Flexible remuneration for training lets you use part of your gross salary to access courses and improve your skills, with tax savings and no impact on your net pay. It also benefits the company by boosting talent and motivation.
What is flexible compensation in training?
Flexible remuneration is a way to receive part of your gross salary through products or services exempt from income tax, allowing you to increase your net salary without the company having to raise your salary. You can allocate up to 30% of your annual gross salary to these benefits, including professional training.
What does the training benefit consist of?
This benefit allows you to access training related to your job position or professional development using part of your gross salary, without paying income tax on it.
The amount you allocate to training is directly deducted from your paycheck, which means a direct tax saving and a boost to your professional growth.
Note that for Trainings to function properly we require that both Benefits Training and the Trainings modules both be active. If one is not activated then it will appear as if the benefit is not active.
What are the advantages of choosing training as a benefit?
For the employee:
- Tax savings: You don’t pay income tax on the amount allocated to training.
- Quality training: You can access courses, certifications, or master’s programs that might otherwise be expensive.
- Professional development: You improve your skills and increase your value in the job market.
- Higher net salary: By reducing your taxable income, you receive more money in your paycheck.
Employees can pay for the training themselves, and then get a reimbursement with the tax exemptions
For the company:
- No extra costs: The company doesn't pay more or increase social security contributions.
- More skilled and motivated talent: Improves productivity, retention, and job satisfaction.
What kind of training can be included?
- Technical courses (programming, accounting, data analysis…)
- Professional certifications (Project Management, languages, digital marketing…)
- Soft skills (leadership, time management, communication…)
- University or postgraduate education
- Online training (Coursera, Udemy, business schools…)
Important: The training must be approved by the company and managed as part of the benefits plan.
Limitations:
- You can allocate up to 30% of your annual gross salary to remuneration in kind concepts in total (training, meals, transport, insurance, others…).
- The training must be linked to your professional development.
- Benefits in kind cannot affect the employee’s minimum monthly cash salary.
How does this affect your payslip?
The course amount is deducted from your gross salary. Since it's tax-exempt, your net salary increases.
Practical example:
- Course: €200
- Divided over 4 payslips: €50 per payslip
- Estimated tax savings: €200 (depending on your tax rate)
- Result: you pay less for the same course, and it is not taxed as income.
FAQ
1. Can employees choose any course?
Only if it is related to your job position or career plan. The company must approve it beforehand.
2. Does it cost the company anything?
If the courses are paid through salary sacrifice, the cost is borne by the employee from their gross salary.
If the company provides a social benefit fund for training beyond the employee’s salary, then it is a cost for the company.
There are cases where these payments are handled in a mixed way.
3. Is it deducted from the net salary?
No. It is deducted from the gross salary, which results in tax savings.
4. Can I choose training and other benefits at the same time?
Yes. You can combine training with other benefits such as meal vouchers, childcare, transportation, or health insurance, always within the maximum 30% of remuneration in kind to be perceived per year.
5. Do I have to do the training during working hours?
It depends on the type of training and the agreement with the company. Some can be done outside working hours.
6. How do I request this benefit?
Through Factorial Benefits, you can request a course and receive the corresponding approvals. The platform takes care of the rest
7. What is the tax exemption for Trainings?
There is no limit in the tax exemption for Wellness in Spain.
8. When are training requests sent to Compensation?
When a training request is made for flexible remuneration we prepare the cost schedule in advance of the approval, respective of the current date. In other words, if the employee requests distribution over 3 months we schedule one for the current day, one for a month later, and a final payment after 2 months from the current day.
We periodically check for approved trainings and when one is approved, and mark them ready for compensation when they have been approved, or discard them if the request was denied. Then the cost schedule is paid out at the close of the benefit cycles.
9. How can an employee request a training with the benefit active?
Currently, requests have to be made through the Benefits module and the flow is not active in Training.