Preamble

The employee is paid in principle in cash. However, it is accepted that the employee may also be paid in kind. As such, the employee, the employee will be paid with benefits in goods or services granted by the employer for his or her personal use.

1. Definition of benefit in kind

 The benefit in kind consists of the supply or provision of a good or service, allowing the employee to save on costs that he or she would normally have had to bear.

Benefits in kind are an element of remuneration that must be included in the basis of social security contributions. The value of the benefits in kind must appear on the employee’s payslip.

Benefits in kind are taken into account in the basis of assessment for social security contributions when they are received in the course of work.

Benefits in kind may be assessed on a flat-rate basis or on the basis of their actual value.

2.The different forms of benefits in kind

2.1. Meal benefits in kind

The benefit in kind consists of the supply or provision of a good or service, allowing the employee to save on costs that he or she would normally have had to bear.

Benefits in kind are an element of remuneration that must be included in the basis of social security contributions. The value of the benefits in kind must appear on the employee’s payslip.

Benefits in kind are taken into account in the basis of assessment for social security contributions when they are received in the course of work.

Benefits in kind may be assessed on a flat-rate basis or on the basis of their actual value.

2.2. Housing benefits in kind

When the employer provides accommodation free of charge to its employee or when it gives rise to a small participation by the latter, a benefit in kind is constituted. This benefit in kind must be included in the basis of social contributions.

The employer can opt either for a flat-rate assessment of the benefit in kind (according to the criteria determined by the tax authorities) or for an assessment on the actual expenses, corresponding to the rental value used to establish the housing tax.

2.3. Benefits in kind for vehicles

The private use of a vehicle made available to the employee on a permanent basis constitutes a benefit in kind. The provision is permanent when the employee is not required to return the vehicle outside of working periods or during holidays.

The valuation of this benefit in kind can be done either on the basis of a lump sum (according to the criteria determined by the tax authorities) or on the basis of the expenses actually incurred by your employee (which include insurance, maintenance costs and the depreciation of the purchase value of the vehicle or the overall annual cost of the lease).

Regarding the flat-rate valuation, the rules for calculating the vehicle benefit in kind have changed for vehicles allocated from 1 February 2025: the flat-rate regime has been increased.

So what rule should be applied? The date of availability of the vehicle is decisive:

• Before 1 February 2025: old regime.
• From 1 February 2025: new rules, even if the vehicle was purchased or used before.

With regard to 100% electric vehicles, those made available between 1 January 2020 and 31 January 2026, the valuation of the benefit in kind, whether calculated on an actual-cost basis or a flat-rate basis, is determined after applying a 50% allowance, capped at €2,026.30 per year as of 1 January 2026.

For 100% electric vehicles made available between 1 February 2025 and 31 December 2027 that meet the requirement of a minimum eco-score, two allowances apply to the amount of the valuation.

• When the valuation is based on actual costs, the benefit is calculated after applying a 50% allowance, capped at €2,026.30 per year (value as of 1 January 2026).
• When the valuation is based on a flat-rate amount, the benefit is calculated after applying a 70% allowance, capped at €4,641.60 per year (value as of 1 January 2026).

Electricity costs paid by the employer are not taken into account.

With regard to the provision of a charging station for hybrid and electric vehicles at the employee’s workplace, its use for personal purposes does not give rise to any benefit in kind until 31 December 2027.

When the charging station is installed outside the workplace, the employer may cover all or part of the costs of purchase, rental, installation and use. This coverage is included in the contribution bases.

2.4. Benefits in kind in the form of the provision of new information and communication technologies

Computer equipment, mobile phones, internet packages, etc. are considered benefits in kind when they are made available to the employee on a permanent basis as part of his or her professional and personal activity. It is therefore a mixed use of the equipment, both professional and private.

The assessment of the benefit in kind may be determined on a flat-rate basis or on the basis of actual expenditure.

3. Benefits in kind in the form of tariff reductions 

Benefits in kind granted to employees resulting from the supply of products and services produced by the company on preferential terms do not give rise to liability to social security contributions provided that their price reductions do not exceed 30% of the public selling price.

The price is assessed on the basis of the normal public selling price, all taxes included, charged by the employer to a non-salaried consumer. However, this is the lowest selling price in the year, for example, in the event of a sale, so it is the sale price that must be taken into account.

Where the supply is free of charge or where the discount exceeds 30% of the normal selling price, the entire benefit in kind must be reintegrated into the basis of assessment.

For products that can no longer be sold, tariff reductions are allowed within the limit of 50% of the normal public selling price (including VAT) provided that this reduction respects the limit of the threshold for selling at a loss.

***

This sheet contains summarized information. Please contact us for advice tailored to your situation. We cannot be held responsible for misinterpretation.

Contact

Claire APPELGHEM

HR Director/Head of Employment Law

Claire.appelghem@groupe-aplitec.com

01 40 40 38 38