Video Series on Alternative Remuneration in Belgium – Video 6 / 8 : Bonuses

24 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 6 : Bonuses

Given payroll in Belgium is costly, employers are constantly on the lookout to reward their personnel in a cheaper way.

In terms of recurring annual premiums, there are several options available which are much cheaper than normal gross salary. In this video we give you a handy overview of the cost vs the net:

  • The non-recurring performance-related benefits or in short wage bonus (collective agreement 90)

The wage bonus must be given to all employees or a category thereof on the basis of the company’s performance or the achieving of the predetermined collective goal. The goal is to increase employee motivation through a communal project.

For granting this a bonus plan should be drawn up, and it has to be approved by the social security. If the set targets are not achieved, you can not grant the bonus to your personnel.

The bonus has a maximum of 3313 € gross / year / employee, it is exempt of taxes but subject to social security and is deductible.

  • The Warrant Plan you can grant individually, for this kind of bonus we at Besox have chosen to work together with ING, a trusted name in the financial world.

The warrant plan means that you as employer buy warrants for a certain amount and grant these to one or more of your employees. These employees run a risk for one day on the stock market, and thanks to this risk there is no social security due meaning it is a lot cheaper than a cash bonus.

This bonus is subject to taxes, exempt from social security and is deductible.

  • The innovation bonus is a measure for employers who wish to grant a bonus to their creative employees for bringing forth a new idea which benefits the company.

It has to be an innovation that represents a real added value to the normal activities of the company, the added value may relate to different domains (ie. Technology, economy, productivity, well-being at work) and is applicable to both products, services or work processes.

The amount may not exceed the gross monthly salary, the total amount may not exceed 1% of the salary mass of the company and may be granted up to 10 employees per project.

The bonus applies to a maximum of 10% of the employees, but in a company with fewer than 30 people it may be granted to a maximum of 3 persons.

This bonus exempt from taxes, social security and is deductible

  • An overview of the employee’s net based on a cost of 1000 € :

The innovation bonus : 1000 €
The wage bonus : 650 €
The warrant plan : 450 €
A normal cash bonus : 350 €

For more information contact your payroll advisor.