Definition: Gross non-cash employee income
This refers to the non-monetary income components which may be provided free or at a reduced price to an employee as part of the employment package by an employer.
Gross non-cash employee income includes:
- company car and associated costs (e.g. free fuel, car insurance, taxes and duties as applicable) provided for either private use or both private and work use,
- free or subsidised meals, luncheon vouchers,
- reimbursement or payment of housing-related expenses (e.g. gas, electricity, water, telephone or mobile telephone bills),
- other goods and services provided free or at a reduced price by the employer to their employees, when they are a significant component of the income at national level or they constitute a significant component of the income of particular groups of households.
The value of goods and services provided free shall be calculated according to the market value of these goods and services. The value of the goods and services provided at a reduced price shall be calculated as the difference between the market value and the amount paid by the employee.
It does not include:
- the cost of providing any of these goods and services for the employer if they are only required for the employees to carry out their work,
- accommodation services at a place of work which cannot be used by the households to which the employees belong,
- accommodation provided free or at reduced rent by the employer to the employees as the main residence of the household (the imputed value of the accommodation provided free or at reduced rent is included under "Imputed rent" (HY030G)),
- accommodation provided free or at reduced rent to an employee as the secondary residence of the household,
- allowances paid to employees for the purchase of tools, equipment, clothes, etc. needed exclusively or primarily for their work,
- special meals or drinks necessitated by exceptional working conditions,
- any goods or services provided to employees at the place of work or required because of the nature of their work (e.g. a medical examination required for work).
Commission Regulation (EC) No 1980/2003 of 21 October 2003 implementing Regulation (EC) No 1177/2003 of the European Parliament and of the Council concerning Community statistics on income and living conditions (EU-SILC) as regards definitions and updated definitions