Dear All,
My company is planing to introduce sodexo passes to the salary structure of employees. I have done some research and have also met a representative from Sodexo. After all the discussion i found that more or less introduction of sodexo is mainly centered to employee benefits. I am still in a fix to make a decision as i am not clear with the part that what will be the companies benefit in introducing sodexo?
Kindly share your experience regarding the same.
From India, Bangalore
2My company is planing to introduce sodexo passes to the salary structure of employees. I have done some research and have also met a representative from Sodexo. After all the discussion i found that more or less introduction of sodexo is mainly centered to employee benefits. I am still in a fix to make a decision as i am not clear with the part that what will be the companies benefit in introducing sodexo?
Kindly share your experience regarding the same.
From India, Bangalore
Dear Prachi,
Yes sodexo passes are tax benefit to employees. To my knowledge we can issue up to Rs. 50/- per day other wards Rs.1300/- per month (26 working days per month X 50 Rs.), I think earlier it was 30,000/-per annum, maximum Rs. 100/- per day.
For getting these coupons employer has to pay service, Delivery charges and Service Tax on these charges. Note that Employer should not deduct these charges from employee salary. If you wait some more time I am sure our seniors will give you appropriate answer in this regard.
From India, Hyderabad
Yes sodexo passes are tax benefit to employees. To my knowledge we can issue up to Rs. 50/- per day other wards Rs.1300/- per month (26 working days per month X 50 Rs.), I think earlier it was 30,000/-per annum, maximum Rs. 100/- per day.
For getting these coupons employer has to pay service, Delivery charges and Service Tax on these charges. Note that Employer should not deduct these charges from employee salary. If you wait some more time I am sure our seniors will give you appropriate answer in this regard.
From India, Hyderabad
Dear TELIKEPALLI,
Thank you for sharing your view. You are right its Rs. 50/per day for lunch. But the representative from Sodexo have informed me that its Rs. 100 (meal) + Rs. 40 (coffee & snacks) per day. So it becomes Rs. 140 per day. Total Rs. 3640/month.
But my doubt is what is the companies benefit in introducing such concept in salary structure. Because at the end of the day company land up paying more for meal passes (Tax+service charge+delivery charges). So there must be some reason for introducing them apart from employee welfare.
I can wait for some time since the decision is still on hold and before introducing have to consider all pros and cones.
From India, Bangalore
Thank you for sharing your view. You are right its Rs. 50/per day for lunch. But the representative from Sodexo have informed me that its Rs. 100 (meal) + Rs. 40 (coffee & snacks) per day. So it becomes Rs. 140 per day. Total Rs. 3640/month.
But my doubt is what is the companies benefit in introducing such concept in salary structure. Because at the end of the day company land up paying more for meal passes (Tax+service charge+delivery charges). So there must be some reason for introducing them apart from employee welfare.
I can wait for some time since the decision is still on hold and before introducing have to consider all pros and cones.
From India, Bangalore
Dear Prachi,
In Europe Sodexho passes are the norm and not an option for employees in most companies. The only companies that do not have Sodexo vouchers are the really small companies who cut corners on everything.Having lived abroad for a very long time (I came back over a month ago), I have noticed that they are an excellent way to retain employees. Also, the amount on the passes goes up each year based on the inflation and the profits made by the company. However, this is not mandatory. There are tax benefits and costs too. Normally it is 50/50 or 60/40 (company/employee). The passes are given to everyone form top to bottom management and are of the same amount.
Companies that wish to provide this incentive to their employees and do not wish to be taxed too heavily by the govt as well as pay as little as possible take the minimum amount possible (on which the govt does not charge any tax) and increase it by the bare minimum every year. This ensures that employees are happy, are provided an incentive while making sure that the company pays the least minimum cost possible. In this scenario, there is no cost to the employee and it does not figure on their pay slip either.
Lastly and equally important, some very good companies also provide the Sodexo passes to all employees at all levels with no cost to the employee at all. IN this case though, it figures on the pay slip and is also incorporated in the salary structure.
Hope this is useful information for you.
Regards
Rachna
From India, Jaipur
In Europe Sodexho passes are the norm and not an option for employees in most companies. The only companies that do not have Sodexo vouchers are the really small companies who cut corners on everything.Having lived abroad for a very long time (I came back over a month ago), I have noticed that they are an excellent way to retain employees. Also, the amount on the passes goes up each year based on the inflation and the profits made by the company. However, this is not mandatory. There are tax benefits and costs too. Normally it is 50/50 or 60/40 (company/employee). The passes are given to everyone form top to bottom management and are of the same amount.
Companies that wish to provide this incentive to their employees and do not wish to be taxed too heavily by the govt as well as pay as little as possible take the minimum amount possible (on which the govt does not charge any tax) and increase it by the bare minimum every year. This ensures that employees are happy, are provided an incentive while making sure that the company pays the least minimum cost possible. In this scenario, there is no cost to the employee and it does not figure on their pay slip either.
Lastly and equally important, some very good companies also provide the Sodexo passes to all employees at all levels with no cost to the employee at all. IN this case though, it figures on the pay slip and is also incorporated in the salary structure.
Hope this is useful information for you.
Regards
Rachna
From India, Jaipur
Dear Prachi,
Giving benefit of Food Coupn facility to employees can be optional since this is not going to give benefit to all levels of employees in an organisation. The amount for tax purpose is Rs. 50/- per day for 26 Days is correct. That is the benefit accross most of the company follows. Regarding the commission payable to Food Coupn agency, there are some companies are deducting from employees salary and some companies are not deducting. This is purely the company policy whether to charge on employees account or companies expenses. By adopting food coupn employer are not getting any benefit but this is basically to avoid the tax.
Regards
S. Anand
From Japan
Giving benefit of Food Coupn facility to employees can be optional since this is not going to give benefit to all levels of employees in an organisation. The amount for tax purpose is Rs. 50/- per day for 26 Days is correct. That is the benefit accross most of the company follows. Regarding the commission payable to Food Coupn agency, there are some companies are deducting from employees salary and some companies are not deducting. This is purely the company policy whether to charge on employees account or companies expenses. By adopting food coupn employer are not getting any benefit but this is basically to avoid the tax.
Regards
S. Anand
From Japan
Dear all
I am getting sodexo voucher/coupon.It is worst for all emplyee of our organisation.Reasons
(1)You can not find any shops who is either willing to accepts coupons OR accepts coups on the basis of MRP on the package.In our country MRP written on box is much higher side .so If you purchase packed items by coupons, sodexo eats more than your tax liability.
(2)Any company starts sodexo.they may not give other alternative to those employee who is not willing to take S'Coupons.So such employee will encash it with traders who deduct some lump sum amount which is almuch higher than tax liability.
(3)Sodexo does not cover all cities of India.
(4)Simply economic principle say that direct purchase is aways cheaper than indirect purchase and Sodexo coupons is also under 12 % service charge catogaries.
Please be a good hr manager and avoid Sodexo for the moral of employee OR take each and every employee's opinion before issuing Sodexo.
It is not indian system.
From India, Indore
I am getting sodexo voucher/coupon.It is worst for all emplyee of our organisation.Reasons
(1)You can not find any shops who is either willing to accepts coupons OR accepts coups on the basis of MRP on the package.In our country MRP written on box is much higher side .so If you purchase packed items by coupons, sodexo eats more than your tax liability.
(2)Any company starts sodexo.they may not give other alternative to those employee who is not willing to take S'Coupons.So such employee will encash it with traders who deduct some lump sum amount which is almuch higher than tax liability.
(3)Sodexo does not cover all cities of India.
(4)Simply economic principle say that direct purchase is aways cheaper than indirect purchase and Sodexo coupons is also under 12 % service charge catogaries.
Please be a good hr manager and avoid Sodexo for the moral of employee OR take each and every employee's opinion before issuing Sodexo.
It is not indian system.
From India, Indore
Hi dear,
as for your question about sodexo passes in salary structure, is good things from employer as well as from employee side, from employer side for tax benifits as well as for retaining existing employees in organisation as well as to gain theire trust on company, dont see any thing whether it is costly for the company or not, see the advantages u will get from it, employee feel like they are part of organisation they feel that company thinking for theire employee, they become happy from company side, and on the behalf of this they will provide u maximum productive work. Also u think in todays work enviornment where pepole living there job within 6 month. Due to this efferts atlist u company retantion ratio will help u in future that not to spend to much mony behind new hiring.
So i think now u r clear about the whole things. Not think about today think about future............
From India, Mumbai
as for your question about sodexo passes in salary structure, is good things from employer as well as from employee side, from employer side for tax benifits as well as for retaining existing employees in organisation as well as to gain theire trust on company, dont see any thing whether it is costly for the company or not, see the advantages u will get from it, employee feel like they are part of organisation they feel that company thinking for theire employee, they become happy from company side, and on the behalf of this they will provide u maximum productive work. Also u think in todays work enviornment where pepole living there job within 6 month. Due to this efferts atlist u company retantion ratio will help u in future that not to spend to much mony behind new hiring.
So i think now u r clear about the whole things. Not think about today think about future............
From India, Mumbai
Dear Prachi,
In my Company we have issued Sodexo Coupons. It is basically a tax saving scheme for the employees, considering as one of the Welfare measure for the employees and their families. Now a days Sodexo Coupons and Sodaxo Gift coupons are accepted in various places. It will be useful for the employees drawing more salaries as they can save Income tax as per prevailing tax laws.
You can negotiate with sodexo Company for Service charges etc.
One suggestion that you do not show this Sodexo coupons in salary slips, it has to be disbursed separately as a Welfare measure. I am sure you will earn lots of good will from employees' family.
Ravindra
Paradise HR Solutions
Nashik.
From India, Nasik
In my Company we have issued Sodexo Coupons. It is basically a tax saving scheme for the employees, considering as one of the Welfare measure for the employees and their families. Now a days Sodexo Coupons and Sodaxo Gift coupons are accepted in various places. It will be useful for the employees drawing more salaries as they can save Income tax as per prevailing tax laws.
You can negotiate with sodexo Company for Service charges etc.
One suggestion that you do not show this Sodexo coupons in salary slips, it has to be disbursed separately as a Welfare measure. I am sure you will earn lots of good will from employees' family.
Ravindra
Paradise HR Solutions
Nashik.
From India, Nasik
Dear Anad,
Thanks for sharing your views. You absolutely right that some companies charge their employees for the meal passes and some do not. As far as my knowledge goes there are options like:
1) optional to the employees
2) employees paying full amount
3) company pays 50% and employee pays 50%
4) even some follows 40 / 60 % too.
Now my concern is on what grounds shall i opt the above mentioned options.
Which policy your company is following currently??
From India, Bangalore
Thanks for sharing your views. You absolutely right that some companies charge their employees for the meal passes and some do not. As far as my knowledge goes there are options like:
1) optional to the employees
2) employees paying full amount
3) company pays 50% and employee pays 50%
4) even some follows 40 / 60 % too.
Now my concern is on what grounds shall i opt the above mentioned options.
Which policy your company is following currently??
From India, Bangalore
Dear Ravindra,
Thanks for sharing your views. I am surprised to know that Sodexo people can negotiate on the service charge. Well i guess that will totally depend upon the bulk purchase. Can you let me know how much flexible Sodexo people are in regards to the service charge. You can drop me a mail at
with details.
Regards,
Prachi
From India, Bangalore
Thanks for sharing your views. I am surprised to know that Sodexo people can negotiate on the service charge. Well i guess that will totally depend upon the bulk purchase. Can you let me know how much flexible Sodexo people are in regards to the service charge. You can drop me a mail at
Regards,
Prachi
From India, Bangalore
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