More and more employers are meeting people’s needs with benefits that fit life stages and personal interests. But in practice, it often remains a challenge: what truly fits? How to communicate all the options, and how do you ensure people actually use what’s on offer?

Precisely here, a Flexible Benefits Package makes the difference. Not 'one size fits all', but a personal choice menu with which every employee can assemble their own package, tailored to what is important right now. The result? A benefits package that is customized, impactful, and ready for the future.

In this article, we discuss:

• What are flexible benefits?

• Examples of flexible benefits

• Smart use of the WKR (Work Expenses Regulation)

• The importance of flexible benefits for employers & employees

• How do you organize flexible benefits effectively?

• Tax advantages and flexible benefits

• Conclusion: flexible benefits for the future

What are flexible benefits?

Flexible benefits are extras that employees can choose themselves. With a flexible benefits budget, you provide employees with a monthly or yearly budget that they can spend as they wish. Think of an individual choice budget (IKB), a Personal Choice Budget (PKB), or a cafeteria model. 

The core idea is freedom of choice. One person may pick a bike lease; another might choose mental health support or a few extra days off during a busy period. These choices improve work–life balance, engagement and satisfaction.

Examples of flexible benefits

• Extra annual leave for relaxation

• A vitality budget for sports or healthy food

• Lease bike scheme for sustainable mobility

• Cultural outings or workshops

• Coaching for mental and financial health

Smart use of the WKR (Work Expenses Regulation)

By smart use of the Work Expenses Regulation and the possibilities beyond it, you can assemble an attractive and distinctive package. The free space within the WKR will be 2% over the fiscal wage sum up to €400,000 and 1.18% over the excess above €400,000 in 2025.

Is the WKR full? No problem. There are also ways to reward your team outside the WKR. Think of options like a lease bike, buying/selling vacation days, or saving for extra pensions.

The importance of flexible benefits for your employees

• Choosing which benefits are relevant: employees can assemble their benefits package based on what is important to them.

• Higher satisfaction and engagement: flexible options lead to more engagement and a better work-life balance.

• Support in every life stage: whether it’s about vitality, extra free time, or mobility, flexible benefits respond to the changes in the lives of your employees.

• Fiscal and collective advantage: flexible benefits provide tax advantages for both the employer and the employee.

The importance of flexible benefits for employers

• New generations demand customization: flexibility and freedom of choice are essential for attracting and retaining talent.

• Increased satisfaction and retention: employees who have the freedom to personalize their benefits feel more engaged and satisfied.

• Higher adoption of benefits: flexibility increases the likelihood that employees actually make use of the offered benefits.

• More financial value without extra wage costs: with clever use of flexible benefits, you can offer employees a lot without it directly leading to higher wage costs.

How do you organize flexible benefits effectively?

• Linking with Payroll and HR Systems: ensure a seamless integration between your payroll and HR systems so that everything is easy and efficient to manage.

• Transparency and freedom of choice for employees: offer employees the flexibility to choose which benefits fit them best.

• A bundled platform approach: save time and benefit from the convenience of an extensive range of partners, so there's something for everyone.

• Utilizing tax advantages via the WKR: make optimal use of tax advantages by cleverly allocating gross wages for allowances.

Tax advantages and flexible benefits

Flexible benefits make it easier to optimise WKR and other tax options. With the right setup, employees can fund perks in tax-efficient ways, benefiting both the organisation and the individual.

Flexible benefits for now, and for the future

Flexible benefits help you build a diverse, tailored package that people actually use. That means higher satisfaction and engagement for employees, and a future-ready offer for employers. Curious about more practical examples for a flexible benefits package? Read the information guide: flexible benefits.