual salary, allocating a portion to, for example, the contracting of services or products with certain tax and economic benefits.
Through flexible remuneration, therefore, the worker can reduce his income by the same amount as The company is responsible for paying for it in other ways.
This is a concept that companies are using more and more frequently to motivate employees plus, reduce their costs without having to lower salaries. Flexible compensation is therefore a kind of alternative remuneration which is increasingly in demand by workers who see the possibility of get more out of your payroll without the need to engage in difficult and complicated salary negotiations.
The flexible remuneration plan therefore consists of allocate a portion of gross salary to the purchase of tax-exempt services or products and which the worker himself will choose based on his needs. This means that all the services or products that can be included in flexible compensation are of free adhesion.
Among the different options of services and products that can be included in a flexible remuneration Health insurance is, without a doubt, the star service.
In the event that the company decides to offer private health insurance to its employees within its in-kind compensation plan, The company itself will be the policyholder and responsible for deducting the health insurance premiums from the employee's gross salary.
Health insurance for companies that are usually included in flexible compensation plans are insurances designed specifically so that both the company and the workers can benefit from their hiring.
Companies, as we mentioned earlier, thanks to flexible compensation can increase the net salary of its employees without any additional costs.
Furthermore, it has been proven that those companies that provide their employees with a flexible compensation plan have a most motivated squad and a stronger corporate image both internally and externally.
It's also important to highlight that including health insurance in flexible compensation is an excellent tool for attracting and retaining talent within the company.
Having private health insurance will allow employees to carry out a closer monitoring of their health status, which will help them prevent illnesses and diseases. This will eventually translate into a lower number of casualties (or even shorter drops), which will mean a reduction of absenteeism Inside the company.
For their part, employees also enjoy a series of advantages and benefits associated with having health insurance as part of their company's flexible compensation package.
First of all, it should be noted that employees, thanks to this, will be able to access private insurance with some advantageous conditions as the cost of hiring it will be lower When contracted jointly with other people, this will reduce the monthly premium compared to contracting insurance individually.
It is also worth noting that the incorporation of health insurance within flexible remuneration provides tax benefits to employees since the cost of such insurance, thanks to this method of remuneration, is exempt from paying personal income tax.
Any employee can benefit from the exemption, either total or partial, of their health insurance contributions in the annual income tax return, as long as you have hired it through your company as part of the flexible compensation plan. This is an essential requirement established by current legislation, and not everyone is aware of it.
We hope this article on incorporating health insurance into flexible compensation has been useful and has helped you resolve some of your questions.
At Sanitas Contrata, we offer you the best insurance policies with the most comprehensive and advantageous coverage and conditions. From Sanitas Contrata we give you the possibility of managing for free the health insurance for your employees through a flexible compensation plan. You'll also have the option to include other products and services and expand your coverage. at very competitive prices.
