Deduction methods for the benefits

There are various methods through which a benefit can be deducted. This is decided by the company or, sometimes, by the provider or other legal requirements applicable in your country. Please find below explanations as to how a benefit can be deducted:

Salary Sacrifice or Gross:  This means that the amount of the benefit you choose will be taken out of your salary before any taxes are applied.

*Via Salary Sacrifice you will need to sign a Salary Sacrifice Agreement where you need to agree with your salary being reduced in exchange for the benefits you selected. This could affect you if you need to get a mortgage or if your salary is important for other financial reasons.

Net: If a benefit is deducted from your net salary it means that the deduction for the benefit will be taken after all the necessary taxes have been applied to your salary.

Salary Sacrifice from Benefit allowance/Flex Allowance: If the company offers an amount of money that you can spend on benefits, it means you have a benefit allowance. If a benefit is deducted from Salary Sacrifice via Benefit Allowance this means that:

• If you have remaining allowance, your deductions will be taken from the allowance,
• If you do not have remaining allowance the deductions will be taken from your gross salary.

In order to check if your company offers a benefit allowance, you will need to go to the Cost Breakdown on the page.

Things to consider:

There is a difference between how a benefit is deducted and how a benefit is taxed. In order to find both pieces of information, you would need to check the More Info section present on each Benefit tile. Please refer to : (aici link catre More info article)