Flash News NA 10/31/2023
Exempt Limits for Telework Compensation Amounts

The limits for telework compensation that are exempt from IRS and Social Security contributions have been established, as provided for in Article 168(6) of the Labor Code.

Following the Decent Work Agenda, which introduced several changes regarding telework, including compensation to employees for the purchase of equipment and additional expenses associated with its use, the limits for compensation that can be paid by the employer to the employee and that are exempt from IRS and Social Security contributions were established and came into effect on October 1, 2023. These compensation amounts are still considered a tax cost for the employer.

The limits for compensation that are exempt from IRS and Social Security contributions are as follows:

– Residential electricity consumption: €0.10 per day;

– Personal internet usage: €0.40 per day;

– Personal computer or equivalent computer equipment: €0.50 per day;

These limits may be increased by 50% if defined in a collective bargaining agreement.

The indicated limits may only be applied to compensation for the professional use of goods or services during telework that were not made available directly or indirectly by the employer. For example, if the employer provides a computer to the employee, the daily compensation of €0.50 for the use of a personal computer or equivalent computer equipment does not apply.

The indicated limits may only be applied to full days of telework and if there is a written agreement between the employer and the employee in accordance with Article 166 of the Labor Code.

At Nominaurea, we are available to support your company in all the essential aspects of its operations, always complying with all legal requirements.

We look forward to hearing from you!