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A lease car for all your employees
with Salary Plan
More and more companies are turning to a Salary Plan. Flexible remuneration is becoming a crucial weapon in the talent wars. With a leased car, you can offer to more employees the opportunity to choose a car and access the many benefits of leasing, without increasing your payroll costs. The result? You are in a better position to attract talent; you improve retention, and your employees are more motivated.
Salary Plan
Salary Plan is a solution that allows you to offer one of the most popular perks and benefits at no extra cost: The employee converts part of his gross salary to finance his leased car via his employer (restructuring of the salary package where the rent is deducted from the salary). An innovative way to become an even more attractive employer on the market.
Both employers and employees benefit by including the leased car in a Salary Plan.
The 5 advantages for the employer:
- 1.An attractive employer brand image on the market;
- 2.An alternative and innovative way to retain and motivate employees;
- 3.An enhanced salary package for all (residents and cross-border commuters);
- 4.Higher purchasing power for the employees due to economies of scale of the leasing company and the employer;
- 5.A non-costly alternative to salary increases.
The 5 advantages for the employee:
- 1.A new car every 3-4 years;
- 2.An easy, non-indexed, risk-free and all-inclusive operational leasing formula;
- 3.Savings through preferential rates and the leasing company's negotiating power;
- 4.Increased purchasing power;
- 5.No loss of salary in case of salary indexation.
How does the Salary Plan work?
A Salary Plan car is a company car leased in return for a reduction on the gross monthly salary. The car (the cost of the lease including VAT) is therefore financed via the employee's gross salary but through the employer. The company car is a benefit in kind that must be subject to tax and social security contributions.
In practice, the application of the benefit in kind of the Salary Plan on the employee's salary slip almost matches, with a difference of a few euros, the deduction of the rent (incl. VAT) of the vehicle from the net salary (excluding the Salary Plan).
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- Luxembourg