© - ATH all rights reserved - Edition 2024 46 EMPLOYER’S GUIDE 2024 THE PRINCIPLE OF BENEFITS IN KIND Benefits in kind include goods or services provided by the employer to employees for free (or for a contribution lower than their actual value) for their personal use. They are part of the salary added to cash payments. Benefits in kind, on which contributions are due, must be seen as distinct from goods or services provided to employees for business purposes which are deemed to be business expenses paid by the employer and exempt from contributions (refer Fact Sheet 23). Benefits in kind must be shown on the pay slip. VALUATION OF BENEFITS IN KIND In principle, benefits in kind are included in the base for social security contributions based on their actual value, which corresponds to the value of the saving for the beneficiary. As an exception, some benefits in kind may have a set value, such as the following : food, accommodation, vehicles and computing and communication equipment. The set amounts are determined by the URSSAF [social security agency]. Benefits in kind estimated on an actual basis can be lower than the set value subject to the production of evidence. The amount of the benefits determined on a set value constitutes a minimum valuation, in the absence of higher amounts provided for by the collective agreement. Where the collective agreement provides for a lower valuation, it cannot be used to determine the basis for contributions. FOOD BENEFITS IN KIND When the employer helps pay for its employees’ meals, aside from during business trips, this constitutes a benefit in kind whether the employer provides the meals for free or at a modest price (in a company restaurant for example). Food benefits in kind are valued by the URSSAF at € 5.35 per meal (value at as 1/1/2024). In Hotels-Cafes-Restaurants, the value of food benefits in kind is worked out in a specific way (€ 4.15 value at as 1/1/2024). Since 1 January 2020, food benefits in kind received by company officers can take the form of a fixed sum. BENEFITS IN KIND 22 What you need to know : When an employee uses a service provided by the employer for personal purposes, this is deemed a benefit in kind. There are various kinds of benefits in kind and they are considered to be part of the salary on which social security contributions are paid. The value of such benefits is based on the saving made by the beneficiary but there may be set values in certain cases.
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