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Flexible compensation is a compensation model in which part of your salary is used to purchase products or services, such as childcare vouchers, transport vouchers or health insurance. This part of your salary is not subject to income tax withholding, which allows you to pay less tax.
What are Flexible Remuneration childcare Tickets?
Flexible Remuneration Childcare Tickets are a benefit that your company offers you so that you can pay the nursery expenses of your children under 3 years old with tax advantages. The amount allocated to the tickets is deducted directly from your gross salary, which reduces the taxable base of your IRPF and, therefore, you pay less taxes.
Main Advantages
- Tax savings: By paying for nursery through flexible remuneration, you reduce the taxable base of your IRPF, so you pay less taxes.
- Ease of use: The tickets are accepted by a wide network of collaborating nurseries.
- No direct disbursement: The amount is deducted directly from your payroll, so you do not need to make payments on your own.
The tax savings depend on your personal situation, such as your gross salary and your marginal income tax rate. Normally, you can save between 20% and 45% of the amount allocated to tickets.
How can an employee request the childcare benefit through Factorial?
Employees can request the benefit directly in the Factorial platform under the Childcare Benefit section. After the first payment setup, the employee’s Benefits card will be charged monthly. The childcare category must be enabled on the card with a sufficient limit.
- Submit the request before the 25th of the previous month to start payments next month. Requests after the 25th will start the month after that.
The employee needs to provide the childcare center’s contact info, their child’s details, the payment amount, and how long the service will be used. That is done in the request flow in the My Benefits module in Factorial’s platform.
If the childcare center is not already affiliated, our partner Roiward will contact and affiliate the center using the provided details. Affiliation typically completes within a few days, depending on how quickly the center signs the agreement
FAQs
When does the benefit come into effect?
The benefit comes into effect once your company formalizes the contracting of the ticket service. The start dates usually coincide with the beginning of a month, but it depends on the agreement with the provider.
Where can I use childcare vouchers?
You can use them at any nursery or early childhood education centre that is part of the network of partner centres. Check the list of approved centres on the provider's platform.
Can I use vouchers to pay for extracurricular activities or camps?
No, childcare vouchers can only be used to pay for childcare or early childhood education expenses for children under 3 years old.
Can I modify the amount of daycare vouchers?
Yes, but this can usually only be done during the annual "modification windows" established by the company. Check with Human Resources for more details.
What do I do if I need to change daycare?
You should check whether the new daycare is included in the network of collaborating centres. If it is not, you could request the incorporation of the daycare from the ticket provider.
Can I request refunds if I have already paid for the daycare?
No, daycare vouchers do not usually allow refunds of payments already made. They can only be used for future payments at collaborating centres.
What happens if I leave the company?
If you leave the company, you may lose access to childcare vouchers. Check with Human Resources to find out what options are available to you in this case.
What should I do if my childcare payment is declined or my card doesn’t go through?
The checkout process will notify you of the reason for the decline. If it's due to insufficient funds, Factorial will notify your HR team to top up the Benefits account.
Will the full childcare payment amount be processed or are there fees deducted?
The full requested amount is processed to cover the childcare cost. Roiward deducts their fee separately when transferring funds to the childcare center — no fee is deducted from the employee’s payment.
How can I confirm that my childcare payment was successfully processed and paid to the childcare center?
You’ll receive a confirmation email from Factorial once payment is processed, and the transaction will be recorded in your Benefits account.
How does this childcare benefit impact my payroll and tax savings?
The childcare payment appears as a flexible remuneration item in payroll and is exempt from taxes (within limits), helping you save more compared to paying directly.
Can I change or cancel an existing childcare payment request? How do I make adjustments?
You can cancel or change the request by re-submitting a new request before the 25th of the month prior to the change. For urgent changes, contact support directly.
What is the tax exemption for Childcare?
There is no limit on the tax exemption for Childcare, except for the Basque Country where the limit is 1.000€ / year.