Under Belgian law, it is permissible for an employer to remunerate his employees partially with benefits in kind. This includes, for example, the provision of a car, a smartphone or hospital insurance for private purposes.
Why is it worthwhile to pay employees via benefits in kind rather than in cash?
This is because the benefits are assessed on a flat-rate basis.
These packages are usually worth less than the actual value of the benefit provided. For example, for a smartphone made available to an employee for private use the flat rate is EUR 3.00/month, regardless of the purchase value of the device.
Taxes and social security contributions will be calculated on the basis of this lump sum.
As a result, for a cash payment of equivalent value, the amount of social security contributions and taxes due would be higher.
In addition, some environmentally friendly benefits, such as cycling, are completely free of social security contributions and taxes!
