Flexible compensation is a compensation model in which part of your salary is used to purchase products or services, such as health insurance, transportation vouchers, or restaurant tickets. This part of your salary is not subject to income tax withholding, allowing you to pay less tax.
To know more about benefits, click here.
You can integrate it with a3innuva. Please ask us for more information.
How the billing cycles work?
The Cycles in Factorial Benefits is from the 20th to the 19th of the following month. This is to let accounts enough time to close the payroll.
How do I extract the Payroll Cycle information to prepare the payslips?
The consolidated information by employee and by concept of the consumption of Benefits in flexible compensation can be downloaded directly from the “Payroll” section.
.png)
This information is available on the 20th of each month, for each payroll cycle.
List of transactions per employees
In the “Accounts” section you will find the complete list of transactions.
- Selecting “Benefits” in the “Card Service” filter
- You can filter by dates and criteria you need
- Download the detail in CSV or Excel format with a single click
.png)
How does a Payslip with Flexible remuneration looks like in Spain?
Here you have an example of payslip for Spain:
Calculation Assumptions
| Concept | Amount (€ / month) |
|---|---|
| Agreed gross salary | 2,000 |
| Flexible (meal) | 100 |
| Flexible (transport) | 30 |
| Flexible (health insurance) | 50 |
| In-kind compensation (wellness) | 30 |
To maximize tax savings, the employee “sacrifices” €180 of their effective salary (meal + transport + insurance), which are exempt from personal income tax (IRPF). The wellness (€30) is not exempt.
Payslip Example
1. Earnings
| Earning | Type | Amount € |
|---|---|---|
| Cash salary | Cash | 1,790 |
| Meal vouchers (IRPF exempt) | In-kind | 100 |
| Public transport (IRPF exempt) | In-kind | 30 |
| Health insurance (IRPF exempt) | In-kind | 50 |
| Wellness / Gym (taxable) | In-kind | 30 |
| Total earnings | 2,000 |
2. Employee Deductions
| Deduction | Base € | % | Amount € |
|---|---|---|---|
| Social Security (4.70%) | 2,000 | 4.70 | 94 |
| Unemployment (1.55%) | 2,000 | 1.55 | 31 |
| Professional training (0.10%) | 2,000 | 0.10 | 2 |
| Total Social Security | 127 | ||
| Income tax (IRPF) (10% on €1,820) | 1,820 | 10.00 | 182 |
| Total deductions | 309 |
Note: IRPF base = €1,790 cash + €30 wellness (the €180 exempt amounts are not taxed).
3. Net Amount to Receive:
- Net in cash: €1,790 – €127 (Social Security) – €182 (IRPF) = €1,481
- Value of benefits: €100 (meal) + €30 (transport) + €50 (insurance) + €30 (wellness) = €210
- Total compensation received (cash + benefits): €1,691
4. Company Cost
| Concept | Base € | % | Amount € |
|---|---|---|---|
| CC (23.60%) | 2,000 | 23.60 | 472 |
| Unemployment (5.50%) | 2,000 | 5.50 | 110 |
| AT-EP (1.45% average) | 2,000 | 1.45 | 29 |
| Vocational Training (0.60%) | 2,000 | 0.60 | 12 |
| FOGASA (0.20%) | 2,000 | 0.20 | 4 |
| Total company contribution | 627 € |
Total company cost: 2,000 € + 627 € = 2,627 € (the sacrificed salary does not reduce the contribution base)