Hello employer, learn how you can offer tax-free employee benefits using Edenred's targeted payment instruments.
A fringe benefit, i.e. a benefit paid on top of salary, is similar to a salary increase. This way, the employer can save up to 25%.
Example: If an employee is given a 100 € salary increase in cash, the employer must pay employer contributions on the entire amount. In this case, the actual costs of the salary increase rise.
If, instead, the salary increase is offered as a 100 € lunch benefit, the taxable portion is 75%, meaning employer contributions are only paid on 75 €. The remaining 25 € is deducted as such in taxation, and the taxable portion (75 €) is considered an expense comparable to salary costs.
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The lunch deduction is charged to the employee's salary. 25% of the lunch benefit is tax-deductible, meaning the employee pays at least 75%.
Example: The employer offers the employee a lunch benefit for 21 working days in a month. The employee pays for the benefit 21 x (0.75 x 13,70 €*) = 215,78 €, which is deducted from their salary. The employer pays only 25% for the benefit, i.e., 21 x (0.25 x 13,70 €*) = 71,93 €, and can deduct this in taxation.
*Maximum value in 2025
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The sports and culture benefit is a wellness-promoting alternative to a salary increase, for which a tax-free maximum amount has been defined. It is a staff benefit that is tax-free for the employee and tax-deductible for the employer.
The benefit must be offered collectively to the staff. However, the employer can determine how much tax-free benefit is provided within the maximum limit and whether it includes a deductible portion.
The massage benefit is a staff benefit offered in the same way as a salary increase, which must be distributed collectively, in a customary and reasonable manner. The benefit is tax-free for the employee and tax-deductible for the employer. Check the tax-free maximum amount for the massage benefit.
The employer can determine how much tax-free benefit is provided within the maximum limit and whether it includes a deductible portion.
The tax exemption requires that the employer has pre-defined the service providers within the Edenred network where the targeted payment methods for the massage benefit can be used. Edenred facilitates this through a separate tool.
The commuting benefit is a fringe benefit offered in the same way as a salary increase, for which the Tax Administration has set a tax-free maximum amount (including the amount of the bicycle benefit). The benefit is tax-free for the employee and tax-deductible for the employer.
The benefit does not need to be offered collectively to the staff, and the employer can determine how much tax-free benefit is provided within the maximum limit.
The bike benefit is a fringe benefit offered in the same way as a salary increase, for which the Tax Administration has set a tax-free maximum amount that is included in the commuting benefit. The benefit is tax-free for the employee and tax-deductible for the employer.
The benefit does not need to be offered collectively to the staff, and the employer can determine how much tax-free benefit is provided within the maximum limit.
A wellbeing benefit is a staff benefit that, like a salary increase, must be provided within a tax-free maximum amount defined by the Tax Administration. The benefit must be distributed collectively, and it should be customary and reasonable. The benefit is tax-free for the employee and tax-deductible for the employer.
NOTE! The tax exemption for the wellbeing benefit requires that the benefit is organized by the employer and that it is stipulated in an agreement related to occupational health services, guidelines, or another similar document. Additionally, the tax exemption requires that the employer has pre-defined the service providers within the Edenred network where the targeted payment methods for the wellbeing benefit can be used. Edenred facilitates this through a separate tool.
Edenred's product selection is complemented by Delicard® gift cards, which enable tax-free rewarding of employees.
Read our compiled information package based on the Tax Administration's guidelines regarding employee gifts. You can also download a comprehensive guide on rewarding!
Fringe benefits, staff benefits, targeted payment instruments... who wouldn't want to learn more about them?
We have compiled a comprehensive, easy-to-understand, and free guide to clarify employee benefits and their taxation practices.
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