• Human Resources & Corporate Learning

Salary Optimization

High social security contributions and tax burdens lead to increasingly unfavorable ratios of gross compensation and the net compensation effectively received by the employee.

As a certified consultant for corporate remuneration management, we improve this imbalance in favor of your employees and open up additional benefits for your company. 

Compensation management aims at the use of alternative compensation modules, which are explicitly provided for in tax legislation to reduce non-wage costs and increase net wages. 

Establishing selected compensation modules has the effect of improving your employees’ net pay without increasing personnel costs. The possibility of combining wage and salary increases with the establishment of these modules leads to a wide field of application. 

It is thus possible to use parts of the higher net wage for the company pension plan or to close other pension gaps. The combination with a lump-sum funded provident fund is an attractive option.

Application example:

An employee with tax class 1/0, subject to church tax, receives a gross monthly salary of EUR 2,500.00. The available net salary is EUR 1,631.08 per month. 

In the context of a salary increase, an active structuring of the remuneration takes place. For this purpose, remuneration is waived and topped up with remuneration modules. The salary increase is also granted in the form of remuneration modules. 

After optimization, the employee receives a monthly gross salary of EUR 2,529.00, of which EUR 2,302.00 is subject to tax and social security contributions. The employee’s net salary increases by EUR 144.47 to EUR 1,775.55 per month. Per year, this corresponds to an increase in the net salary of EUR 1,733.64! 

The additional expense for the employer is EUR 67.89 per month. 

The disadvantages from the lower social security contribution can be compensated from the higher gross salary. For example, the effect can be used to make contributions to old-age provision, for better cover in the event of illness or in the event of occupational disability.

We are certified consultants for corporate compensation management (AbE) and ensure professional and appropriate consulting and development of compensation concepts. In the concept phase, we calculate the effects of using the selected compensation modules for your employees and advise your employees on the effects and implications of the optimizations. 

Through a cooperation with an established system service provider, we provide your company with all services resulting from the selected compensation modules. Our cooperation with specialized attorneys for labor law and tax consultants familiar with the topic ensures the necessary legal security. In addition, we support your team in setting up the respective wage modules in your payroll and accounting.

We are makers.

We see ourselves as MAKERS, partners and project managers for our clients with the aim of pushing their future viability. With our high level of practical knowledge and our many years of international experience, we work worldwide.