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.

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.

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.

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.

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.

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.

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)

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.

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.