Multinationals could boost the effective take-home pay of European employees by up to 12 per cent by restructuring reward packages, says Taxand the tax adviser.
Multinationals and their employees are missing out because they are not realising the benefits of centralised benefit buying power, combined with local tax efficient compensation arrangements.
By focusing on maximising take-home pay and more meaningful benefits-in-kind, companies could allow employees to take home up to 12 per cent in additional after tax pay and buying power at little or no cost to themselves.
Sarah Pickering, global compensation, equity & employment tax service line leader, Taxand says:
“Multinationals need to revisit tax efficient pay structures, for example salary sacrifice plans that give social security savings as well as providing benefits with reduced income tax. Secondly, purchasing employee benefits on a regional or global basis for example pan-European or global medical insurance policies, allows improved benefits or cost savings to be negotiated. Thirdly providing employees with more benefit choices means that take-home pay goes further leaving.”