The term Corporate Welfare refers to all contractual or one-sided initiatives by the employer aimed at increasing the well-being of the worker and his family through a different distribution of pay, which may consist either in refund benefits or in the direct provision of services, or in a mix of the two solutions.
The Welfare services offered are as follows:
- Health care
- Family and Education (Kindergarten – School – University – Summer and After School Camps – Books and Educational Material)
- Family and Home Care
- Local Public Transport
- Wellness, Culture and Health (Travel – Sports Activities – Cinema and Theatre – Baby Sitting – Wellness and Spa Centres)
- Supplementary Pension
- Purchase and shopping
The Welfare Program provides access to self-managed coverage from the Previdir Assistance Fund for predetermined benefits and guarantees. This will make it possible to have extra insurance coverage for:
- Clinical analysis
- Dental care
- Physiotherapy care
- Orthodontic care
- Contact lenses
- Lenses and eyeglasses
- Homeopathic medicines
- Specialist visits
Previdir provides corporate WELFARE plans for employee generality or categories of employees, to directors of companies that receive compensation comparable to those of ex-art employee work. 50, letter c-bis of the TUIR, and to their households
An essential requirement for the non-taxability of the sums allocated to a Welfare Plan is their allocation to the generality of the company population or to homogeneous categories of employees. It is therefore excluded from the purpose of the Welfare the creation of plans ad personam.
Therefore, any sum allocated to person is dependent income (see Circ. # 326/E/97, par. 2.2.6).
In response to a question raised by a hotel company, the Revenue Agency clarified that the subsidised tax regime provided for by art. 51 of the TUIR may also be applied to employees and interns as they still have income from employees (or assimilated).
The benefits – for business and employees – resulting from the introduction of a welfare plan can be substantially grouped into 3 macrocategories:
- Optimizing the tax benefit for the company, according to the current regulations and, in particular, by articles 51 and 100 TUIR
- Increased purchasing power for the employee: taxed and decontributed benefits but also discounts, promotions, conventions, goods and services with exclusive conditions
- Increased corporate well-being: improved business climate, decreased turnover and absenteeism, increased attraction and retention for the company.