Make your reward scheme more rewarding

A personnel fund is an effective tool for managing, paying and investing bonuses paid to employees.

A Personnel Fund helps a company and its employees get more from the euros used for compensation. Paying performance or profit bonuses into a fund instead of giving them as cash payments results in cost benefits that enable larger bonuses for the employees. The employee also benefits from the returns generated by the fund’s investment operations and from tax benefits when he or she withdraws assets from the fund.

For the employer, Personnel Fund offers means of enhancing the effectiveness of its employee rewards and improving communications on the rewards. Through the fund your company can easily communicate of work targets and the reward criteria. Acviement of targets also becomes more visible. Bigger bonuses increase personnel’s interest in achieving the targets. Employees will remember the benefits of achieving the targets longer when the bonuses are funded and the assets generate returns.

The Personnel Fund is, above all, a flexible tool to help employees save, for example, for their retirement or for other personal goals.

Benefits for the company

  • No social security costs on rewards paid into the personnel fund
  • When paid into the fund, the employees' performance-based rewards are considered tax-deductible income expenses
  • Reward system can be adapted to your company's needs: it can be individual or group-specific
  • The fund boosts the employees' motivation and their interest in the productivity of their work
  • A flexible and cost-effective solution for offering personnel the opportunity to generate personal savings
  • An excellent means of bringing personnel on board in investing in the company’s shares
  • The fund is available as a turnkey solution that includes wealth management

Benefits for the employee

  • No tax is paid on the bonus items transferred to the fund or on the returns generated by the fund
  • The employee may withdraw 15 % of his or her share of the fund each year, starting in the first funding year
  • 20 % of the withdrawn share is always tax free; the rest is taxable earned income
  • Employees can flexibly save for purposes that suit their personal situation, for example, for a leave of absence for studies, for part-time retirement or for a vacation
  • In addition to the rewards, the employees gain returns secured by investment professionals on the fund
  • The employee can decide on withdrawal of his or her share of the fund every year

A flexible way to reward

The Personnel Fund is a flexible way to reward employees. It allows the company to transfer its employees’ performance and profit bonuses into the fund at a rate of its choosing. The rewards paid into the fund can be linked to, for example, unit, group or individual criteria, and the bonus items can be paid out both collectively and on the group and individual level.

The fund can be set up by essentially any company with more than 10 employees. It can help boost the effectiveness of an existing performance bonus system. The Personnel Fund is also an excellent employee compensation tool for companies who do not have such a system in place.

We offer companies comprehensive fund management and expert reward services together with our subsidiary Innova.

Our services cover:

  • Expert services for planning an effective employee compensation and reward system
  • The establishment and registration of the fund
  • Calculation and payment of the members’ fund units and maintenance of the members’ data
  • Advisory services for members
  • Fund bookkeeping and administration
  • Wealth management and investment operations

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