Freigegeben in Finanzen

Salary optimization as an important tool for employee motivation

Company pension: Canada Life cooperates with Deutsche Gesellschaft für Entgeltoptimierung (DGEO) by Josef Bader

Donnerstag, 20 Juni 2019 14:50 geschrieben von 

Wemding – Canada Life was founded in 1847 in Hamilton, Ontario, Canada, making it the first life insurer in the Giant Country. Canada Life Assurance Europe plc has been operating in Germany since 2000. In new business, the company is one of the leading brokers for unit-linked products. The top insurer points out its great international experience and the know-how of the entire group of companies in order to be able to offer reliable insurance services in Germany. This makes „a strong partner in old-age provision and in risk protection“, says Canada Life. A focal point of the consulting activities of the German subsidiary in Cologne is the occupational pension scheme – in German „betriebliche Altersversorgung“ (bAV). Employers pay the pension contributions directly from the employee's gross salary. The taxes and social contributions thus saved flow directly into the pension plan of the employees. They thus acquire the right to an additional pension with little personal effort, which is invaluable in times of impending old-age poverty. With the help of company pensions, companies can distinguish themselves as attractive employers and gain important advantages in the search for employees and employee loyalty. In order to meet the different demands of employees, individual solutions are required.

An important instrument of employee motivation is the salary optimization via tax-free or flat rate taxed remuneration components. Employers can pay out part of the wages of their employees in a tax-optimized manner and thus save on wage and salary-related costs. At the same time, the net salary of employees who can meet more private consumption requirements increases. A calculation example shows the advantages of salary conversion: An employee who earns 2,500 euros gross monthly saves 100 euros for his occupational pension. This reduces his gross salary to 2,400 euros, thereby saving taxes and social security contributions of around 48 euros. So even though he pays 100 euros into the company's old-age insurance, his net salary is only reduced by around 52 euros. The remuneration optimization of tax-free and social security-free subsidies and benefits in kind includes the provision of smartphones and laptops for private purposes, vouchers, tickets for buses and trains, fuel vouchers, vouchers of all kinds, newspaper subscriptions, grants for kindergarten, special health insurance benefits and company pensions.

Canada Life works together with the Deutsche Gesellschaft für Entgeltoptimierung mbH (DGEO) for all these questions. The Wemding-based financial advisors accompany companies professionally in optimizing their salaries. In order to get everything right under tax and labor law measures, DGEO has an expert report prepared for each customer. For reasons of security and transparency, the competent tax office is also seeking a referral procedure. DGEO describes its further course of action as follows: „The savings are closely linked to the broad acceptance of the measures among the employees. Therefore, a detailed individual consultation of each employee is central to our work in the company. The administrative introduction is co-ordinated and settled together with the accounting department. Our ongoing personal support ensures that you are always up to date and well-informed – without significant administrative overhead.“ This advisory process has evidently also convinced Canada Life. In its „Service Overview 2019“ to the business field bAV, the German Association for salary optimization is strongly recommended. According to the Canadians, it specializes in „cost-effective compensation and payment solutions“. The DGEO wants to „produce the best possible legal certainty for all involved“ and achieves this through a legal opinion on the tax applicability of the fee components as well as an appraisal of the existing employment contracts. In addition, the company fetched a call for information from the tax office for its customers and worked out guidelines for the use of fee components in sales. Canada Life particularly praises its cooperation partner, because he attaches great importance to relieving the personnel departments of the advised companies and offers a comprehensive „back office service“.

CEO of DGEO is the occupational pensions expert Josef Bader. On the salary conversion in the context of the company pension, he says: „Once the employers are informed about this model and its implementation, this is received very positively. After all, this offers only advantages to both the management and the employees. However, the possibility of a salary optimization has so far arrived in only about one percent of all companies. So we still have a gigantic market ahead of us.“ Bader is also the founder and chairman of DG-Gruppe AG. In addition to the DGEO, this group of companies also includes the Deutsche Gesellschaft für betriebliche Altersversorgung AG (DGbAV), the DG-Gruppe Beratung und Betreuung GmbH, the Deutsche Gesellschaft für Vermögensentwicklung mbH (DGVE) and the DG-Akademie GmbH.

DG-Gruppe AG, founded in 2003, is a financial services holding company and has been listed on the Open Market of the Hamburg Stock Exchange since March 2015. Together with its subsidiaries, it offers holistic advice on all models of occupational retirement provision. In order to ensure the most targeted customer service possible, the DG Gruppe operates its own training facility. This DG Academy trains and certifies occupational pension consultants with a large network of partners. In order to rule out occupational pension losses when changing jobs, a DG clearing house was also set up. This clearing house ensures that if the employer changes, more favorable old contracts will continue and the employee will not suffer any financial losses.

Regarding the opportunities for optimizing remuneration, the DG Group states: „The market potential in this area is enormous and can be compared to the billions in the market for occupational pensions, whereby the competition density here is very low. Companies pay the DG Group four euros per employee per month for each managed pay component, with each employee integrating about three components in his salary. The revenue and earnings momentum in this new business is outstanding and promises continued profitable growth.“

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