Entrepreneur's Guide to Employee Benefits

Why and how can an entrepreneur make use of employee benefits?

Employee benefits are among the most effective ways to enhance employee wellbeing, engagement, and job satisfaction. They can also help a company attract new talent and stand out from competitors. But which benefits are worth offering, and how do they impact the financial health of a small or medium-sized enterprise (SME)? 

Entrepreneurs can take advantage of employee benefits, but their availability depends on the company form. An entrepreneur can also benefit from them personally if they operate through a limited liability company (osakeyhtiö) and hold an employee position within it. However, it is not necessary to pay themselves a salary—benefits can still be offered on the same terms as to other employees.

Partners in limited partnerships (kommandiittiyhtiö) and general partnerships (avoin yhtiö) may also receive employee benefits in a similar manner to limited liability company entrepreneurs. However, sole proprietors—such as those running a business, practicing a profession, or managing a farm—are not eligible for tax-exempt employee benefits as defined in Section 69 of the Finnish Income Tax Act. Accordingly, they also cannot deduct the related expenses in taxation.

Sole proprietors (toiminimiyrittäjät) can only offer employee benefits to their employees—not to themselves. While not all employee benefits available to limited liability companies are accessible to sole proprietors, many expenses that support wellbeing and work ability can still be tax-deductible for the business. The key requirement is that these expenses must have a clear connection to the business operations in order to qualify for tax deductions.

Why are employee benefits important?

Employee wellbeing and motivation are directly linked to a company's productivity, and benefits can:

• Enhance job satisfaction – A healthy employee is typically more motivated and committed. 
• Improve work performance – Satisfied employees are more productive and resilient.
• Attract new talent – Competitive benefits can be a decisive factor in recruitment.
• Reduce sick leave – Services like Edenred Virike or Edenred Wellbeing can help prevent illness and promote proactive care.

The most common employee benefits for entrepreuners

1. Sports and culture benefit

The most popular option is Edenred Virike, an exercise and culture benefit that allows employees to pay for sports and cultural activities. The benefit must be offered collectively to all employees.

2. Occupational health care

High-quality occupational healthcare is one of the most valued employee benefits. While providing basic occupational health services is legally required, many companies go beyond this by offering extended services such as physiotherapy or mental health support. Edenred’s Wellbeing Benefit offers employers a simple, tax-exempt way to support employee health up to €3,000 per year provided the benefit is included in the company’s occupational healthcare plan.

One of the most popular employment benefits is also Edenred Massage. This tax-free massage benefit helps employees relax and recover while also preventing sick leave and stress.

 
3. Lunch benefit

Edenred Lounari, or the lunch benefit, can be offered as a digital solution either in addition to salary or as part of it. It’s tax-advantageous and also helps improve employee energy and wellbeing during the workday. With our lunch benefit calculator, it's easy to estimate how much you can save by using this benefit.

 
4. Company bike benefit

In recent years, the company bicycle benefit has grown in popularity, offering an affordable and tax-efficient way for employees to acquire a high-quality bicycle. It promotes employee wellbeing and supports sustainable commuting.

Edenred Fillari is a tax-free bicycle benefit that encourages employees to cycle both to work and during their free time. Thanks to the tax exemption, employees can save up to 35% on the cost of a bike! The benefit is provided in collaboration with our partner, Vapaus, giving users access to the full range of bicycles—from traditional models to e-bikes—as well as various cycling accessories.

 
5. Leisure-time and other insurance benefits

Companies can offer their employees leisure-time accident insurance or travel insurance, which enhance personal safety and can serve as valuable employee benefits.

 
6. Remote and flexible work benefits

Remote work opportunities and flexible working hours are, for many employees, more valuable than monetary compensation. Employers can support remote work by providing ergonomic equipment for home offices, such as adjustable chairs, desks, or external monitors.

 
7. Training and developments opportunities

Developing employee skills is an investment in the company’s future. Businesses can support their workforce through training sessions, online courses, or even mentoring programs—each contributing to long-term competence and engagement.

When offering any benefit, it's essential to consult the latest guidelines from the Finnish Tax Administration to ensure the benefits are used optimally and offered fairly to all employees.

 
How to choose the right benefits for your business?

Every company should carefully consider which benefits best support both employee wellbeing and business goals. A great starting point is simply asking employees what they value most. It’s also important to calculate the cost of each benefit and weigh it against the potential returns.

Employee benefits aren’t just expenses—they’re investments that can enhance your company’s competitiveness and employee satisfaction. A well-designed benefits package can make your company a desirable place to work and help retain valuable talent in the long run.

Need help designing the ideal set of benefits? Reach out, and let’s build a tailored package that suits your business perfectly!