Video Series on Alternative Remuneration in Belgium – Video 4 / 8 : Additional social security

4 August 2016

In this video series on alternative methods of remuneration in Belgium we at Besox want to support you as employer to optimize your payroll.

Video 4 : Additional social security

As an employer in Belgium you can also grant your personnel additional social security, an overview of the 9 most known social securities

  • Extra legal child benefits

If the employee enjoys social security benefits for his child you may grant him 50 € per month per child in extra legal child benefits. For the employee this is exempt from social security but taxable.

You are not obliged to grant this to all members of personnel, you can decide individually. It is exempt from social security and dedcutible.

  • Child birth allowance

You can grant an allowance of 50 € as a result of the birth of a child as a supplement to the legal maternity fee, for the employee this is exempt of social security but taxable.

This advantage is exempt from social security but is non-deductible.

  • Child care

The employer can insure themselves for ‘home child care’. In case the child becomes ill or the parents are hospitalised, the insurance company will provide home child care at their expense.

The social security has not yet taken a stance on this advantage but it is non-deductible.

  • Study grants

The employer can award the employee a study grant per child in higher education, it is exempt of taxes if the study grant can be seen as an occasional help and isdirectly given to the child.

This advantage is exempt of social security, if it can be assumed that the study grant is a supplement to the child benefits, but is non-deductible.

  • Group trips

If the employer organises a group trip to improve contact between employees they are not taxed and there is no social security due, if the group trip can be seen as a spontaneous generosity in the event of a special occasion.

This is deductible on the condition that the trip does not take longer than 1 day and the trip is taken by other means than car or minivan.

  • Sports

If you as an employer provide sports facilities within the company this is exempt from taxes & social security yet non-deductible.

If you as an employer intervene in the costs for sports, it becomes subject to taxes and social security but is also deductible.

  • Company restaurant

Employers can offer their employees the possibility to have a meal in the company restaurant. These meals are offered for free or at a lower price than the cost price.

This is exempt from taxes & social security, and if the restaurant is accessible to all employees and you charge more than 1,09 € for a meal, it is also deductible.

If the restaurant is only accessible to executive staff and/or their business relations, the deductible portion is limited to 69%. The costs are completely deductible as professional expense for the company, if the entire cost price is taxed to the buyer as benefit in kind.

  • Extra days of leave

You can always grant your employees extra days of leave in addition to regulatory days of leave, this benefit is subject to taxes and social security, and is deductible.

  • Vaccination

The company can organise vaccinations or intermediate in vaccination costs, this intervention is exempt from taxes and social security yet non-deductible.

For more information contact your payroll advisor.