A tough dilemma in your professional career: do you opt for a higher gross salary, or are you tempted by fringe benefits like a company car? A lot depends on your personal priorities. Discover the advantages of both options and gain insights to make the best decision.
Advantages of a higher gross salary
- Financial flexibility
A higher gross salary means more financial freedom. You decide whether to save, invest, or enhance your lifestyle.
- Pension building
The higher your gross salary, the more pension you accumulate, creating financial security for your retirement.
- Holiday pay and year-end bonus
Your holiday pay and year-end bonus are based on your gross salary. So, a higher salary also means more holiday pay and a bigger bonus.
- Negotiation opportunities
Your current gross salary sets the stage for future salary negotiations. A higher salary increases your market value and strengthens your position in job offers.
Advantages of fringe benefits, like a company car
- Mobility and comfort
If you're frequently on the road for work, a company car reduces commuting stress and facilitates work-life balance.
- Tax advantages
Some fringe benefits are tax-efficient, meaning you pay less in taxes.
- Cost savings
Fringe benefits like a company car or meal vouchers can save expenses that would typically come out of your pocket, increasing your purchasing power.
Which should you choose? Determine your priorities
Your choice between higher salary or fringe benefits depends on your priorities. Consider the following questions before making your decision:
- What's your current financial situation?
If you’re planning to buy property or have a significant loan to repay, a higher gross salary is beneficial.
- What are your long-term goals?
A higher gross salary builds financial security for the future. Fringe benefits are more immediately gratifying.
- How much value do you place on mobility and convenience?
If you’re often on the move, a company car might have a greater positive impact on your life than a higher gross salary.
Before deciding, weigh your personal and professional ambitions carefully. Map out your needs and make a well-considered choice that suits your lifestyle.
Looking for more tips to maximize your career?
Check out our other career tips:
👉 First aid for performance reviews
👉 The 10 commandments for work happiness
👉 Asking for a raise? Here’s how to approach it
Ready for a career boost?
Drop by Vivaldis, and we’ll see together which jobs might suit you further.
