The flexible compensation has a series of economic constraints, which imply that the total amount allocated to it cannot exceed 30% of the worker’s annual salary. In the same way, the remuneration you receive cannot be less than the SMI.
It must be borne in mind that the contribution base on the payroll of the employee who enjoys flexible remuneration will not undergo any change, but will be the same as that of a worker who is not a member of the plan. The change always occurs in the personal income tax.
Also, it must be taken into account that It is not about the delivery of cash the employee to buy certain goods. The concept covers obtaining certain products or services (restaurant voucher, transport voucher or nursery voucher) free of charge or at a lower cost than the market.
At the legal level, in Spain there are two legislative texts that regulate flexible remuneration.
- First is the “Law 35/2006, of November 28Personal Income Tax and partial modification of the Corporate Tax, Non-Resident Income and Wealth Tax laws”.
- Secondly, we must refer to the “Royal Decree 439/2007, of March 30which approves the Personal Income Tax Regulations and modifies the Pension Plans and Funds Regulations, approved by Royal Decree 304/2004, of February 20”.
Law 35/2006, of November 28
The law explains in detail what are the full income from work, in its article 17.1 and what are the income in kind, in its article 42.1.
As Sodexo points out:
- Regarding the yields, they can be summarized in those compensation or profits derived from personal work or from the employment relationship maintained by the employee and which, of course, are not income from economic activities.
- As regards income in kind, this is the name given to the use of goods, rights or services free of charge or at a lower price than what is given in the market. Of course, if the company delivers an amount in cash for the acquisition of said goods, they will not be considered as such.
Royal Decree 439/2007, of March 30
For its part, the Royal Decree, in its article 26.1, establishes a basic rule when it comes to flexible remuneration: the salary in kind (whether it’s food, childcare, public transport…) may not exceed 30% of gross salary in total of the worker
On the other hand, when there is an agreement to pay salary in kind, the worker’s salary will become a flexible remuneration, that is, it will consist of two parts, one part will be the one that will be received in money and the other the one that will be received. in species.
