It is abundantly clear that it is not easy for most companies to attract new talent today. Shortages in the labour market and the war for talent represent a major challenge. Employees expect your company to offer a range of at least equally interesting fringe benefits in addition to an attractive salary. Which fringe benefits can you as an employer offer today in order to really make a real difference? Explore the various options to include a 'healthcare' budget: a benefit that offers added value to all your employees.
General trends in Belgium show that ambulatory care and dental care insurance are amongst the top three most interesting fringe benefits. They score higher than additional vacation days and a company car. Trees Dierickx, General Manager Account Management Employee Benefits at Vanbreda: “Today, 1 in 7 Belgians already have ambulatory care insurance and 1 in 5 have dental care insurance. The striking fact is that they usually arrange this type of insurance privately rather than via their employer. We have noted in recent years that employers are increasingly inclined to offer such supplemental health insurance collectively, because, being a caring employer, they are concerned about the well-being of their employees or because they use this benefit as an additional incentive in the war for talent.”
In Belgium, most employers offer hospitalisation insurance. This important financial safety net in the event of hospitalisation is now well established in this country and is often included in an organization’s standard fringe benefits package. Studies show that, on average, only 1 in 10 employees actually needs to take advantage of such insurance. A positive observation, but for many this insurance does not actually make a substantial difference in everyday life and this is where a great opportunity arises for you as an employer.
With ambulatory healthcare insurance, you will ensure that your employees’ and their family members’ everyday medical costs are covered. Most cases involve doctor and pharmacy fees, but dental or eye care costs are also eligible.
Trees Dierickx: “These costs typically represent a significant share of the family budget. By taking on the financial burden as an employer, your employees can spend their wages on other things. As the cost of providing for our livelihood continues to rise, we believe that the value assigned to this healthcare budget will continue to increase. We would even venture to say that this insurance is more interesting from a tax point of view than a net pay increase for the employee, because it is such a tangible benefit and results in immediate savings.”
Despite the many benefits for your employees and their families, supplementary insurance represents an additional investment in your employees for you as an employer. However, this need not be a stumbling block in the difficult economic climate we currently find ourselves in. In fact, this insurance can be modular. However, we do recommend that you consider the specific guarantees and intervention amounts you want to offer according to your budgetary possibilities.
Trees Dierickx: “Do you want to provide your employees and their families with a comprehensive care package? If so, you could opt to reimburse all ambulatory medical expenses including dental and eye care. However, you could also opt for more limited cover or, for example, only insure dental care. Moreover, you can determine the maximum amount the insurance will cover, which exemptions apply and even the percentage of reimbursement. Typically, 80% of ambulatory medical expenses are reimbursed, but by reducing this percentage, you can keep insurance premiums under control.”
The flexibility offered by this type of insurance goes even further. You can opt at the outset to only insure a specific employee category or ask your employees to pay (part of) the insurance premiums. Remember that you can amend your plan or expand its cover to include a larger population at any time.
The minimum guaranteed return on supplementary pensions has been 1.75% since 2016. On 1 January 2025, following this long period at a constant level, the statutory guaranteed return will rise to 2.50%. What impact does this increase have on your company’s pension schemes?
By means of global benefits management, your organisation can easily run a strong employee benefits package worldwide. This structured, central approach provides a useful overview of all benefits and enables you to put together an attractive package in the war for talent. If social security is non-existent or too limited in one of the countries where you’re based, you can also provide your employees there with additional support through this insurance package. Employee benefits expert Kristof Baertsoen talks about the advantages of global benefits management in the latest episode of our video podcast Succes Verzekerd.
From 1 November 2024, hospitalisation insurance will cover the costs of a suicide attempt. The law of 21 April 2024 has amended existing health cost insurance legislation to this end.
Since 2019, local authorities have been encouraged to introduce or develop a supplementary pension scheme for the benefit of their contractual staff. If – among other requirements – this supplementary pension scheme is large enough, meaning in practice a contribution of at least 3% to a defined contribution scheme, the local authority is eligible for a discount of up to 50% on the additional annual shortfall contribution. This discount is adjusted by the latest pension reform to maintain the financial robustness of the Common Pension Fund.
Would you like to receive more information or need advice tailored to your organization? If so, feel free to contact our insurance experts.