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Help by employers with the cost of living


The current cost-of-living crisis means many workers struggling to cope with inflationary pressures, with food, transport and energy becoming significantly more expensive. If employers want to offer employees a payment or allowance to help out, what are the implications, and what is and is not allowed? Ius Laboris lawyers in a range of countries explain.

What are the tax and social security consequences of making payments to help employees with the cost of living?

Can you attach conditions to cost-of-living payments, such as reimbursement if the employee leaves?

Can payments be prorated for part-time employees or limited to employees below a certain salary level?

Can payments be limited to employees in financial need and are there privacy issues to consider around this?

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