Fringe
Benefits

The amounts in question, which employers may grant on an individual basis to each employee at their discretion, are exempt from both income tax and social security contributions for the year, up to the specified maximum amount.

 

The desired amounts may be granted either as gifts in kind or services (including vouchers) or as reimbursements for “utility bills” (gas, water, electricity), rent for the primary residence, or interest on loans for the primary residence. This is subject to the submission of corresponding self-declarations by the employees.

 

In any case, non-monetary compensation (both in the case of actual non-monetary compensation and in the case of reimbursement of the above-mentioned expenses) must be listed on the pay stub. The above-mentioned limits apply per employee and not per employment relationship. Therefore, if an employee has multiple employment relationships in a year, the limits apply to all employment relationships combined. If the limits are exceeded, the entire amount is subject to tax and social security contributions.