The evolution of the nation’s social and demographic structure, the emergence of new social risks, and the consequences of the Covid-19 pandemic have profoundly reshaped the labor market and altered longstanding paradigms, introducing new variables, until now unknown or little understood, into workplace relations within companies.
In this context, Corporate Welfare has emerged in recent years as a structured and more integrated approach. It represents a form of private intervention capable of delivering positive outcomes both for employees within the company and for the broader socio-economic environment in which the company operates.
In recent years, there has been a marked increase in corporate welfare policies. These policies encompass a range of activities, benefits, and incentives provided by the company to its employees with the aim of improving their well-being, both within the workplace and in their personal lives. This growing focus on employee well-being reflects a significant shift, employees are no longer viewed merely as a labor factor but rather as valuable resources capable of generating sustained and long-term value. Therefore, in other words as employees deserving of greater care and attention.
Corporate Welfare consists in providing employees and executives with a set of benefits and services aimed at them and their families, which are especially advantageous both for the company offering them and for the beneficiaries, particularly from a tax perspective.
In addition to the tax benefits for the company, corporate welfare also helps improve employees’ purchasing power and supports their personal and family well-being.
Corporate welfare programs are usually designed for all employees, not just individuals.
Welfare plans are implemented through either a union agreement (if company level union representatives, RSA, or unitary workplace union structures, RSU, are present) or, in their absence, through a company regulation. This regulation outlines the goods, services, or opportunities made available to employees in various forms, without being paid out directly as cash.
According to recent statistics based on representative panels of companies, the most requested welfare services by employees include:
- Meal vouchers/restaurant tickets, with the new exemption limit of €8.00 per day for digital vouchers)
- Medical assistance
- Reimbursement of educational and school expenses
- Contributions to supplementary pensions
- Elderly care services;
- Travel and general wellness services.
The advantages of implementing a corporate welfare system are clear for everyone involved. For employees, it means they receive not only their regular salary but also extra support that improves their well-being and increases their purchasing power through non cash benefits. For companies, it helps improve employee loyalty and retention, while also offering significant tax and social contribution savings by reducing the cost of taxes and contributions on labor costs to zero.
Specifically, Articles 51 and 100 of the Italian Consolidated Income Tax Act (T.U.I.R.) Specifically, Article 51 outlines an exemption for determining taxable income from employment, as well as a special tax-deductible regime for costs related to corporate welfare plans.
Although our country is still behind compared to other European countries, corporate welfare in Italy is on track to soon become the center of compensation policies in Italian companies. On one hand, it represents a key opportunity for growth across the entire business environment, where the role of Human Resources is being redefined as the driving force behind companies increased competitiveness in international markets.
