It is possible that in recent times you have heard about flexible remuneration,one of the most talked about concepts of what we have in 2019, in everything related to the human resources sector.

If you have indeed heard of it, but you have doubts or do not know what it is about, below we indicate the main advantages offered by flexible remuneration to companies and their employees.

What is flexible remuneration?

At a time when employee pay raises are complicated for companies, flexible remuneration, also known as salary in kind, is shown as the best alternative to try to attract and retain talent in companies.

It consists of a remuneration model through which a employee distributes the collection of his remuneration in two parts: one in cash, and another through a series of products, rights or services offered by the company itself, such as medical insurance, restaurant check, childcare service, training and courses, pension plans, etc., which are also tax exempt.

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In this way, a company is in a position to be able to offer better remuneration conditions to its employees, without the need to increase the costs or salaries of its employees. On the other hand, through flexible remuneration, an employee would increase his salary without this being an extra expense for the company.

It is important to differentiate this type of flexible remuneration,which allows the employee to make the most of their salary, from the benefits offered by the company,which are closely related to the human resources policy or branding of the company itself.

Main advantages of flexible remuneration

Increasing the purchasing power of employees

As we have already mentioned, one of the main advantages offered by flexible remuneration is the possibility of increasing the purchasing power of employees, without the need to raise their salary or have to make an extra expense in personnel costs. Both the worker and the company win.

It should also be noted that the benefits offered to workers, in addition to being tax exempt,once they have been paid into the payroll, are deducted directly from the gross salary, which allows you to have a lower tax base.

Likewise, this remuneration model allows employees to decide which part of their payroll they want to receive in cash,within the legal limits, and which through products or services that enjoy the tax advantages that we have discussed.

Increased motivation and productivity

This pay model improves workers’ conditions and therefore also their satisfaction, which translates into greater motivation and productivity. This is a clear advantage, since a motivated worker will help the company to achieve its stated objectives.

Improves the image of the company

Opting for a flexible remuneration model is shown as a commitment to improve the conditions of employees,which translates into an improvement in the image of the company.

An improvement of the image that will offer benefits not only to the public, but also to the employees themselves, since it will allow to attract talent, retain it, and reduce the turnover of the staff.

Disadvantages of a flexible remuneration model

To implement a flexible remuneration model, it is essential to have an adequate and effective communication plan. Otherwise, more than an advantage, it could become an inconvenience for the company, since the worker could have doubts about the policy of the model and its benefits.

It is also essential that this remuneration plan is part of a plan belonging to the compensation policy and the benefits of the organization. If this were not the case, it could generate an unfavorable working climate, as well as the demotivation of employees, since they would understand that their remuneration conditions are below what they deserve.

How to implement a flexible remuneration model?

If you want to implement a flexible remuneration model in your company, the first thing will be to make an analysis in which you establish what products you will offer to those workers who take part in this remuneration plan.

The next step will be to design the model, where you will have to pay special attention to internal communication,which will be key to solve any type of doubt that a worker may have about it.

Finally, all that remains is to implement the model. To do this, it will be necessary to sit down individually with each worker, to establish what amount of their payroll will go to products or services of the company itself with a maximum of 30% of their gross salary.

Closely monitoring flexible remuneration is also important,in order to assess whether it is working or achieving the expected results, and to be able to make the appropriate modifications if necessary.


The flexible remuneration model, also known as salary in kind, allows companies to increase the salary of their employees, without the need to make an extra expense, through receiving a percentage of their payroll in services or products of the company, which enjoy significant tax advantages.