- What is corporate welfare?
- Who is entitled to corporate welfare?
- Types of contracts and entitlement to corporate welfare
- Extension of benefits to family members
- Who pays for corporate welfare?
- What is included in corporate welfare?
- How does corporate welfare work on the payslip?
- How is corporate welfare taxed on the payslip?
- When is corporate welfare provided?
- How to access corporate welfare?
What is corporate welfare?
Corporate welfare includes a set of goods, services, and benefits that a company can provide to its employees to improve their well-being and quality of life, both personally and professionally. These benefits may cover areas such as health, education, social security, transportation, leisure, and much more. The economic value of welfare elements provided to employees is subject to special tax rules designed to encourage their widespread adoption.
Who is entitled to corporate welfare?
The provision of corporate welfare services is optional for companies; however, once the company decides to offer them, they must be guaranteed to all employees or homogeneous categories of employees. If this is not the case, the benefits provided will not be eligible for the preferential tax treatment outlined by current regulations.
Types of contracts and entitlement to corporate welfare
Corporate welfare can be provided to all types of employees, regardless of the nature of their contract. This can include, for example:
- Permanent employment contracts;
- Fixed-term employment contracts;
- Apprenticeship contracts;
- Part-time employment contracts.
It is important to emphasize that, in any case, to benefit from tax advantages, welfare services must be offered to homogeneous categories of workers, defined based on objective criteria such as contract level, job duties, or work locations.ps itself with an accurate, reliable attendance management system that complies with local employment laws and company policy.
Extension of benefits to family members
Corporate welfare benefits can also be extended to employees’ family members. Starting in 2025, the regulations have redefined which family members can benefit from these services, now including:
- Ascendants (i.e., parents, grandparents, great-grandparents, and so on in direct lineage).
- Partner: including the partner in civil unions (former Law No. 76 of May 20, 2016), as long as they are not legally and effectively separated;
- Children: including adopted, fostered, or affiliated children;
Who pays for corporate welfare?
Corporate welfare is financed by the company and made available to the benefiting employees, often through an online platform. The costs borne by the company usually enjoy tax advantages, encouraging its use.
What is included in corporate welfare?
Benefits may include:
- Complementary social security (contributions to pension funds).
- Supplementary healthcare (insurance policies, health funds);
- Contributions for education (tuition fees, books, courses);
- Recreational and cultural activities (gym, cinema, theater subscriptions);
- Family services (nurseries, babysitters, elderly care);
- Transportation (public transport subscriptions);
How does corporate welfare work on the payslip?
In most cases, the elements of corporate welfare enjoyed by the employee appear on the payslip, although they often do not affect the net salary. The company is indeed required to report the value of the benefits provided on the payslip to ensure transparency about what is provided and guarantee proper tax treatment.
How is corporate welfare taxed on the payslip?
The tax treatment of corporate welfare benefits depends on the type of service or good offered. Benefits such as public transport, training, and family services are completely exempt from taxation. Others, like meal vouchers, contributions to supplementary social security and healthcare assistance, and the granting of shares, are exempt only up to a certain annual economic limit.
When is corporate welfare provided?
The provision depends on company policies, any agreements made between the company and social partners, as well as what is outlined by the applicable national collective labor agreement (NCLA) in case it foresees the provision of welfare elements. In most cases, the timing of the provision is defined within company regulations and occurs on an annual basis.
How to access corporate welfare?
Access to welfare by the beneficiary employees is done through methods established by the company, often via dedicated online platforms. In this case, employees receive a welfare credit which they can use to select the desired benefits from those offered by the platform. In other cases, vouchers or forms are used to request access to specific services, such as meal vouchers.
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