In each company the relationship between employer and employees is a basic condition for its proper functioning and the realization of its basic objective which is to develop its work while maximizing profit.
Group insurance, a voluntary provision of the company to its employees beyond social security, acts as a powerful tool and incentive to strengthen this relationship worldwide by offering its employees a sense of confidence and security.
Additional benefits of group insurance are as follows:
- It brings to the company a picture of prestige and high professionalism offering competitive advantage and added value.
- It acts as a tool for retaining and attracting executives, since it is a competitive advantage of the company.
- Builds relationships of trust and faith in the Company
- Provide life - health – income and pension protection to the employee
- Protects the standard of living of workers and their families
- Directly boosts his income
- Complements and upgrades the social fund's benefits
- Ensures it from the consequences of unforeseen – predictable events
- Enables him to cover his family members
TAX INCENTIVES
In contrast to the premiums of individual private insurance, for which all tax exemptions have been abolished, group insurance policies still have various tax incentives in accordance with Article 14 of Law 4172/2013.
More specifically
Α. What applies to the premiums of group pension schemes?
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Employers' contributions benefit from full tax recognition (production expense) when calculating the income tax of the legal person.
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Voluntary contributions by employees in the calculation of payroll will be excluded from the calculation of payroll tax such as deductions of insurance funds (essentially exempt from income tax).
Β. What applies to the payment of an error?
Taxation is autonomous (i.e. taxes are withheld before payment).
- At a rate of 10% for a one-time benefit paid up to 40.000€.
- At a rate of 20% for a one-time benefit paid (for the amount of more than 40.000€) exceeding 40.000€.
- The rates in the above cases shall be increased by 50% in the event of the recovery of an amount from the beneficiary of an early redemption amount.
C. What applies to the premiums of group health plans?
The premiums paid by the employer for the medical and hospital coverage of the staff or to cover the risk of life or incapacity under an insurance policy, are tax-exempt up to the amount of 1.500€ per year per employee.
