Childhood Vouchers: An Extrabudgetary Advantage for Companies and Employees

Childhood vouchers present an interesting alternative for companies that wish to offer benefits to their employees beyond salary. This benefit is one of several tax incentives that can be used to reduce company costs while providing financial advantages to employees.

What Are Childhood Vouchers?

Childhood vouchers are amounts allocated to cover expenses related to nurseries and kindergartens for employees’ children. This benefit is not considered taxable income, meaning it is not subject to income tax or Social Security contributions, as long as it does not exceed the legal limit.

Advantages for Companies

By offering this type of benefit, companies gain several advantages, such as the ability to deduct these amounts for corporate income tax (IRC) purposes. This helps reduce tax costs while maintaining a more favorable and balanced work environment. Additionally, the company is seen as an employer that values employee well-being, contributing to talent retention.

Benefits for Employees

For employees, childhood vouchers provide direct support for family expenses, especially in the early stages of children's education. Since they are not considered work income, employees do not see their net salary affected by taxes, thus increasing their purchasing power. It’s a solution that benefits the family and promotes a better quality of life.

Limits and Conditions

There are specific rules for the allocation and use of childhood vouchers. Companies must comply with the legal limits defined for this type of benefit to ensure it is not taxed. Generally, vouchers can only be used in educational or care institutions recognized by the relevant authorities.

Conclusion

Childhood vouchers are an excellent option for companies looking to offer attractive benefits to their employees without directly increasing salaries. This type of extrabudgetary advantage has a positive impact for both the employer and the employees, representing an effective solution for managing family expenses and retaining talent within companies.

Get in touch Serro & Andrade , to learn more about this small but significant benefit for your family.