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Maximizing your end-of-year premium Payflip: A guide to smart choices
Maximizing your end-of-year premium Payflip: A guide to smart choices

This article will walk you through some practical examples of how you can optimize your Payflip budget to get the most value.

Sofia Van Rijckevorsel avatar
Written by Sofia Van Rijckevorsel
Updated over 3 months ago

Welcome to our guide on making the most of your end-of-year premium! πŸŽ‰

Are you wondering how to turn your hard-earned premium into benefits that really make a difference? You're in the right place!

We'll start with a typical salary scenario and break down various benefit options, showing you exactly how much you can save and gain compared to taking your premium as cash. From pension savings to smartphones, bike leases to extra vacation days, we'll crunch the numbers so you can see the real impact on your wallet and lifestyle.

⚠️ Remember, these are just examples to illustrate the potential of your Payflip budget. Your personal circumstances and preferences will guide your own choices, but we hope these scenarios will inspire you to explore the full range of benefits available to you.


πŸ’° My salary package and my Payflip budget

  • Gross salary: €3000
    ​Employer social security contribution rate: 27%

  • Employee social security contribution rate: 13,07%

  • Withholding taxes rate: 53,5%

  • Payflip EYP Budget: €3000 * 1.27 = €3810

Let's dive in and see how I can transform my €3810 Payflip budget into a package of benefits worth much more!

🎁 What can I choose with a budget of €3810?

1️⃣ Reimbursement of pension savings

I want to get the reimbursement of the total amount I saved last year: €990.

Formula

Amount

Choice price

€990

Budget impact (employer cost)

€990 * 1.0886

€1077,71

Net benefit

€990 - 53,5%

€460,35

Cash
​
​amount received if not allocated to this choice

€1077.71 / (1 + 27%) * (1 - 13,07%) * (1 - 53,5%)

€343,02

Net optimization

€460,35 - €343,02

€117,33

2️⃣ Smartphone

I want to choose a smartphone that costs €1000.

Formula

Amount

Choice price

€1000

Total budget impact (employer cost)

(for 24 months)

€1000 + (€3 * 24 months * 27%) + (€1000 * 20% * 27%) + (0.0767 * €3 * 24 months)

€1078,96

Budget impact (employer cost) for the year of choice

= €1078,96 / 2

€539,48

Net benefit

Smartphone πŸ“±


​with €42 of taxes

Cash

amount received if not allocated to this choice

€1078,96 / (1 + 27%) * (1 - 13,07%) - (1 - 53,5%)

€343,42

3️⃣ Bike lease

I want to lease a bike that costs me €75/month during 36 months (leasing contract period).

Formula

Amount

Choice price

€75 * 12 * 36 months

€2700

Total budget impact (employer cost)
​
​(for 36 months)

€2700

Budget impact (employer cost) for the year of choice

= €2700 / 3

€900

Net benefit

Bike 🚲
+ potential tax-free bike allowance
​

with no taxes

Cash

amount received if not allocated to this choice

€2700 / (1 + 27%) * (1 - 13,07%) - (1 - 53,5%)

€859,37

4️⃣ Extra vacation days

I want to choose 2 extra holidays.

Formula

Amount

Choice price

(€3000 * 12 months / 261 working days per year) * (1 + 27%)

€175,17*2 = €350,34

Budget impact (employer cost)

€350,34

Net benefit

2 extra days off β˜€οΈ

Cash

amount received if not allocated to this choice

€2700 / (1 + 27%) * (1 - 13,07%) - (1 - 53,5%)

€111,51

5️⃣ Reimbursement of childcare costs

I have one child and I want to get the reimbursement of the maximum amount for this benefit, which is 600 EUR / child / year.

Formula

Amount

Choice price

€600

Budget impact (employer cost)

€600

Net benefit

€600 - 53,5%

€279

Cash

amount received if not allocated to this choice

€600 / (1 + 27%) * (1 - 13,07%) - (1 - 53,5%)

€190,97

Net optimization

€279 - €190,97

€88,03

6️⃣ Cash

I want to get the remaining balance in cash at the end of the year.

= €3810 - (1077,71 + 539,48 + 900 + 350,34 + 600) = €342,47

Formula

Amount

Choice price

€342,47

Budget impact (employer cost)

€342,47

Estimated gross cash-out

€342,47 / (1 + 27%)

€269,67

Estimated net amount

€342,47 / (1 + 27%) * (1 - 13,07%) - (1 - 53,5%)

€109

πŸ’Έ Summary of my choices

Thanks to my Payflip budget of €3810 I was able to get: πŸ‘πŸΌ

  1. Pension savings: €460,35 in net

  2. Smartphone: one smartphone πŸ“±

  3. Bike lease: the bike of your dream 🚲

  4. Extra vacation days: 2 extra days off β˜€οΈ

  5. Childcare costs: €279 in net

  6. Cash : €109 in net

If the entire €3810 was paid out as cash, I would have only received €1061,75 in net. πŸ‘ŽπŸΌ


I would have had to pay the following:

  • Employer social security (27%): €1028.70

  • Employee social security (13.07%): €497.97

  • Withholding tax (53,5%): €1221,58


🧐 How can I simulate this in Payflip?

➑️ I want to simulate how much I will get in cash at the end of the year

  1. Go to my Payflip account > Overview

  2. Click on 'Cash-out budget(s)'

  3. Click on the end-of-year premium budget

  4. Enter the amount I would like to get in cash at the end of the year
    ​

➑️ I want to simulate a benefit choice

  1. Click on the benefit of my choice

  2. Read all info at my disposal and accept the terms & conditions

  3. Enter the required info

  4. Click on 'see budget impact' πŸ’Έ
    ​

βœ… Never hesitate to simulate choices and put them in your shopping bag! Nothing will happen as long as you do not click on 'confirm choices'.
​
​Imagine you are doing some shopping on a classic webshop : nothing happens as long as you do not click on 'pay'.


​

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