Dear Community,
Inflation and recession have probably been the most frequently used terms in the last few months. Everyone has witnessed it, and everyone has experienced the effects first-hand. Increasing costs of living and taxation affect how much is left of the net wage at the end of the month. However, SMEs in particular, which are trying to keep their costs as low as possible due to the unstable economic future, cannot always offer a salary increase.
You’re probably asking yourself what other alternatives are there. No need to look further, we got the perfect answer: “Net wage optimisation” 💡
What does “Net wage optimisation” mean?
With net wage optimisation, employees give up part of their gross wages, but in return receive additional benefits or allowances - which are, under certain conditions, tax-free. For the company itself, this form of benefit also means that there are no non-wage labour costs - which is advantageous for both parties, isn't it? 👍
What can I do as an employer?
🍝 Food subsidies
With this non-cash benefit, the employer can subsidise the employee for meals. Depending on the country, the amount that can be contributed varies. Feel free to share how this is regulated in your specific country.
🚘 Mobility subsidies
These make the trip to work a little more "comfortable". 😀
Anyone who uses the bus, train or car every day to get to work knows that this involves high costs. The travel allowance is a voluntary initiative by employers, which can be provided, for example, in the form of subsidies for a job ticket or a company bicycle.
Do you have thoughts that you would like to share regarding this topic?
✍️ Feel free to post them in the comments! I am also interested in whether and to what extent your company supports the optimisation of net wages.
Best,
Melissa
