Because fringe benefits can be an ally for families
Conversation with Fabrizio Ruggiero, CEO of Edenred Italia: "We hope that the measure of the Aid bis decree becomes permanent, because the higher the exemption threshold for fringe benefits, the greater the support that these tools can offer"
“Fringe benefits can play the role of an important ally in dealing with an economic situation like the current one”. To say this, to Start Magazine , is Fabrizio Ruggiero , CEO of Edenred Italia , commenting on the decision of the Draghi government, through the Aid Bis decree designed to deal with the so-called expensive bills, to bring the exemption threshold for fringe benefits to 600 euros , benefits that are not provided to employees in the form of money, but as goods and services.
In short, in such an uncertain and volatile context, characterized by galloping inflation and the continuous increase in the prices of raw materials and energy, corporate welfare becomes increasingly important, even in the executive's action. After all, Ruggiero recalls, "it represents an immediate support capable of increasing the purchasing power of people, the well-being of families and at the same time supports the demand for goods and services, helping to produce positive effects spread to all subjects who are part of the ecosystem, including companies that have the ability to effectively integrate normal wages. " As for the future: "The legislation should continue in the direction undertaken, favoring a progressive enlargement of the basket of goods and services offered thanks to corporate welfare".
The past government within the Bis Aid Decree has raised the threshold within which fringe benefits are exempt from taxation to 600 euros, for the whole of 2022. Is this enough?
It is certainly a step forward in the path that leads to greater support for Italian families struggling with the high cost of living. The government provision recognizes the role of fringe benefits as an important ally in dealing with an economic situation like the current one, both for people and for companies. We hope this measure becomes permanent, because the higher the exemption threshold for fringe benefits, the more support these tools can offer.
What do you ask of the new executive? What are the most suitable measures to face a very difficult winter for workers and their families, between generalized inflation and increases in the cost of energy?
The path undertaken in recent years and deepened by the Bis Aid Decree goes in the right direction. Corporate welfare represents an immediate support capable of increasing people's purchasing power, the well-being of families and at the same time supports the demand for goods and services, helping to produce positive effects spread to all subjects who are part of the ecosystem, including companies that have the ability to effectively supplement normal wages. The fringe benefits also guarantee a wide usability, they are flexible tools able to respond to the different needs of daily life, and to better face the increase in costs. The legislation should continue in the direction undertaken, favoring a progressive enlargement of the basket of goods and services offered thanks to corporate welfare.
Can you explain why fringe benefits are a response to the generalized high cost of living?
Analyzing the data in our possession we see that the vouchers are mainly used for common expenses related to the daily needs of families. The most widespread rumors concern food, fuel and electronics spending. In particular, this last category of expenditure, with the emergence in recent years of new lifestyles and needs, has become increasingly important in family budgets. These are fields in which the increase in prices weighs on families, and the fringe benefits by their nature and how they are used represent a practical support for daily expenses, with a strong economic value, but also social. The increase in the exemption threshold only increases the contribution that can be made available to families, with positive effects that are added to those generated by the provisions of the Ukrainian Decree on the recognition of petrol vouchers up to 200 Euros for each employee.
Have any calculations been made about the generalized benefits over the entire economy of doubling the fringe benefit threshold?
Fringe benefits have positive repercussions on the entire system, as they help to support the demand for goods and services, especially in a period like this, characterized by a sharp decline in consumption due to rising prices. A recent research carried out by The European House – Ambrosetti shows that doubling the fringe threshold makes it possible to generate additional consumption for a figure ranging between 1.6 and 4.1 billion euros per year (estimate 2021). Numbers that confirm the fundamental role played by these tools in the current economic context, not only for workers and companies. A factor that can really offer concrete and immediate help to all the players in the field.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/perche-i-fringe-benefit-possono-essere-un-alleato-per-le-famiglie/ on Mon, 10 Oct 2022 08:46:25 +0000.