Mobile phone (private use)

The private use of a mobile phone that is made available to the employee and paid for by the employer, is considered as a benefit in kind subject to social security contributions.

This benefit in kind is assessed on a flat-rate basis. In particular, this lump-sum assessment may be broken down as follows (depending on what the employer pays for):

• EUR 36 per year per mobile phone provided free of charge (the device);
• EUR 60 per year for the mobile internet connection provided free of charge (in any event, only one benefit of any kind for the provision of an internet connection is applied per employee);
• EUR 48 per year per telephone subscription provided free of charge.

The benefit subject to social security contributions is, where applicable, reduced by the employee's personal contribution to the costs of private use of the mobile phone. Thus, if the employee reimburses the company for part of the invoices relating to the private use of the mobile phone, the benefit subject to social security contributions must be reduced accordingly. The benefit in kind may not be applied to the device under certain conditions (private use fully paid for by the employee).

The mobile phone may sometimes be acquired by the employee at a reduced price after a certain period or at the end of the contract. In such cases, the difference between the device's actual residual market value and the amount paid by the employee is considered as a benefit in kind. This benefit is then included in the calculation of the employee’s remuneration and is subject to normal social security contributions. However, if the employee acquires the device at its actual residual value, there is no benefit in kind, and no additional social security contributions are due. It is important to note that the company's tax depreciation of the device has no impact on the determination of its actual residual value.