“Why Many Companies Are Not Paying the €2,000 Payslip Bonus: The Reasons Behind”

The Benefits of Fringe Benefits in Payroll

One of the bonuses that can be included in an employee’s paycheck is the so-called fringe benefits, goods and services that fall under corporate welfare, which can be added to the salary, thus providing a sort of increase to the employee.

Why Few Companies Take Advantage of Fringe Benefits

However, data shows that only a small percentage of employers take advantage of fringe benefits to reward employees or enrich their compensation.
The motivation behind this, according to a study conducted by The European House-Ambrosetti, may lie in the fact that companies want to avoid granting fringe benefits only to some employees to prevent creating disparities among workers.

The investigation by The European House-Ambrosetti, analyzing a sample of 273 companies in 2023, revealed that only 28% of the participants acknowledged providing fringe benefits to their employees.
The others (around 40%) justified their decision by stating they did not want to create inequality among workers, as they could not benefit equally for childless workers, causing dissatisfaction within the company.

Changes in Fringe Benefits in 2024

In 2024, the maximum exemption for fringe benefits has increased to 1,000 euros for childless workers and 2,000 euros for those with at least one dependent.
Although differences still exist, even employees without children may receive a more substantial bonus, thus limiting disparities.
However, companies have the possibility to offer an equal bonus for all employees, for instance, 1,000 euros.

It’s worth noting that employees cannot compel their employers to provide fringe benefits as it remains at the company’s discretion.
The form in which these benefits are granted is also decided by the company.
For example, typical fringe benefits may include a company car, technological tools like phones or computers, or meal vouchers.

Additionally, some companies prefer to provide services such as scholarships for employees’ children or a contribution towards the care expenses of children or dependents.
In recent years, eligible expenses for fringe benefits have expanded to cover utility bills for the employee’s residence.

An exciting development in 2024 is the ability to reimburse rent expenses.
For individuals living in a house purchased or renovated through a mortgage, there is an option to reimburse the interest payments.
However, it’s essential to remember that exceeding the maximum threshold will result in the entire amount being taxed as employment income, not just the excess part.