What are the alternatives to a raise? The possibilities are very diverse, from company cars and company pension schemes to further training courses, vouchers and benefits in kind. So don’t bury your head in the sand if the boss refuses a raise. Instead, suggest these tax-free alternatives that will benefit both parties.
What if you want your employer to give you a raise, but they are unwilling to give it to you? There can be various reasons for this: If the company is currently in a financially difficult situation, salary increases are often not possible. Small companies such as start-ups in particular often do not have the means to fulfill their employees’ wishes. Perhaps the order situation is not so favorable at this point in time. But it can also be because your employer is simply not willing to meet you with an increase. Do not despair at this point. Because there are many alternatives that are beneficial to your wallet and at the same time do not burden your business accounts too much. You will now find out what these are.
Alternative two to a salary increase: The company pension scheme
More and more employers are offering their employees a company pension as soon as they have passed their probationary period. Each company has up to 500 per employee/year tax-free to support the employees with additional contributions. We recommend that you choose a contract with a deductible. This gives you the opportunity not only to rely on your employer’s share but also to take action yourself.
The special thing about it is: The money comes from your gross wage. This means that in the end you would even have to pay less social security contributions, but still do something for your retirement provisions. Now, if you have concerns about this contract when changing jobs, we can put you at ease. Every company is obliged to take over an existing company pension scheme. It is important, however, that you are only entitled to the employer-financed portion if you can prove that you have been with the company for at least five years. Otherwise, the deposited amounts will be forfeited in the event of a change.
Alternative three to a raise: vouchers and benefits in kind
In terms of popularity with employees, benefits in kind and vouchers are the second most sought-after alternatives to a salary increase, right behind the company car. The fuel vouchers and job tickets for using public transport are particularly popular.
In general, a company has 528 at its disposal per year and employees. That means about 44 per month. Theoretically, it doesn’t matter which benefits in kind are involved. It is only important that employees are not allowed to receive this amount. Most companies, therefore, use prepaid cards that are only valid with selected contractual partners. This also includes petrol stations. If the company does not have its own canteen, benefits in kind can also be handed out as meal vouchers.
In addition, gifts for employees are possible three times a year, for example for birthdays, Christmas or anniversaries. The value of the gifts may not exceed 60 per event. A total of 180 are included for you.
Last but not least, discounts on in-house products or free amounts for personal needs are also possible. These are tax-free up to an amount of 1,080 per year.
Alternative four to the salary increase: subsidies for childcare
Another alternative to a salary increase is subsidies for crèche, daycare, daycare, kindergarten and after-school care. These are also exempt from tax and social security contributions and relieve the family budget. Depending on the region, up to 500 per month can be subsidized by the employer.
Alternative five to a raise: further training
Do you want to receive further training as part of your profession? Achieve more qualifications and thereby improve your chances of a better position? If the further training is also of benefit to your company, your employer can not only subsidize the costs but even cover them completely. For seminars that you want to attend privately and that have nothing to do with your work, you still have to pay yourself.
Which users do employers have of alternatives to a raise?
Companies also benefit from this approach. Because you can claim the special services as operating costs in the tax return. This does not require any significant additional effort in the bookkeeping. Since most companies work with accounting software, they have to enter the additional services into the system. The program takes care of the rest. By the way, interested parties can find out why the purchase is worthwhile here.
What does that mean exactly? A salary increase in the form of additional benefits does not lead to higher costs but is a good alternative for both sides.