Changes With Regard To Non-Recurring Result-Linked Benefits

As of 1st April 2011, the procedure to be followed to adopt a bonus plan according to the system of non-recurrent result-linked benefits changes.

This system enables Belgian employers since 2008 to grant a bonus in an advantageous and cost-effective way. Indeed, this bonus is exempted from income taxes and employee social security contributions up to a ceiling of 2.358 EUR (amount applicable in 2011). Moreover, up to this ceiling the employer does not pay the usual employer social security contributions, but a slightly lower contribution of 33%.

The most important modification relates to the new standard documents which must be used when adopting the bonus plan by means of a collective bargaining agreement or a so-called deed of accession.

The adoption of a bonus plan by a deed of accession only remains possible for the employees who are not represented by a trade union delegation. In such case, the draft bonus plan must be submitted to all employees and a consultation term of 15 days must be respected. Once this term has expired, it is still necessary to provide the register with the possible remarks from the employees to the Social Inspectorate, but it is no longer required to obtain a receipt from the Social Inspectorate.

For employers wishing to introduce a bonus plan according to this advantageous system for the calendar year 2011, it is not too late. The plan can enter into force as of 1st January 2011 provided that the bonus plan is submitted to the Federal Public Service Employment at the latest on 29 April 2011.