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Three ways to maximise your salary

Want to earn more? Who doesn’t! But how do you optimise your salary? A survey by research bureau Profacts reveals that 58% of Belgians ask themselves this very question. Here are a few answers. 

1 – Think about extralegal benefits 

To optimise your income, you likely first think of an increase in your net salary. But given the particularly high level of payroll costs in our country, this isn’t the most attractive option for your employer. Put simply, a small increase in your net salary represents a much higher expense for them.

Fortunately, there are other ways to increase your net income. These are what are known as extralegal benefits, such as a company car, a bike allowance, various sorts of vouchers, etc.  

You need to realise however, that several types of extralegal benefits are awarded collectively, and that you cannot negotiate them individually. This is the case for meal and eco-vouchers for example, as well as hospitalisation insurance. When you ask for them, it is therefore important to check which benefits the employer offers. 

Your employer can also support your mobility. For example, by granting you a "company car". But there are more sustainable alternative solutions. If you cycle to work, your employer can grant you a non-taxable bike allowance. Company bikes are also interesting, both for you and your employer. This mobility budget allows you to combine different modes of transport, such as a small eco-friendly company car, an (electric) bike and public transport. 

A group insurance policy is also worth considering: your employer can help you build up a supplementary pension. It’s an excellent way to increase your income after retirement. 

2 - Make the most of your tax benefits 

The State encourages various forms of saving and investment. Don’t miss out on using the full tax benefit options of pension savings and long-term savings. In both cases, you can choose between two types: saving or investing.  

If you make the most of the tax benefit, you can reduce your taxes by more than €1,000 per year. You can make your life easier by setting up a standing order just after your salary payment. The tax benefit will happen when you pay your taxes: you simply have to pay less to the tax authorities.  

If you start saving early, you will already have built up a nice supplement to your statutory pension.  

3 - Make your money work 

Do you know the concept of precautionary savings? It’s simply the money you put aside to cover large unexpected expenses.  

These savings should generally represent a few months’ salary, which you place in a safe savings account. If, after building up this financial cushion and making use of the tax advantages of pension savings and possibly long-term savings, you still have a budget available, it’s wise to invest a portion of it.

Investments always carry a certain level of risk. However, in return, they offer the prospect of higher long-term returns. Generally, you should only invest money that you don’t need immediately. By diversifying your investments well, you have the opportunity to achieve significant gains over the long term and to weather temporary downturns in the stock market.

There are many misconceptions surrounding investments: it’s often said that they require large sums of capital, need close monitoring, and demand extensive knowledge. This is no longer true today. Did you know that you can start investing with as little as 30 euros per month? That you can be assisted by a robo-advisor or a personal advisor? In short, as soon as you have enough savings and a sufficiently long investment horizon, there’s an investment solution that’s right for you!

About Ask Your Bank 

BNP Paribas Fortis wants to help you gain clarity when it comes to managing your money. That’s why we asked over 1,000 Belgians about their questions and concerns. With the Ask Your Bank series, we’re providing transparent answers.