Finding new ways to offer attractive employee benefits is becoming increasingly important for Danish companies, especially in a competitive talent market.
One option gaining relevance is the Gross Salary Scheme - Bruttolønsordning - a smart way for employees to access work equipment at a lower personal cost, while companies can offer stronger benefits without raising salary budgets.
In this article, we'll explain what a Gross Salary Scheme is, how it benefits both companies and employees, and how Velory makes implementing it simple, compliant, and seamless.
What is a Gross Salary Scheme (Bruttolønsordning)?
A Gross Salary Scheme allows employees to buy work equipment such as laptops, phones, and tablets, through salary deductions made before taxes are calculated. Because the purchase is deducted from the gross salary, employees can benefit from significant tax savings compared to paying the full retail price after taxes.
Companies that offer a Gross Salary Scheme can enhance their overall benefits package without any direct costs, making it a highly attractive addition to their compensation strategy.
Read more about the Gross Salary Scheme (Bruttolønsordning) and learn about the legal requirements at the Danish Customs and Tax Administration: Skat.dk.
Why offer a Gross Salary Scheme?
Offering a Gross Salary Scheme for your employees provides clear advantages for both your company and your employees:
Benefits for companies:
- No additional cost: The scheme is tax-advantaged for employees without increasing employer expenses.
- Stronger recruitment and retention: Offering modern, flexible benefits helps attract and retain top talent.
Benefits for employees:
- Lower cost for hardware: Employees save money by purchasing devices through their gross salary before taxes are applied.
Here is an example of savings with a Gross Salary Scheme:
- Phone retail price: 10,000 DKK
- Tax savings (estimated at ~42%): 4,200 DKK
- Effective cost after tax deduction: 5,800 DKK
Instead of paying the full price, employees save a significant amount simply by using the Gross Salary Scheme.
Make Gross Salary Scheme seamless with Velory
Offering a Gross Salary Scheme sounds like a no-brainer: better benefits for employees, no extra cost for the company. But without the right tools, setting up and managing such a program can quickly become an administrative burden.
That's where Velory comes in. We make implementing and running a Gross Salary Scheme simple, automated, and hassle-free. Here's how:
How Velory supports companies (Admins)
- Effortless setup: Configure budgets, assign tax brackets by product category, and set up approval flows. All in a few clicks.
- Tailored store offerings: Control which products are available and how they are taxed, aligned with your company policies.
- Full visibility: Get a structured overview of all employee purchases and salary deductions, prepared monthly to support your payroll process.
- Minimal admin work: Automation reduces manual input for HR and payroll teams, freeing up valuable time.
A transparent experience for employees
- Clear savings: Employees see their estimated tax savings directly while browsing and at checkout.
- Flexible options: They can adjust their tax settings and select the tech they want based on company guidelines.
- Smooth ordering: Employees can easily track their order from purchase to delivery and manage buyout or return options after the set timeframe.
Velory empowers Danish companies to offer Gross Salary Schemes without complexity or extra costs. Employees gain access to affordable, premium tech, and companies can offer a competitive benefit without additional admin work. With trusted partners like Dustin integrated into the process, you can be confident that the experience will be smooth, professional, and fully supported.
Read more about Gross Salary Scheme and how Velory can help you offer it to your employees: https://velory.com/solutions/gross-salary-scheme
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