Introduction: Benefits in Kind, a Major Issue in Payroll
Benefits in kind represent a significant element of remuneration. They refer to the free or preferential provision of goods or services by the employer for the employee’s private use. Accurately assessing these benefits is crucial as it directly impacts the base for social security contributions, the calculation of withholding tax, and ultimately, the net salary payable to the employee.
The BOSS (Official Bulletin of Social Security) dedicates an entire section to benefits in kind and specifies the evaluation methods for each category: food, housing, vehicles, and NTIC (new technologies). The scales are updated each year. This guide details the applicable rules for 2026 with numerical examples for each situation.
Food Benefit (2026)
Meal Allowance: €5.50 per meal (as of January 1, 2026)
When the employer provides a meal free of charge to the employee, the benefit in kind is evaluated at a flat rate of €5.50 per meal (value as of January 1, 2026). This amount is updated each year based on price changes.
The flat-rate evaluation applies in the following situations:
- Free meals provided to the employee (free company canteen, meals fully covered by the employer)
- Meals provided during business trips where the employee is not in a situation that entitles them to mission expenses
Example: An employee who uses the free company canteen for 20 days in a month will have a benefit in kind calculated at 5.50 x 20 = €110 per month, included in gross pay and deducted from net pay.
Company Canteen with Employee Contribution
When the employee contributes to the meal cost, the benefit in kind equals the difference between the flat rate amount (€5.50) and the employee’s contribution, provided that this 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., €2.75), there is no benefit in kind to be recorded.
Example: If the employee pays €2.00 per meal, the benefit in kind is 5.50 – 2.00 = €3.50 per meal. Over 20 days: 3.50 x 20 = €70.
If the employee pays €3.00 per meal (more than €2.75), there is no benefit in kind to record.
Meal Vouchers: Employer Exemption of a Maximum of €7.32 (2026)
Meal vouchers are subject to specific rules. The employer’s contribution is exempt from social security contributions provided that two cumulative limits are respected:
- The employer’s contribution must not exceed 60% of the face value of the voucher
- The employer’s contribution must not exceed €7.32 per voucher (as of January 1, 2026)
Example 1: Face value of the voucher is €11.00, employer contribution is €6.60 (60%). The contribution is below €7.32 and represents 60% of the face value: total exemption.
Example 2: Face value of the voucher is €13.00, employer contribution is €7.80 (60%). The contribution exceeds €7.32: the excess amount of 7.80 – 7.32 = €0.48 per voucher is subject to contributions.
Housing Benefit
⚠️ The amounts of the flat-rate housing scale below are revised on January 1 of each year: check the values in force on the BOSS for the year concerned.
Employers providing free housing to an employee must evaluate this benefit in kind either by flat rate or based on the real rental value. The choice between the two methods belongs to the employer, unless otherwise agreed by collective provisions.
Flat-Rate Evaluation: 8-Segment Scale
The BOSS provides a flat-rate scale based on the monthly gross salary of the employee and the number of main rooms in the accommodation. This scale comprises 8 salary segments. For 2026, the values are as follows (indicative for one room):
- Segment 1 (salary < €1,932.00): €77.30 for 1 room
- Segment 2 (€1,932.00 to €2,318.39): €90.20 for 1 room
- Segment 3 (€2,318.40 to €2,704.79): €103.00 for 1 room
- Segment 4 (€2,704.80 to €3,477.59): €115.80 for 1 room
- Segment 5 (€3,477.60 to €4,250.39): €141.80 for 1 room
- Segment 6 (€4,250.40 to €5,023.19): €167.50 for 1 room
- Segment 7 (€5,023.20 to €5,795.99): €193.40 for 1 room
- Segment 8 (≥ €5,796.00): €219.30 for 1 room
For each additional room, the flat rate is increased according to the BOSS scale. The benefit automatically includes ancillary benefits (water, gas, electricity, heating, garage) if the employer covers them.
Evaluation Based on Actual Value
Evaluation based on actual value relies on the cadastral rental value or the real rental value of the housing. It includes the rent that the employee would have had to pay, plus any ancillary 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 beneficial for the employee in high-demand areas.
Vehicle Benefit
⚠️ Vehicle evaluation scales (and the applicable deduction for electric vehicles) have been modified by decree and are regularly updated: check the applicable scale on the BOSS for the year concerned.
The evaluation of the vehicle benefit in kind was updated on February 1, 2025. The scales have been revised and specific provisions apply to electric vehicles.
Vehicle Owned by the Employer
When the employer owns the vehicle, the flat evaluation depends on the age of the vehicle and whether fuel is covered:
- Vehicle 5 years old or less, without fuel: 15% of the total purchase price (including tax) per year
- Vehicle 5 years old or less, with fuel: 20% of the total purchase price (including tax) per year
- Vehicle over 5 years old, without fuel: 10% of the total purchase price (including tax) per year
- Vehicle over 5 years old, with fuel: 15% of the total 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.
Vehicle Rental (or Leasing)
When the vehicle is leased (LLD or LOA), the flat rates are calculated 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 leased for 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: A 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 (check the vehicle scale mentioned above).
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. Since this amount is below the limit of €4,582, the retained benefit in kind is €2,025 per year, or €168.75 per month.
If the 70% deduction leads to a residual benefit greater than €4,582, the cap of €4,582 applies. In practice, this concerns very high-end electric vehicles.
Actual Vehicle Evaluation
Employers can opt for actual evaluation, considering:
- Annual depreciation of the vehicle (or lease payments)
- Insurance
- Maintenance costs
- Fuel, if applicable
The total amount is prorated based on private mileage versus total mileage. This method requires maintaining detailed records, which makes it more cumbersome to manage.
NTIC (New Technologies) Benefit
When the employer provides NTIC tools (laptop, tablet, mobile phone) for mixed personal and professional use, a benefit in kind must be evaluated.
Flat-Rate Evaluation: 10% of Purchase Cost
The BOSS provides for a flat-rate evaluation at 10% of the public purchase cost (including tax) of the tool provided. This flat rate covers the private use of the tool.
Example: A laptop bought 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 internet subscription at home, the cost of this subscription is added to the evaluation.
Exemption Cases
Reasonable private use of professional tools may be tolerated without constituting a benefit in kind, as long as this use remains marginal and is provided for in the company’s IT charter. However, if the tool is explicitly provided for private use (for example, a personal mobile phone supplied by the employer), the benefit must be evaluated.
Impact of Benefits in Kind on the Payslip
On the payslip, benefits in kind undergo double treatment:
- As an addition to gross: the benefit in kind is included in gross remuneration for social security contribution calculations.
- As a deduction from net: the benefit in kind is deducted from the net pay as 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 Payslip Example:
- Base 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 withholding tax: €2,230
URSSAF Controls on Benefits in Kind
Benefits in kind are one of the most monitored items by URSSAF. The main reasons for assessments include:
- Total lack of evaluation of an existing benefit in kind (company vehicle used for private purposes without benefit in kind on the payslip)
- Undervaluation of the benefit (using flat rates when actual would be more favorable to URSSAF, or vice versa)
- Non-compliance with meal voucher exemption conditions (employer contribution exceeding 60% or €7.32)
- Absence of supporting documents in the case of actual evaluation (no mileage logs for vehicles, no invoices for housing)
To secure your practices, it is recommended to formalize the company’s policy on benefits in kind in writing and to keep all supporting documents.
Summary Table of 2025 Scales
- Meals: €5.50 per meal (flat rate)
- Meal Vouchers: employer maximum exemption €7.32 (max 60% of face value)
- Housing: 8-segment scale based on salary and number of rooms
- Vehicle purchased ≤ 5 years: 15% (without fuel) / 20% (with fuel)
- Vehicle purchased > 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
- NTIC: 10% of the public purchase cost (including tax)
FAQ: Your Questions on Benefits in Kind
Can the employer freely choose between flat-rate evaluation and actual evaluation?
Yes, the employer can choose the evaluation method (flat-rate or actual) for each benefit in kind, unless otherwise stipulated by collective provisions. This choice can differ from one benefit to another (for example, flat-rate for the vehicle and actual for housing). However, the choice must be consistent for all employees benefiting from the same advantage to avoid discrimination. The choice can be revised each year during annual regularization.
How to evaluate vehicle benefits when the employee returns the vehicle during 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 instance, if the employee returns the vehicle during 2 weeks of vacation, the monthly benefit is reduced pro rata. However, if the vehicle remains available to the employee even during vacations (which is usually the case), the full benefit is due for the 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 evaluated according to the standard scales for thermal vehicles. This distinction is clearly stated by the BOSS and has been confirmed during updates on February 1, 2025.
Are meal vouchers considered a benefit in kind?
Meal vouchers do not strictly constitute a benefit in kind per the BOSS. They fall under a specific exemption regime. The employer’s contribution is exempt from social security contributions if it meets the two cumulative conditions: it must not exceed 60% of the face value of the voucher, and must not exceed €7.32 per voucher (as of January 1, 2026). The excess fraction is reintroduced into the contribution base.
What are the risks for the employer in case of non-evaluation of a benefit in kind?
Failure to evaluate a benefit in kind constitutes a breach potentially subject to URSSAF reassessment. The collection inspector will recalculate the benefit according to the method most favorable to URSSAF (usually the flat rate) over the last 3 years of monitoring, applying late fees (5% in case of good faith, 25% in case of bad faith). The reassessment concerns both unpaid employer and employee contributions.