Evelyne van Dyck Brigitte Knig Michele Bazzi Cecilia

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Evelyne van Dyck Brigitte König Michele Bazzi Cecilia Orlandini Lina Pileicikaite Asta Benetyte Sylvana

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

FLEXIBILITY OF THE FRINGE BENEFITS 1. THE “IDEA” OF WAGE 2. FRINGE BENEFITS 3.

FLEXIBILITY OF THE FRINGE BENEFITS 1. THE “IDEA” OF WAGE 2. FRINGE BENEFITS 3. CONSEQUENCES 4. RECOMMENDATIONS

1. THE ”IDEA” OF WAGE

1. THE ”IDEA” OF WAGE

n n The “idea” of wage Fringe Benefits - Definition - Main types -

n n 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

n n The “idea” of wage Fringe Benefits - Definition - Main types -

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

WHAT WE HAVE LEARNED… n …wage is obligatory in the contract n …the wage

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

2. FRINGE BENEFITS

2. FRINGE BENEFITS

n n The “idea” of wage Fringe Benefits - Definition OUR UNDERSTANDING OF FRINGE

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

MAIN TYPES OF FRINGE BENENFITS Belgium Company cars Germany Italy Lithuania Netherlands X X

MAIN TYPES OF FRINGE BENENFITS Belgium Company cars Germany Italy Lithuania Netherlands X X X Spain Vouchers X X X Hospitalisation insurance X X X Additional pension X X X Saving schemes X X Bonus X X Child care X X Additional holidays X X Flexible working time X X X X X

MAIN TYPES OF FRINGE BENENFITS Belgium Company cars Germany Italy Lithuania Netherlands X X

MAIN TYPES OF FRINGE BENENFITS Belgium Company cars Germany Italy Lithuania Netherlands X X X Spain Vouchers X X X Hospitalisation insurance X X X Additional pension X X X Saving schemes X X Bonus X X Child care X X Additional holidays X X Flexible working time X X X X X

n n The “idea” of wage Fringe Benefits - Definition - Main types -

n n The “idea” of wage Fringe Benefits - Definition - Main types - Legal situation - Taxation n n 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

n n TAXATION The “idea” of wage Fringe Benefits - Definition - Main types

n n TAXATION The “idea” of wage Fringe Benefits - Definition - Main types - Legal situation - Taxation n n Concequences - for the employer - for the employee - for the state Taxed like Tax-free until normal income certain limits The Netherlands X X Italy X X Tax-free X Recommendations Belgium X Germany X X X Lithuania X X X Spain X

WHAT WE HAVE LEARNED… n …different understanding of fringe benefits n …different taxation system

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

3. CONSEQUENCES

3. CONSEQUENCES

n The “idea” of wage n Fringe Benefits - Definition - Main types -

n The “idea” of wage n Fringe Benefits - Definition - Main types - Legal situation - Taxation n Concequenc es - for the employer CONSEQUENCES FOR THE EMPLOYER PROS Loyalty - for the employee - for the state n Recommendations Infrequent turnover Public image of the company Tax savings CONS Administration costs Match with employee‘s needs

n n TAXATION The “idea” of wage Fringe Benefits - Definition - Main types

n n TAXATION The “idea” of wage Fringe Benefits - Definition - Main types - Legal situation - Taxation n n Concequences - for the employer - for the employee - for the state Recommendations Taxed like Tax-free until normal income certain limits The Netherlands X X Italy X X Belgium Tax-free X X Germany X X X Lithuania X X X Spain X

n The “idea” of wage n Fringe Benefits - Definition - Main types -

n The “idea” of wage n Fringe Benefits - Definition - Main types - Legal situation - Taxation n Concequenc es - for the employer CONSEQUENCES FOR THE EMPLOYER PROS Loyalty - for the employee - for the state Infrequent turnover n Recommendations Public image of the company Tax savings CONS Administration costs Match with employee‘s needs

n The “idea” of wage n Fringe Benefits - Definition - Main types -

n The “idea” of wage n Fringe Benefits - Definition - Main types - Legal situation - Taxation n Concequenc es - for the employer - for the employee - for the state n Recommendations CONSEQUENCES FOR THE EMPLOYEE PROS CONS Economic and social security Tax reductions e. g. lack in pensions Satisfaction Motivation

n The “idea” of wage n Fringe Benefits - Definition - Main types -

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

WHAT WE HAVE LEARNED… Flexibility for the employer Social & economic security for the

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

4. RECOMMENDATIONS

4. RECOMMENDATIONS

n The “idea” of wage n Fringe Benefits - Definition - Main types -

n The “idea” of wage n Fringe Benefits - Definition - Main types - Legal situation - Taxation n Concequences - for the employer - for the employee - for the state n Recommen dations RECOMMENDATIONS 1. Implement the use of those benefits concerning equal opportunities (women) - The gender pay gap - Family benefits

n n The “idea” of wage Fringe Benefits - Definition - Main types -

n n The “idea” of wage Fringe Benefits - Definition - Main types - Legal situation n n 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

n n Wage in general Fringe Benefits - Definition - Main types - Legal

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

n The “idea” of wage n Fringe Benefits - Definition - Main types -

n The “idea” of wage n Fringe Benefits - Definition - Main types - Legal situation - Taxation n n 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

n Wage in general n Fringe Benefits - Definition - Main types - Legal

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