Flexibility of the Fringe Benefits

1. Flexibility of the Fringe Benefits

2. Welcome Evelyne van Dyck Plantijn University Antwerpen Belgium Brigitte König HfWU Nürtingen - Geislingen Germany Michele Bazzi University of Bologna Italy Cecilia Orlandini University of Florence Italy Lina Pileicikaite Kaunas College Lithuania Asta Benetyte Mykolas Romeris University Lithuania Sylvana Janssen INholland University The Netherlands Anna Puigdecanet University of Girona Spain Coaches: Horst Blumenstock, Luc Broes

3. FLEXIBILITY OF THE FRINGE BENEFITS • THE “IDEA” OF WAGE • FRINGE BENEFITS • CONSEQUENCES • RECOMMENDATIONS

4. 1. THE ”IDEA” OF WAGE

5. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations "IDEA" OF WAGE • Definition - Employment benefit • - Family wage • Contract • Law situation

6. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations WAGE CALCULATION • Taxes • Social contributions • Payment - in money • - in kind • Type of wage - per unit of time • - per unit of work

7. WHAT WE HAVE LEARNED… • …wage is obligatory in the contract • …the wage calculation is in most countries similar • …wage is the basis to talk about fringe benefits

8. 2. FRINGE BENEFITS

9. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations OUR UNDERSTANDING OF FRINGE BENEFITS Fringe benefits are a form of remuneration offered by the employer not strictly connected to the employee’s individual tasks.

10. MAIN TYPES OF FRINGE BENENFITS

11. MAIN TYPES OF FRINGE BENENFITS

12. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations LEGAL SITUATION OF FRINGE BENEFITS • No legal regulations • Collective agreements • Company agreements • Contract of employment • Operational practice

13. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations TAXATION

14. WHAT WE HAVE LEARNED… • …different understanding of fringe benefits • …different taxation system in every country • …groups of fringe benefits: - non-cash benefits - insurance benefits - monetary benefits - benefits in form of sparetime

15. 3. CONSEQUENCES

16. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations CONSEQUENCES FOR THE EMPLOYER

17. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations TAXATION

18. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations CONSEQUENCES FOR THE EMPLOYER

19. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations CONSEQUENCES FOR THE EMPLOYEE

20. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommendations CONSEQUENCES FOR THE STATE • Lack in social security system • Is there a connection between fringe benefits and economic growth? Flexibility Economic Growth Use of benefits

21. WHAT WE HAVE LEARNED… Flexibility for the employer Tax reduction Social & economic security for the employee Lack in Security System

22. 4. RECOMMENDATIONS

23. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommen- dations RECOMMENDATIONS • Implement the use of those benefits concerning equal opportunities (women) • - The gender pay gap • - Family benefits

24. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation • Concequences - for the employer - for the employee - for the state • Recommendations RECOMMENDATIONS 2. Extend “CAFETERIA SYSTEM” to other countries • Possibility to combine fringe benefits • in a flexible way • The employee can choose fringe benefits according to his needs

25. Wage in general • Fringe Benefits - Definition - Main types - Legal situation - Taxation - Cafeteria- System • Legal differences between countries • Concequences - for the employer - for the employee - for the state • Recommendations 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

26. The “idea” of wage • Fringe Benefits - Definition - Main types - Legal situation - Taxation • Concequences - for the employer - for the employee - for the state • Recommen-dations RECOMMENDATIONS 3) Wage policy – a way to flexicurity... FLEXIBILITY FRINGE BENEFITS (higher flexibility) FIXED WAGE (bargaining) MINIMUM WAGE (fixed by law) SECURITY

27. Wage in general • Fringe Benefits - Definition - Main types - Legal situation - Taxation - Cafeteria System • Similarities • Legal differences between countries • Concequences - for the employer - for the employee - for the state • Fringe benefits and Flexicurity • Recommendations