How to Assess Benefits in Kind in Payroll in 2025: A Complete Guide

Introduction: Benefits in Kind, a Major Payroll Issue

Benefits in kind are an integral part of employee remuneration. They constitute the free or preferential provision of goods or services by the employer for the employee’s private use. Proper assessment is crucial as it directly impacts the basis for social contributions, the calculation of withholding taxes, and ultimately, the net pay of the employee.

The BOSS (Official Bulletin of Social Security) dedicates an entire section to benefits in kind and specifies the assessment methods for each category: food, housing, vehicles, and IT equipment. The scales are updated each year. This guide details the applicable rules for 2025, including numerical examples for each situation.

Food Benefits in Kind in 2025

Meal Allowance: €5.45 per Meal in 2025

When the employer provides a meal to the employee free of charge, the benefit in kind is provisionally evaluated at €5.45 per meal in 2025. This amount is revalued each year based on price changes.

The provisional assessment applies in the following situations:

Meals provided free of charge to the employee (free company cafeteria, meals fully covered by the employer)
Meals provided during business trips when the employee is not on a mission that qualifies for expense reimbursement

Example: An employee who benefits from the company cafeteria for free for 20 days in a month will have a benefit in kind assessed at 5.45 x 20 = €109 per month, included in the gross salary and deducted from the net pay.

Company Cafeteria with Employee Contribution

When the employee contributes to the meal cost, the benefit in kind equals the difference between the flat rate (€5.45) and the employee’s contribution, provided the contribution is less than 50% of the flat rate. If the employee’s contribution is equal to or greater than 50% of the flat rate (i.e., €2.725 in 2025), there is no benefit in kind to recognize.

Example: If the employee pays €2.00 per meal, the benefit in kind is 5.45 – 2.00 = €3.45 per meal. For 20 days: 3.45 x 20 = €69.

If the employee pays €3.00 per meal (more than €2.725), there is no benefit in kind to recognize.

Restaurant Vouchers: Employer Contribution Exemption of €7.26 Maximum

Restaurant vouchers are subject to specific rules. The employer’s contribution is exempt from social contributions if it meets two cumulative conditions:

The employer’s contribution must not exceed 60% of the face value of the voucher
The employer’s contribution must not exceed €7.26 per voucher in 2025

Example 1: Voucher of €11.00, employer’s contribution of €6.60 (60%). The contribution is below €7.26 and represents 60% of the face value: total exemption.

Example 2: Voucher of €13.00, employer’s contribution of €7.80 (60%). The contribution exceeds €7.26: the excess portion of 7.80 – 7.26 = €0.54 per voucher is subject to contributions.

Housing Benefits in Kind in 2025

Employers providing housing to an employee must assess this benefit in kind either at a flat rate or based on the actual rental value. The choice between the two methods rests with the employer, unless otherwise stipulated by collective agreements.

Flat Rate Assessment: Scale with 8 Tiers

BOSS provides a flat rate schedule based on the monthly gross remuneration of the employee and the number of main rooms in the housing. This schedule consists of 8 remuneration tiers. For 2025, the values are as follows (indicative for one room):

Tier 1 (remuneration < €1,932.00): €77.30 for 1 room
Tier 2 (€1,932.00 to €2,318.39): €90.20 for 1 room
Tier 3 (€2,318.40 to €2,704.79): €103.00 for 1 room
Tier 4 (€2,704.80 to €3,477.59): €115.80 for 1 room
Tier 5 (€3,477.60 to €4,250.39): €141.80 for 1 room
Tier 6 (€4,250.40 to €5,023.19): €167.50 for 1 room
Tier 7 (€5,023.20 to €5,795.99): €193.40 for 1 room
Tier 8 (≥ €5,796.00): €219.30 for 1 room

For each additional room, the flat rate is increased according to the BOSS schedule. The benefit automatically includes ancillary benefits (water, gas, electricity, heating, garage) if the employer covers these costs.

Actual Value Assessment

The actual value assessment is based on the cadastral rental value or actual rental value of the housing. It includes the rent that the employee would have to pay, plus the ancillary costs covered by the employer (water, heating, electricity, etc.).

This method is often more advantageous for the employer when housing is located in a low-rent area, and more advantageous for the employee in high-demand areas.

Vehicle Benefits in Kind in 2025

The assessment of vehicle benefits in kind underwent an update on February 1, 2025. The flat rates have been revised, and specific provisions apply to electric vehicles.

Vehicle Purchased by the Employer

When the employer owns the vehicle, the flat rate assessment depends on the vehicle’s age and the coverage of fuel costs:

Vehicle 5 years old or less, without fuel: 15% of the total purchase cost (including tax) per year
Vehicle 5 years old or less, with fuel: 20% of the total purchase cost (including tax) per year
Vehicle older than 5 years, without fuel: 10% of the total purchase cost (including tax) per year
Vehicle older than 5 years, with fuel: 15% of the total purchase cost (including tax) per year

Example: A vehicle bought 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.

Leased Vehicle

When the vehicle is leased (Long Term Lease or Lease with Option to Purchase), the flat rates are calculated based on the annual leasing cost (rents + insurance + maintenance):

Without fuel: 50% of the annual leasing cost
With fuel: 67% of the annual leasing cost

Example: A vehicle leased with a total annual cost of €8,400 (rents + 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 below the cap of €4,582, the recognized benefit in kind is €2,025 per year, or €168.75 per month.

If the 70% deduction results in a residual benefit exceeding €4,582, the cap of €4,582 would apply. In practice, this concerns very high-end electric vehicles.

Actual Value Assessment of Vehicle

The employer can opt for the actual assessment, considering:

Annual depreciation of the vehicle (or leasing payments)
Insurance
Maintenance costs
Personal fuel costs, if applicable

All of this is prorated based on private mileage relative to total mileage. This method requires keeping a precise logbook, making it more burdensome in terms of management.

IT Equipment Benefits in Kind (NTIC)

When the employer provides IT tools (laptop, tablet, mobile phone) for mixed professional and private use, a benefit in kind must be assessed.

Flat Rate Assessment: 10% of Purchase Cost

BOSS provides for a flat rate assessment of 10% of the public total purchase cost of the tool provided. This flat rate 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 internet subscription at the employee’s home, the cost of this subscription is added to the assessment.

Exemption Cases

Reasonable use of professional tools for private purposes may be tolerated without constituting a benefit in kind, provided this use remains marginal and is stipulated in the company’s IT charter. However, when the tool is explicitly provided for private use (for example, a personal mobile phone provided by the employer), the benefit must be assessed.

Impact of Benefits in Kind on Payslips

On the payslip, the benefit in kind undergoes dual treatment:

As an addition to gross salary: the benefit in kind is included in gross remuneration for the calculation of social contributions
As a deduction from net pay: the benefit in kind is deducted from the net payable since 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 payments to the employee.

Complete Example on Payslip:

Basic salary: €3,000
Vehicle benefit in kind: +€500
Total gross: €3,500 (contribution base)
Employee contributions (22%): –€770
Net before benefit in kind deduction: €2,730
Benefit in kind deduction: –€500
Net payable before withholdings: €2,230

URSSAF Controls on Benefits in Kind

Benefits in kind are among the most scrutinized areas by URSSAF. The main reasons for adjustments are:

Total absence of assessment for an existing benefit in kind (company vehicle used privately without a benefit in kind on the payslip)
Underassessment of the benefit (using the flat rate when actual costs would be more favorable to URSSAF, or vice versa)
Non-compliance with exemption conditions for restaurant vouchers (employer contribution exceeding 60% or €7.26)
Absence of supporting documents in cases of actual assessment (no logbook for the vehicle, no invoices for housing)

To secure your practices, it is advisable to formalize the company’s policy regarding benefits in kind in writing and retain all supporting documents.

Summary Table of Scales for 2025

Meals: €5.45 per meal (flat rate)
Restaurant vouchers: maximum employer contribution exemption €7.26 (max 60% of face value)
Housing: scale with 8 tiers 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)
Leased vehicle: 50% (without fuel) / 67% (with fuel)
Electric vehicle: 70% deduction, capped at €4,582/year
IT equipment: 10% of total purchase cost

FAQ: Your Questions on Benefits in Kind in 2025

Can the employer freely choose between flat rate assessment and actual assessment?

Yes, the employer can choose the assessment method (flat rate or actual) for each benefit in kind, unless otherwise provided by collective agreements. This choice can differ from one benefit to another (for example, flat for the vehicle and actual for housing). However, the choice must be consistent for all employees benefiting from the same advantage to avoid any discrimination. The choice can be revised annually during the annual regularization.

How to assess the vehicle benefit in kind if the employee returns the vehicle during their vacation?

If the employee returns the vehicle during their vacation or absence periods, 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 proportionately. However, if the vehicle remains available to the employee even during their vacation (which is the most common case), the benefit is due for the entire month.

Does the deduction for electric vehicles 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 assessed according to the conventional scales for thermal vehicles. This distinction is clearly outlined by the BOSS and was confirmed during the updates on February 1, 2025.

Are restaurant vouchers considered a benefit in kind?

Restaurant vouchers are not strictly classified as a benefit in kind under BOSS. They fall under a specific exemption regime. The employer’s contribution is exempted from social contributions if it meets the two cumulative conditions: not exceeding 60% of the face value of the voucher and not exceeding €7.26 per voucher in 2025. The excess portion is re-integrated into the contribution base.

What risk does the employer face if they do not assess a benefit in kind?

The failure to assess a benefit in kind constitutes a violation subject to URSSAF re-adjustment. The collection inspector will recalculate the benefit according to the most favorable method for URSSAF (usually the flat rate) over the 3 years audited, with late payment penalties applied (5% in cases of good faith, 25% in cases of bad faith). The adjustment affects both the undeclared employer and employee contributions.