Flexible salary

Paying holiday money only in May and having set holiday days doesn't suit a varied workforce anymore. With flexible pay, employees choose their own extra benefits that fit their life stage.

Cost-neutral for the employer, outside the work-related costs scheme (WKR).
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Optimize your investments

Increase the appreciation of the compensation package

Choose which salary components you offer flexibly
The most common components are holiday pay, extra statutory holidays, a bonus, or a 13th month salary.

Flexibilize salary

Adapt to life stages


Life can bring unexpected costs. Make salary and leave available when employees need it most.

Seamless integration with your payroll system


Automation through payroll software


Our solution easily syncs with existing HR and payroll software, streamlining processes, saving time, and reducing hassle. This lets you focus on what’s really important.

Our impact

20%

Employer savings on social costs

40%

Tax advantage for the employee

90%

Adoption of the compensation package

Additional features highlighted

Discover how you can offer extras cost-neutral, outside the work-related costs scheme

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Flexible Salary

What is Flexible Salary?
Through the Flexible Salary module, you give your employees more control over existing salary components, such as leave hours, holiday pay, a 13th month salary, or other additional benefits they receive. The various salary components are visualised on the Alleo platform, and employees can take actions related to these components. Here are some practical examples of what this means:

-Flexible Leave:
Employees can buy and sell additional leave hours. The source for purchasing leave is generally holiday pay or the 13th month salary, but it can also be gross salary. The rate at which employees buy leave hours is their gross hourly wage. When leave is sold, the employee receives the value as extra gross salary.

-Flexible Holiday Pay: Employees can choose to receive (part of) their holiday pay monthly or opt for a large one-time payment at a time when they need the extra funds.

-Flexible Pension: Employees receive a monthly gross pension contribution. On the Alleo platform, the employee decides whether this contribution is paid as gross salary or transferred by the employer to their Brand New Day personal pension savings account. Note: This is not a collective pension scheme but a third-pillar pension product. The employee does not pay income tax on the saved amount, as they receive it back through their personal annual tax return.
What is the impact of offering Flexible Salary on the WKR? (Work related costs scheme)
Offering the Flexible Salary module has no impact on the WKR. This makes it a very attractive option when the WKR discretionary margin is fully utilised and you, as an employer, still want to provide a valuable enhancement to existing benefits.

Since this module only adjusts existing salary components, it can be offered completely cost-neutrally without requiring new budgets.
What are the tax implications of offering flexible salary for employees and employers?
The flexible payment of holiday pay or a 13th month salary throughout the year has no tax implications. However, when an employee buys or sells leave hours, there can be tax implications. It is advisable to use holiday pay as the source for purchasing leave. Normally, because employees can make changes to their remuneration, the basis for calculating holiday pay is also adjusted.

However, this does not apply to the portion of the budget that is accumulated from holiday pay. Holiday pay is not subject to additional holiday pay calculations. Selling leave always results in a higher gross salary, which may affect any allowances (such as for healthcare or rent) that an employee receives.
Can Flexible Salary be offered in combination with Flexible Benefits?
Yes, absolutely! It does not matter whether the Flexible Benefits are offered through a net employer contribution or a gross/net salary exchange. On the Alleo platform, the sources (gross salary/holiday pay) are linked between the two modules, ensuring that an employee can never spend more than what they have available.
What are the benefits for my employees of using Flexible Salary through Alleo?
The benefit for employees is more control over existing salary components. Not every employee has the same needs at the same times; not everyone wants to take a holiday in the summer, and one year you might want to take more leave than the previous year.
How are flexible salary changes processed?
In a nutshell, the processing of flexible salary changes works as follows:

-On a monthly basis, the employer provides the necessary data for each employee through an export to the Alleo Portal.

-Alleo processes the provided export and makes the amounts and balances available to employees on the Alleo platform.

-The changes made by employees (payments / buying and selling leave) are processed monthly by the employer.
What data is required for each employee to facilitate the flexible salary module?
In addition to standard data such as name and email address, the following data is required:

Monthly Gross Salary / Holiday Pay / 13th Month Salary (depending on the source)

Flexible Leave:
-Gross Hourly Wage
-Balance of Additional Leave Hours
-Balance of Statutory Leave Hours (Optional)
Is it possible to allocate an IKB (individual choice budget) in Alleo?
An Individual Choice Budget (IKB) or Personal Choice Budget (PKB) is a flexible budget that gives your employees the opportunity to make their own choices regarding their employment conditions. This can be used for extra leave days, training, or a financial payout.

Within the Alleo environment, you can easily allocate an IKB/PKB. Our system is set up so that you as an organization are free to define a budget source (Holiday Pay, 13th Month Salary, or a combination) and link it to desired actions and spending goals.

For each action or spending goal, you can set your own rules. This includes the maximum amount of leave that can be bought or exchanging a certain amount within the discretionary space of the Work-Related Costs Scheme (WKR). Within Alleo, you can therefore easily launch different variations of the IKB/PKB, tailored to the needs of your organization and employees.
We currently offer a Cafeteria Model. Is it possible to automate this through Alleo?
In essence, Alleo takes the core principles of the Cafeteria Model—providing employees with a range of benefits to choose from—and enhances them with contemporary features and technology.
Does the Alleo platform work internationally?
The Flexible Benefits Module operates in all Eurozone countries. The range of benefits available on the marketplace is most extensive in the Netherlands and Germany, but we offer a basic selection across all benefit categories that covers Europe.

Additionally, we are continuously expanding this offering, and as an employer, you can choose to activate the reimbursement option.

This allows employees to make very local use of the budget you provide. The Flexible Salary Module is currently only available in the Netherlands.

Resources

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