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February 10, 2023

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Alternatives to a salary increase: 10 practical examples

An appropriate salary is an important component that contributes to employee satisfaction. However, there are also additional benefits that are beneficial for both employees and companies. So-called corporate benefits also have an impact on employee salary satisfaction. These benefits can be financial or non-financial — they both contribute to increasing motivation and increasing identification with the company. Such offers are also beneficial for employers: They are often tax-deductible and help to maintain an image and create a strong employer brand.

We would like to present 10 practical examples to you in this blog post:

1. Continuing education opportunities

Continuing education is a great opportunity from which employees and employers can benefit. If the company covers the continuing education costs, the costs can be claimed for tax purposes as a business expense. Not only do employees themselves benefit from the training, they can also incorporate their new knowledge directly into their work.

2. Flexible working models

The desire for more flexibility in the working world has increased, particularly in recent months. Many can no longer imagine returning to the old world of work, where 9-to-5 is the order of the day. However, even today, there is still room for improvement when it comes to flexible working hours and a flexible place of work. Surveys show that employees want more flexibility, but in reality this request is only being pursued with restrictions.

3rd 4-day week

Working hours are reduced and the salary remains the same. The 4-day week model is, of course, a big step. So far, few companies have actually implemented it, even though many test phases confirm that employee productivity and satisfaction are increasing. Nevertheless, there is a lot of discussion about it and often not implemented after all. However, one thing is clear: Employers who dare to take this step and put it into practice will probably no longer be able to save themselves from applications.

4th workplace health promotion

Workplace health promotion offers are already being implemented by many companies. The offerings range from company doctors to massage and exercise offers to self-care days. The latter is a less widespread offer. Employees get one day off per year to simply do what is good for them. Read a book, spend time with loved ones or simply spend the whole day on the couch.

5th Child Care

The reconciliation of professional and private life is an important issue and should not be neglected for either parents. Childcare, daycare or childcare allowance can be received tax-free.

6. Benefits in children

600€ per year and employee per year are exempt from income tax and social security. In addition, 180€ per year and employee may be given away tax exempt. Instead of a salary increase, €50 per month can be paid out in kind. The employer saves himself taxes and the employees get more money out of them than if it were a normal salary increase. You can find more information about benefits in kind at RegionalHero.

7. Technical devices

When using cell phones, laptops, etc., it can make sense to negotiate private use of the devices. Companies also save taxes and social security contributions here and employees benefit from using them. By the way, this can also include reimbursement of private Internet charges.

8th Mobility

Another important issue: The payment of travel expenses, company cars or public transport tickets. Employees who commute a lot benefit significantly from a mobility subsidy. Job bikes, e-bikes and electric cars are also popular.

9. Meal allowance

Healthy eating is also an important topic at work. Regardless of whether there is a canteen or restaurants nearby, employees are happy to receive a meal allowance. Of course, there is also the option to top up monthly amounts to prepaid credit cards, which can be used for this purpose.

10th Gifts and Employee Discounts

Employee discounts on company products are a very popular offer. Apart from that, gifts for birthdays or special occasions express appreciation. On personal occasions, employers can offer their employees 3 times a year Up to 60€ tax free send.