Introduction: Benefits in Kind, a Major Payroll Issue
Benefits in kind constitute a full element of remuneration. They correspond to the provision, free of charge or at a preferential rate, of a good or service by the employer for the benefit of the employee for private use. Proper evaluation is crucial as it directly impacts the base for social contributions, the calculation of withholding tax, and ultimately, the net pay of the employee.
The BOSS (Bulletin Officiel de la Sécurité Sociale) dedicates an entire section to benefits in kind and specifies the evaluation methods for each category: food, housing, vehicle, and NTIC (nouvelles technologies de l’information et de la communication). The scales are updated annually. This guide details the applicable rules for 2025 with numeric examples for each situation.
The Food Benefit in Kind in 2025
The Meal Allowance: €5.45 per Meal in 2025
When the employer provides a meal free of charge to the employee, the benefit in kind is evaluated lump-sum at €5.45 per meal in 2025. This amount is adjusted each year based on price changes.
The lump-sum evaluation applies in the following situations:
- A meal provided free of charge to the employee (free company cafeteria, meals fully covered by the employer)
- A meal provided during business trips where the employee is not in a travel situation entitled to reimbursement of expenses
Example: An employee benefiting from the company cafeteria for free for 20 days in the month will account for a benefit in kind of 5.45 x 20 = €109 per month, included in the gross and deducted from the net.
The Company Cafeteria with Employee Contribution
When the employee contributes to the meal cost, the benefit in kind equals the difference between the lump-sum amount (€5.45) and the employee’s contribution, provided that the contribution is less than 50% of the lump sum. If the employee’s contribution is equal to or exceeds 50% of the lump sum (i.e., €2.725 in 2025), there is no benefit in kind to report.
Example: If the employee pays €2.00 per meal, the benefit in kind is 5.45 – 2.00 = €3.45 per meal. Over 20 days: 3.45 x 20 = €69.
If the employee pays €3.00 per meal (exceeding €2.725), no benefit in kind will be reported.
Meal Vouchers: Employers’ Exemption of €7.26 Maximum
Meal vouchers have specific rules. The employer’s contribution is exempt from social contributions provided two cumulative limits are respected:
- The employer’s contribution must not exceed 60% of the nominal value of the voucher.
- The employer’s contribution must not exceed €7.26 per voucher in 2025.
Example 1: Voucher worth €11.00, employer’s contribution of €6.60 (60%). The contribution is below €7.26 and represents 60% of the face value: full exemption.
Example 2: Voucher worth €13.00, employer’s contribution of €7.80 (60%). The contribution exceeds €7.26: the excess of 7.80 – 7.26 = €0.54 per voucher is subject to contributions.
The Housing Benefit in Kind in 2025
The employer who provides free housing to an employee must evaluate this benefit in kind either at lump-sum or based on the real cadastral rental value. The choice between the two methods lies with the employer unless otherwise stated by collective agreements.
The Lump-Sum Evaluation: Scale with 8 Ranges
The BOSS provides a lump-sum scale based on the employee’s gross monthly salary and the number of main rooms in the residence. This scale includes 8 salary ranges. For 2025, the values are as follows (indicative for one room):
- Range 1 (salary < €1,932.00): €77.30 for 1 room
- Range 2 (€1,932.00 to €2,318.39): €90.20 for 1 room
- Range 3 (€2,318.40 to €2,704.79): €103.00 for 1 room
- Range 4 (€2,704.80 to €3,477.59): €115.80 for 1 room
- Range 5 (€3,477.60 to €4,250.39): €141.80 for 1 room
- Range 6 (€4,250.40 to €5,023.19): €167.50 for 1 room
- Range 7 (€5,023.20 to €5,795.99): €193.40 for 1 room
- Range 8 (≥ €5,796.00): €219.30 for 1 room
For each additional room, the lump-sum increases according to the BOSS scale. The benefit includes, by default, accessory advantages (water, gas, electricity, heating, garage) if paid by the employer.
The Real Evaluation
The real evaluation is based on the real cadastral rental value or real rental value of the accommodation. It includes the rent the employee would have had to pay, increased by additional charges covered by the employer (water, heating, electricity, etc.).
This method is often more advantageous for the employer when the housing is located in a low rental value area and more advantageous for the employee in tight markets.
The Vehicle Benefit in Kind in 2025
The evaluation of the vehicle benefit in kind has been updated as of February 1, 2025. The lump-sums have been revised and specific provisions apply to electric vehicles.
Vehicle Purchased by the Employer
When the employer owns the vehicle, the lump-sum evaluation depends on the vehicle’s age and fuel reimbursement:
- Vehicle 5 years or less, without fuel: 15% of the purchase price including tax per year
- Vehicle 5 years or less, with fuel: 20% of the purchase price including tax per year
- Vehicle over 5 years, without fuel: 10% of the purchase price including tax per year
- Vehicle over 5 years, with fuel: 15% of the purchase price including tax per year
Example: A vehicle purchased for €30,000 including tax, made available for 3 years, with personal fuel coverage. The annual benefit is €30,000 x 20% = €6,000 per year, or €500 per month.
Rental Vehicle (or Leasing)
When the vehicle is rented (LLD or LOA), the lump-sums are calculated based on the annual rental cost (rent + insurance + maintenance):
- Without fuel: 50% of the annual rental cost
- With fuel: 67% of the annual rental cost
Example: A vehicle under LLD with a total annual cost of €8,400 (rent + insurance + maintenance), without fuel coverage. The annual benefit is €8,400 x 50% = €4,200 per year, or €350 per month.
Electric Vehicle: 70% Deduction Capped
To encourage the energy transition, 100% electric vehicles benefit from a 70% deduction on the benefit in kind, capped at €4,582 per year in 2025.
Example: An electric vehicle purchased for €45,000 including tax, less than 5 years old, without fuel. The gross benefit is €45,000 x 15% = €6,750. After a 70% deduction: €6,750 x 30% = €2,025. This amount, being lower than the cap of €4,582, is retained as the benefit in kind of €2,025 per year, or €168.75 per month.
If the 70% deduction were to result in a residual benefit exceeding €4,582, then the cap of €4,582 would apply. In practice, this concerns very high-end electric vehicles.
Real Vehicle Evaluation
The employer can choose the real evaluation method, considering:
- The annual depreciation of the vehicle (or the rental charges)
- Insurance
- Maintenance costs
- Personal fuel if applicable
All this is prorated based on the private mileage compared to the total mileage. This method requires keeping a precise logbook, making it more burdensome to manage.
The NTIC (New Technologies) Benefit in Kind
When the employer provides NTIC tools (laptop, tablet, mobile phone) for mixed professional and private use, a benefit in kind must be evaluated.
Lump-Sum Evaluation: 10% of the Purchase Cost
The BOSS provides for a lump-sum evaluation at 10% of the public purchase price including tax of the tool provided. This lump sum covers the private use of the tool.
Example: A laptop purchased for €1,200 including tax is provided to an employee. The annual benefit in kind is €1,200 x 10% = €120 per year, or €10 per month.
If the employer also covers the employee’s home internet subscription, the cost of this subscription is added to the evaluation.
Exemption Cases
Reasonable use of professional tools for private purposes may be tolerated without constituting a benefit in kind, provided that this use remains marginal and is outlined in the company’s IT charter. However, when the tool is explicitly made available for private use (for example, a personal mobile phone provided by the employer), the benefit must be evaluated.
Impact of Benefits in Kind on the Payslip
On the payslip, the benefit in kind undergoes a double treatment:
- As an addition to the gross: the benefit in kind is included in gross remuneration for the calculation of social contributions.
- As a deduction from the net: the benefit in kind is deducted from the net pay because it has already been received in kind by the employee.
This mechanism ensures that contributions are calculated on total remuneration (monetary + in kind) while avoiding double payment to the employee.
Complete Example on the Payslip:
- Basic salary: €3,000
- Vehicle benefit in kind: + €500
- Total gross: €3,500 (base for contributions)
- Employee contributions (22%): – €770
- Net before deduction for the benefit in kind: €2,730
- Deduction for the benefit in kind: – €500
- Net payable before withholding tax: €2,230
URSSAF Controls on Benefits in Kind
Benefits in kind are one of the most scrutinized items by URSSAF. The main reasons for adjustment are:
- Total lack of evaluation of an existing benefit in kind (company vehicle used privately without a benefit in kind on the payslip)
- Undervaluation of the benefit (using the lump sum when the real value would be more favorable to URSSAF, or the opposite)
- Failure to comply with the exemption conditions for meal vouchers (employer contribution exceeding 60% or €7.26)
- Lack of supporting documents in case of real evaluation (no logbook for the vehicle, no invoices for housing)
To secure your practices, it is recommended to formalize the company’s policy on benefits in kind in writing and keep all supporting documents.
Summary Table of Scales for 2025
- Meals: €5.45 per meal (lump-sum)
- Meal vouchers: maximum employer exemption of €7.26 (max 60% of nominal value)
- Housing: scale with 8 ranges based on remuneration and number of rooms
- Purchased vehicle ≤ 5 years: 15% (without fuel) / 20% (with fuel)
- Purchased vehicle > 5 years: 10% (without fuel) / 15% (with fuel)
- Rental vehicle: 50% (without fuel) / 67% (with fuel)
- Electric vehicle: 70% deduction, capped at €4,582/year
- NTIC: 10% of public purchase price including tax
FAQ: Your Questions on Benefits in Kind in 2025
Can the employer freely choose between lump-sum evaluation and real evaluation?
Yes, the employer can choose the evaluation method (lump-sum or real) for each benefit in kind, unless otherwise provided by collective agreements. This choice can differ from one benefit to another (e.g., lump-sum for the vehicle and real for housing). However, the choice must be consistent for all employees receiving the same benefit, to avoid discrimination. The choice can be revised each year during the annual regularization.
How to evaluate the vehicle benefit in kind when the employee returns the vehicle during their vacation?
If the employee returns the vehicle during their vacation or absence, the benefit in kind is prorated based on the actual duration of availability. For example, if the employee returns the vehicle during 2 weeks of vacation, the monthly benefit is reduced accordingly. However, if the vehicle remains available to the employee even during vacation (which is the most common case), the benefit is owed for the full month.
Does the electric vehicle deduction apply to plug-in hybrid vehicles?
No, the 70% deduction capped at €4,582 per year applies exclusively to 100% electric vehicles. Plug-in hybrid vehicles do not benefit from this deduction and are evaluated according to standard thermal vehicle scales. This distinction is clearly specified by the BOSS and has been confirmed during the updates on February 1, 2025.
Are meal vouchers considered a benefit in kind?
Meal vouchers do not strictly constitute a benefit in kind in the sense of the BOSS. They fall under a specific exemption regime. The employer’s contribution is exempt from social contributions if it meets two cumulative conditions: not exceeding 60% of the nominal value of the voucher and not exceeding €7.26 per voucher in 2025. The excess fraction is reintegrated into the basis for contributions.
What risks does the employer face in the absence of evaluation of a benefit in kind?
The absence of evaluation of a benefit in kind constitutes a breach that may lead to URSSAF adjustment. The inspector will recalculate the benefit according to the method most favorable to URSSAF (usually the lump-sum) over the 3 years being audited, applying interest penalties (5% in case of good faith, 25% in case of bad faith). The adjustment will involve both unpaid employer and employee contributions.