BDW I jumps on the flexible compensation bandwagon!

Main points of the Supernote 👀 👀

The federal government 'BDW I' (also called the 'Arizona coalition') has laid out an ambitious plan focusing on a fairer tax system and the modernization of the labor market. It aims to install a fairer system between personal income tax and corporate tax, increase the net salary of employees to make work more attractive (as opposed to unemployment), and prepare the organization of the labor market for the future.

In the context of these three key points, an interesting place is reserved for flexible compensation systems (cafeteria plan, mobility budget, meal vouchers). 🙌

Cafeteria plan 🛒

The cafeteria plan (or 'flex plan') will be legally anchored. Hallelujah!

Although cafeteria plans are increasingly becoming the rule rather than the exception, there is still no uniform legislation on this important HR topic.
Cafeteria plan providers have therefore had to rely on a multitude of legal sources (rulings, Wage Protection Act, Social Security laws, Income Tax Code) - which does not simplify matters.

The announcement in the Supernote that cafeteria plans will have a legal framework is therefore a good thing. It institutionalizes an HR practice that has existed for some time in both SMEs and large companies and thus confirms the significant HR value of such a plan.

Finally, the Supernote already mentions that the legal framework will consist of a maximum gross salary swap of 20% - a rule that actually already existed in the Wage Protection Act. Also, the administrative burden will be reduced, which employers will certainly appreciate. Voices are being raised that the "funding factor" (which employers sometimes use to make the cafeteria plan cost-neutral) will give way to a similar system as the mobility budget (where the employer can deduct the software cost from the employee's budget).

Mobility budget 🚴‍♀️

The federal mobility budget will be structurally extended. Hallelujah number 2!

After years of disappointment about the limited scope of the mobility budget, this increasingly popular concept is seriously gaining momentum.

Thus, the Supernote mentions that every employee with (entitlement to) a company car will have the opportunity to opt for a mobility budget. Offering a mobility budget will thus become a legal obligation for every organization that offers company cars.

Additionally, at the employer's discretion (not mandatory), a mobility budget can be offered to employees who do not have access to a company car. This measure replaces the existing arrangements for employer interventions in the home-to-work and private travel of the employee, with the aim of simplifying the existing system.

In the corridors, it is said that these regulations will come into effect between 2027 and 2028.

Meal Vouchers 🍱

The value of meal vouchers will gradually increase to €12. This offers a great opportunity to further boost the purchasing power of employees.

Eco-vouchers and sports/culture vouchers will, however, disappear. What is given must be balanced!