The holiday season is approaching, and with it comes the question of how to make your employees happy while acting sustainably and meaningfully as a company. Traditionally, Christmas bonuses are the go-to choice to recognize your employees' hard work over the past year. But did you know there's an even better way that benefits both your employees and your company? Bonnie presents: Gifts in kind – the new stars among employee benefits!
Bonnie presents: Gifts in kind - the new stars among employee benefits!
Why not just Christmas bonuses?
Sure, at first glance, a Christmas bonus sounds tempting! A few extra euros in the pocket, and you can treat yourself to something nice, right? But often, the reality is different: The Christmas bonus is considered "other income" and is subject to both income tax and social security contributions. This means that only a fraction of the original amount actually reaches your employees.
Gifts in kind: More net from gross
Here’s where gifts in kind come in. Unlike Christmas bonuses, these are tax-free up to a certain limit of 600 EUR per year (50 EUR per month). For both companies and employees, this means:
- More net: The full amount reaches employees – with no deductions for taxes or social contributions.
- Less administrative effort: Handling gifts in kind is often simpler than paying out Christmas bonuses, saving time and resources in HR departments.
Employer branding and employee retention
In today’s job market, employee benefits and employer branding are key factors in attracting and retaining top talent. A flexible benefits program that meets the needs and wishes of employees strengthens employee retention and improves the work atmosphere. By offering modern benefits like the gift card, you demonstrate as an employer that you’re up-to-date and appreciate your employees – a vital part of positive employer branding.
Conclusion: A smart choice for both sides
Opting for gifts in kind instead of traditional Christmas bonuses is a step in the right direction. It offers clear advantages for both employees and companies: more net from gross, less administrative effort, and higher employee satisfaction. By introducing a gift card, you ensure that your benefits are always well-received and can be used flexibly.
Curious?
If you're interested in a modern and efficient solution to offer valuable benefits to your employees, be sure to check out HelloBonnie! With our HelloBonnie Smartcard, we help you create a personalized benefits offering that truly delights – flexible, tax-free, and tailored to the needs of your team.
