Evelyne van DyckEvelyne van Dyck Plantijn University AntwerpenPlantijn University Antwerpen BelgiumBelgium Brigitte KBrigitte Köönig HfWU Nürtingen - GeislingenHfWU Nürtingen - Geislingen GermanyGermany Michele BazziMichele Bazzi University of BolognaUniversity of Bologna ItalyItaly Cecilia OrlandiniCecilia Orlandini University of FlorenceUniversity of Florence ItalyItaly Lina PileicikaiteLina Pileicikaite Kaunas CollegeKaunas College LithuaniaLithuania Asta BenetyteAsta Benetyte Mykolas Romeris UniversityMykolas Romeris University LithuaniaLithuania Sylvana JanssenSylvana Janssen INholland UniversityINholland University The NetherlandsThe Netherlands Anna PuigdecanetAnna Puigdecanet University of GironaUniversity of Girona SpainSpain

Coaches: Coaches: Horst Blumenstock, Luc BroesHorst Blumenstock, Luc Broes

FLEXIBILITY OF THE FRINGE BENEFITS

1.THE “IDEA” OF WAGE

2.FRINGE BENEFITS

3.CONSEQUENCES

4.RECOMMENDATIONS

1. THE ”IDEA”1. THE ”IDEA”

OFOF

WAGEWAGE

The The “idea” of “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

"IDEA" OF WAGE

• Definition - Employment benefit

- Family wage

• Contract

• Law situation

The The “idea” of “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

WAGE CALCULATION

• Taxes

• Social contributions

• Payment - in money

- in kind

• Type of wage - per unit of time

- per unit of work

WHAT WE HAVE WHAT WE HAVE LEARNED…LEARNED…

……wage is obligatory in the wage is obligatory in the contract contract

……the wage calculation is in the wage calculation is in most countries similarmost countries similar

……wage is the basis to talk about wage is the basis to talk about fringe benefitsfringe benefits

2. FRINGE 2. FRINGE BENEFITSBENEFITS

The “idea” of The “idea” of wagewage

Fringe Fringe BenefitsBenefits- -

DefinitioDefinitionn- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

Fringe benefits are a form of remuneration offered by the

employer not strictly connected to the employee’s

individual tasks.

OUR UNDERSTANDING

OF FRINGE BENEFITS

Belgium Germany Italy Lithuania Netherlands Spain

Company cars X X X X

Vouchers X X X X X

Hospitalisation insurance

X X X

Additional pension X X X X X

Saving schemes X X X X

Bonus X X X X

Child care X X X

Additional holidays X X X

Flexible working time X X X X

MAIN TYPES OF FRINGE BENENFITS

Belgium Germany Italy Lithuania Netherlands Spain

Company cars X X X X

Vouchers X X X X X

Hospitalisation insurance

X X X

Additional pension X X X X X

Saving schemes X X X X

Bonus X X X X

Child care X X X

Additional holidays X X X

Flexible working time X X X X

MAIN TYPES OF FRINGE BENENFITS

The “idea” of The “idea” of wagewage

Fringe Fringe BenefitsBenefits- Definition- Definition

- Main types- Main types

- Legal - Legal situation situation- Taxation- Taxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

LEGAL SITUATION OF FRINGE BENEFITS• No legal regulations

• Collective agreements

• Company agreements

• Contract of employment

• Operational practice

The “idea” of The “idea” of wagewage

Fringe Fringe BenefitsBenefits- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- - TaxationTaxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

TAXATION

Taxed like normal income

Tax-free until certain limits

Tax-free

The Netherlands

X X X

Italy X X

Belgium X

Germany X X X

Lithuania X X X

Spain X

WHAT WE HAVE WHAT WE HAVE LEARNED…LEARNED…

……different understanding of fringe different understanding of fringe benefitsbenefits

……different taxation system in every different taxation system in every countrycountry

……groups of fringe benefits:groups of fringe benefits:- non-cash benefits- non-cash benefits- insurance benefits- insurance benefits- monetary benefits- monetary benefits- benefits in form of sparetime- benefits in form of sparetime

3. 3. CONSEQUENCECONSEQUENCE

SS

The “idea” of The “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequenConcequencesces

- for the - for the employeremployer- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

CONSEQUENCES FOR THE

EMPLOYERPROS CONS

LoyaltyAdministration

costs

Infrequent turnover

Match with employee‘s

needs

Public image of the company

Tax savings

The “idea” of The “idea” of wagewage

Fringe Fringe BenefitsBenefits- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- - TaxationTaxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

TAXATION

Taxed like normal income

Tax-free until certain limits

Tax-free

The Netherlands

X X X

Italy X X

Belgium X

Germany X X X

Lithuania X X X

Spain X

The “idea” of The “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequenConcequencesces

- for the - for the employeremployer- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

CONSEQUENCES FOR THE

EMPLOYERPROS CONS

LoyaltyAdministration

costs

Infrequent turnover

Match with employee‘s

needs

Public image of the company

Tax savings

The “idea” of The “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequenConcequencesces- for the - for the employeremployer

- for the - for the employeeemployee- for the state- for the state

RecommendationRecommendationss

CONSEQUENCES FOR THE

EMPLOYEEPROS CONS

Economic and social security

Economic and social security

Tax reductionse.g. lack in pensions

Satisfaction

Motivation

The “idea” of The “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequenConcequencesces- for the - for the employeremployer

- for the - for the employeeemployee

- for the - for the statestate

RecommendationRecommendationss

CONSEQUENCES FOR THE STATE

•Lack in social security system

•Is there a connection between fringe benefits and economic growth?

Economic Growth

Use of benefits

Flexibility

WHAT WE HAVE WHAT WE HAVE LEARNED…LEARNED…

Flexibility for the Flexibility for the employeremployer

Social & Social & economic economic

security for security for the employeethe employee

Tax reductionTax reduction

Lack in Lack in Security Security SystemSystem

4. 4. RECOMMENDATIONSRECOMMENDATIONS

The “idea” of The “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommRecommen-en-

dationsdations

RECOMMENDATIONS

1.Implement the use of those benefits

concerning equal opportunities (women)

- The gender pay gap - Family benefits

The “idea” of The “idea” of wagewage

Fringe Fringe BenefitsBenefits- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

2. Extend “CAFETERIA SYSTEM” to other

countries

RECOMMENDATIONS

•Possibility to combine fringe benefits

in a flexible way

•The employee can choose fringe benefits according to his needs

Wage in generalWage in general

Fringe Fringe BenefitsBenefits- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

- - CafeteriaCafeteria- System- System

Legal differences Legal differences between between countriescountries

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommendationRecommendationss

CAFETERIA SYSTEM

• possibility to combine fringe benefits

in a flexible way

•the employee can choose fringe benefits

according to his needs

•known in Germany, Belgium and the

Netherlands

The “idea” of The “idea” of wagewage

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

RecommRecommen-en-dationsdations

FLEXIBILITFLEXIBILITYY

RECOMMENDATIONS

MINIMUM WAGE (fixed by law)

FIXED WAGE (bargaining)

FRINGE BENEFITS (higher flexibility)

3) Wage policy – a way to flexicurity...

SECURITSECURITYY

Wage in generalWage in general

Fringe BenefitsFringe Benefits

- Definition- Definition

- Main types- Main types

- Legal situation- Legal situation

- Taxation- Taxation

- Cafeteria - Cafeteria SystemSystem

SimilaritiesSimilarities

Legal differences Legal differences between between countriescountries

ConcequencesConcequences

- for the - for the employeremployer

- for the - for the employeeemployee

- for the state- for the state

Fringe benefits Fringe benefits and Flexicurityand Flexicurity

RecommendationRecommendationss