There could be tax reasons that make it a good deal, especially if she was going to spend the money on goat pellets anyway. I’m no expert on tax law, especially in whatever country this is, but if it was paid out as salary it would likely be taxable income and much less would actually end up paid out to the employee. In Germany both the employer and employee pay towards state pension and social security (health insurance, unemployment protection etc.), so even less of whatever budget the employer has set aside for this could actually be paid out. The main disadvantage for the employee would be that they would end up with a smaller state pension, but it could still work out as a net benefit to them. And the employer at least theoretically gets the benefit of losing less productivity to unwell employees.
True, but, at least here in Germany, there are tax exempt amounts for things like this and I think social security payments would not be paid on it either, making it much cheaper for the employer (which at least in theory means they can pay out more). I’m sure it’s different in every country though.
There could be tax reasons that make it a good deal, especially if she was going to spend the money on goat pellets anyway. I’m no expert on tax law, especially in whatever country this is, but if it was paid out as salary it would likely be taxable income and much less would actually end up paid out to the employee. In Germany both the employer and employee pay towards state pension and social security (health insurance, unemployment protection etc.), so even less of whatever budget the employer has set aside for this could actually be paid out. The main disadvantage for the employee would be that they would end up with a smaller state pension, but it could still work out as a net benefit to them. And the employer at least theoretically gets the benefit of losing less productivity to unwell employees.
It would still be considered compensation and taxed as income.
True, but, at least here in Germany, there are tax exempt amounts for things like this and I think social security payments would not be paid on it either, making it much cheaper for the employer (which at least in theory means they can pay out more). I’m sure it’s different in every country though.