With the first day of 2024, an extraordinary opportunity unfolds for entrepreneurs to enhance the work atmosphere and foster employee loyalty. The government’s plan to significantly increase the maximum amount of non-taxable benefits—averaging over 20%—provides crucial support for employers aiming to retain a talented workforce through increased overall income via monetary rewards.
From next year, employers will be able to reward each employee with an additional 565 euros, raising the total amount of non-taxable benefits per employee to a maximum of 3020 euros. This measure serves as a tangible incentive for employers to offer additional benefits to their employees, thereby encouraging work motivation and satisfaction in the workplace.
Substantial growth in the non-taxable amount of scholarships: There is a significant increase in the non-taxable amounts of student scholarships, representing a step in the right direction to counteract the outflow of talent abroad, especially at an early age.
Amount for workers’ meals in the construction sector: The construction sector highlights the need to increase non-taxable income for workers’ meals. The current limit of 1800 euros annually per worker is considered insufficient given the actual costs of meals, which include up to two meals a day.
Increase in per diems for official travel within the country: Per diems for official trip within the country record a 13% increase. The question of international per diems also remains open, as they impact the competitiveness of companies sending their employees to work abroad, where the cost of living is significantly higher.
Growth of total income for employees: Last year, the average gross salary nominally increased by 8.3%. It is interesting to note that the entire employee income, thanks to the growth of non-taxable payments by around 20%, according to Eurostat, increased by 13.4% compared to 2021.
Acceleration of wage growth for employees increased by 13.4% compared to 2021, thanks to the growth of non-taxable payments by around 20%, according to Eurostat, despite the challenges of a labour shortage, fierce competition in the EU labour market, unfavourable demographic trends, and partial acceleration of real productivity growth above the EU and CEE region averages.
The overall increase in the non-taxable portion of wages represents a crucial step towards improving working conditions and motivating employees, creating a sustainable platform for productivity growth and the long-term prosperity of entrepreneurs and workers.