As from 2024, the procedure for the deduction of the holiday certificate will change. The deduction of the single holiday pay will from now on be processed in 2 phases.

1. Background Belgian holiday legislation and deduction of holiday pay

According to the Belgian legislation on holidays, an employee accrues holiday rights based on his professional performance in the preceding calendar year. The calendar year during which the employee takes his holidays is referred to as the holiday year. The preceding calendar year, during which the entitlement is accrued, is referred to as the holiday reference year. These holiday rights include an entitlement to paid holidays (“single holiday pay”) and the annual additional holiday allowance (“double holiday pay”).

For example, based on the employment in 2023, an employee will accrue such a holiday entitlement for calendar year 2024.

2. Set-up until holiday year 2023

Because of this particular set-up, when a white-collar employee changes employer, he will receive “departure holiday pay” from his previous employer. This departure holiday pay includes an “advance” payment of the holidays accrued but not yet taken and the accrued double holiday pay. This may concern the current holiday year as well as the next holiday year.

The previous employer will provide the employee with a holiday certificate, detailing the amounts of the departure holiday pay. The employee will subsequently hand over the holiday certificate to the new employer. The new employer will grant the employee paid holidays and double holiday pay but will also deduct the departure holiday pay as paid out by the previous employer.

Until now this deduction was processed in one go, usually in the month of May of June. Often this resulted in a very low net salary for the employee in the month of deduction, which was disadvantageous to the employee and in some cases, contrary to the Remuneration Protection Act of 12 April 1965.

3. New procedure as from 2024

Only the procedure for the deduction of the single holiday pay will change.
The method for the deduction of the double holiday pay will not change. The calculation and deduction of the double holiday pay will still happen in one go in the month in which the employee takes his main holiday (in practice this is usually processed in May or June).

This change only affects white-collar employees. There is no change for the holiday payment for blue collar employees as they receive their holiday pay directly from the competent Holiday Fund.

For an employee changing status from blue collar employee to white collar employee, the new rules will also be applicable.

As from 2024 the holiday attestation deduction will be processed in 2 phases.

Phase 1: each time an employee takes a holiday

Each time an employee takes a holiday with his new employer but accrued with the previous employer, the employee will receive his normal monthly salary but with a deduction of 90 % of the fixed salary for the holiday(s) taken during that month. In other words, the employee will receive only 10 % of his fixed salary for the holidays taken in that month.

Phase 2: December (or at the end of the employment contract)

In December (or at the moment of departure, if the employee leaves in the course of the year) the final settlement of the single holiday pay will be made. This final settlement will take into account the amounts of the single holiday pay of the holiday certificate but will also consider the amounts that have already been deducted in the course of the year when the employee has taken holidays (i.e. deduction of 90%).

The result of the final settlement can be a reimbursement or a deduction.

Previously, the deduction of the amounts of the holiday certificate was limited to the level of the current salary with the new employer. This rule is maintained in the new regulation.

4. Example of the new rules

An employee works full time with employer A from 1 January to 31 December 2023. On 1 January 2024 he starts working full time with employer B.

Employer A

During 2023, the employee earned a total annual gross salary of € 57.200. Upon departure, he has received the following departure holiday pay from employer A:

• Single holiday pay: € 4.387,24 (= € 57.200,00 x 7,67 %)
• Double holiday pay: € 3.889,60 (= € 57.200,00 x 6,8 %)
• Additional double holiday pay: € 497,64 (= € 57.200,00 x 0,87 %)

The holiday certificate includes the above amounts and is handed over to the employee who provides this document to his new employer.

Employer B

The employee is entitled to take 20 legal holidays in 2024 with employer B based on his employment in 2023 with employer A.

The fixed monthly salary of the employee with employer B is € 4.800,00

The employee will take:

• 4 holidays in March
• 10 holidays in August
• 6 holidays in November

Phase 1:

• March: 4 holidays taken (21 working days in March)

The employee will receive his fixed monthly salary of € 4.800,00, but with a deduction of € 822,86 (= € 4.800,00 / 21 days x 4 holidays x 90%)

• August: 10 holidays taken (22 working days in August)

The employee will receive his fixed monthly salary of € 4.800,00, but with a deduction of € 1.963,64 (= € 4.800,00 / 22 days x 10 holidays x 90%)

• November: 6 holidays taken (21 working days in November)

The employee will receive his fixed monthly salary of € 4.800,00, but with a deduction of € 1.234,29 (= € 4.800,00 / 21 days x 6 holidays x 90%)

Phase 2:

In December, the employee will receive his fixed monthly salary of € 4.800,00

The single holiday pay according to the holiday certificate amounts to € 4.387,24

During the year, € 4.020,79 has already been deducted (€ 822,86 in March, € 1.963,64 in August, € 1.234,29 in November).

Final settlement: the remaining amount of € 366,45 (= € 4.387,24 minus € 4.020,79) still needs to be deducted in December 2024.

5. Information to the employee

The new law envisions that the employee should be informed clearly about the departure holiday pay and the way in which it will be deducted with the new employer:

• The new rules have to be mentioned clearly on the holiday certificate;
• At the request of the employee, the employer has to provide the employee with a clear overview of the calculation of the final settlement;
• Via the monthly pay slip of December (or month of departure) the employer has to inform the employee of the reimbursement or deduction made.

The necessary mentions will be added to the holiday certificate and the monthly pay slip (if necessary).

Action points

In order to enable us to apply the new legislation, we need the holiday certificates of the previous employer for the employees who have started in 2023 and 2024. Your Payroll Business Partner will contact you if we are still missing holiday certificates for the employees who have started in 2023 and 2024.

Going forward, when a new employee starts his employment, please provide us with holiday certificate at the start of the employment.

In our newsletter of 26 April 2022, we informed you about the modifications in the mobility budget. In the meantime, additional modifications have been implemented, which we would like to explain to you in this newsletter.

What exactly does “mobility budget” refer to again?

The mobility budget is the possibility offered by the employer to its employee to exchange the company car or the entitlement to a company car for a budget. The employee can spend the budget as he wishes in 3 pillars, taking into account the offer provided by the employer in those pillars.

What’s changing?

1. Calculation of the budget

The principle of the mobility budget is that the company car which is being exchanged or to which the employee is entitled corresponds to an annual budget, namely the actual yearly employer cost of this company car (Total Cost of Ownership, “TCO”).

Until recently, there was no legal provision to calculate this TCO. This has now changed because of the publication of a Royal Decree, which determines the calculation of this TCO.

As of 1 January 2024, employers can choose between calculation methods:

• Based on actual costs. The Royal Decree lists the costs that the employer can include in the calculation of this annual cost based on an actual costs.
• On a lump-sum basis. There are two options in this case: a formula for the leased car based on the leasing cost and another for the car purchased by the employer based on the catalogue value.

The employer who chooses a particular method must wait 3 years before he can make another choice. Please note: if the employer chooses a different method, this will apply to employees who enter the system from that date onward. Existing agreements remain valid in the existing system. The method chosen must be applied to all employees of the company.

It is still possible – as was the case before – to use a reference vehicle which will apply to the function category to which the employee belongs.

This clarification of the TCO calculation applies both to the calculation of the available budget as well as to the costs of the car in pillar 1. An employer could therefore opt for 2 different formulas: for example, the lump-sum value for the mobility budget and the actual costs for the car in pillar 1.

2. Full amount on the virtual account of the employee

Starting from 1 January 2024, the employer will make the entire mobility budget available to the employee on a mobility account, and will no longer deduct the amount in pillar 1 (environmentally friendly car) first.

3. Other modifications

Besides the modification to the calculation of TCO mentioned earlier, some smaller modifications were also made to the mobility budget.

We briefly explain them below:

• Pillar 2 provides for the use of various sustainable means of transport. This entire pillar will now be able to be used in the European Economic Area (EEA). Thus, in the EEA, it will not only be possible to use public transport, but also taxis, rental cars, etc.
• As from 1 January 2024, the minimum threshold of 3.000 EUR and the maximum threshold of 16.000 EUR will be indexed annually. In 2024, the thresholds will be 3.055 EUR and 16.293 EUR respectively.
• It was already possible to include management costs in the mobility budget. This does not change, but where they were previously included in pillar 1, they will be part of pillar 2 from 1 January 2024. As a direct consequence, they will now be fully exempt.

Point of action: in the context of the employees’ desire for flexibility as well as a more eco-friendly mobility policy, the extensive mobility budget can be an interesting solution for you. Do not hesitate to contact us for more information.

Employees who use their own car to travel for professional purposes, can receive a reimbursement from their employer for the costs incurred.

It is not necessary to be able to prove the exact amount of these costs as the authorities have fixed a maximum lump sum per kilometre that is accepted as a cost proper to the employer (“mileage allowance”). This mileage allowance is exempt from social security contributions and taxes if the maximum amount per kilometre is not exceeded.

The new amount applicable starting from 1 January 2024 until 31 March 2024 is € 0.4269 per kilometre.

As a reminder: the amount that was applicable from 1 October 2023 until 31 December 2023 was € 0.4259 per kilometre. Note that there is an increase compared to the previous amount.

However, it is alternatively possible to opt for the annual indexation of the mileage allowance. An employer can therefore choose between the quarterly or the annual indexation, which amounts to € 0.4280 per kilometre for the period from 1 July 2023 to 30 June 2024. In the latter case, the employer should thus maintain the same amount during the entire period.

We reiterate that the number of kilometres per year should not be abnormally high (max. 24,000 kilometres per year). If the number of kilometres is higher, proof must be furnished.

The quarterly and yearly indexed amounts are maximum amounts. Employers can reimburse the driven kilometres at a lower rate without any discussion. A higher reimbursement is also possible, but in that case, the burden of proof lies with the employer and the employee. They should be able to prove that the allowance granted is in line with the actual cost.

The wage norm (= the maximum wage cost development) is set every two years and determines the maximum increase of the salaries in Belgium and at the same time functions as a kind of framework for the biennial wage consultations in the sectors and companies.

For 2023 – 2024, the maximum margin for wage cost development has been set at 0%, which means that wages cannot increase on top of indexations and scale increases. However, not all salary elements are taken into account. In this newsletter, we would like to highlight the possibility to grant employees a non-recurring, result-related bonus or a profit participation bonus. Neither of these bonuses are taken into account for the wage norm. In other words: you can grant these bonuses even when the salary cost in your company may not increase any further.

The non-recurring, result-related bonus

The Belgian legislation foresees in a collective bonus system linked to the results of the company which benefits from a favourable tax treatment. The legal basis for this bonus is collective labour agreement n° 90.

What are the advantages of this bonus?

The CLA 90 bonus is not subject to withholding tax, is tax deductible as a business expense and is not taken into account for example for the calculation of the indemnity in lieu of notice and the holiday pay. It is however subject to a special employer’s contribution of 33% for social security purposes and a solidarity contribution of 13.07% for the employee.

Is there a maximum amount which can be allocated?

Yes, the benefit cannot exceed a certain threshold, that is adjusted to the cost of living on a yearly basis:

• Social threshold = € 4.020 (amount 2024) per employee per calendar year. This amount is subject to a solidarity contribution of 13.07% for the employee.
• Fiscal threshold = € 3.496 (amount 2024) which is exempt from taxes.

What conditions need to be fulfilled for granting the bonus?

• It’s a collective benefit, subject to achieving certain collective results or goals that have been determined in advance;
• The results or objectives must apply to a company, a group of companies, or a well-defined group of employees;
• The results or objectives must be clearly outlined, transparent, determinable/measurable and verifiable. In practice, we notice that objectives linked to numbers (control based on accounting documents) are particularly accepted. Examples of objectives are: achieving a certain turnover during the reference period, decreasing the error range, decreasing the complaints from customers, the increase of the number of clients, …
• At the time of introducing the bonus plan, it should be uncertain whether the results or objectives will be achieved;
• The bonus plan should meet certain formalities, such as drafting an act of adhesion or concluding a collective labour agreement. A mandatory template document must be used. Pro-Pay can assist you in completing this form correctly.

! If you wish to draw up a plan for the entire calendar year 2024, this plan must be submitted to the Ministry no later than April 30, 2024.

The profit participation bonus

This bonus allows a company to grant a part or the full amount of the profit gained by the company to the employees and benefits on tax and social security level from a favourable treatment. It has a collective nature, just like the non-recurring result-related bonus.

What are the advantages of this bonus?

This bonus is not subject to employer’s contributions for social security purposes. The employee will pay 13.07% as a solidarity contribution and will taxes at a flat rate of 7%.

Is there a maximum amount which can be allocated?

There is no maximum amount as such provided for by the law, but the total amount of the bonuses may not exceed 30% of the total wage mass of the concerned fiscal year. Please note that the profit participation bonus is not deductible as a business expense for corporate taxes.

What conditions need to be fulfilled for granting the bonus?

• The company is subject to corporate taxes or to taxes for non-residents in Belgium;
• The allocation is only possible based on (part of) the profit;
• If the employer grants an identical amount or percentage to all employees, the only formality is a decision of the General Assembly and a written notification by the employer;
• If the employer wishes to grant different bonuses to different categories of employees, an act of adhesion or a collective labour agreement on company level will be required;
• The employer can determine that employees who have been dismissed because of a serious cause and/or employees who have resigned and have left the company during the course of the fiscal year, are excluded from receiving this bonus;
• The employer can also take into account the working percentage of the employees and exclude certain periods of inactivity of the employees during the fiscal year.

Which bonus to offer your employees?

Which premium is best for your employees, depends on what it is you wish to reward exactly.

Would you like to link the bonus to the achievement of certain goals or rather not? Would you like to reward all employees or just one certain category? Or maybe you’d like to combine both bonuses? Even that is possible.

If your company is not subject to corporate taxes or taxes for non-residents in Belgium, the allocation of the new profit participation bonus is not possible. Introducing a non-recurring result-related bonus on the other hand remains a possibility.

Do not hesitate to contact us if you need additional information or if you need assistance through legal@propay.be.

In this newsletter, we inform you about various recent and upcoming changes in Belgian employment legislation.

New training rules – update

Individual training right – Since the labour deal in 2022, an individual training right has been introduced in Belgium. The number of individual training days per full-time employee is at least 5 days per year starting from 2024 for companies as of 20 employees. A lower number can be established through a collective labour agreement (cla) at sector level, but the minimum is 2 training days per year. Companies with 10 to less than 20 employees must allocate at least 1 individual training day per year per full-time employee. For companies with fewer than 10 employees, there is no individual training right. Sectors may provide for fewer training days or establish a growth path, so always carefully review the rules at the level of your sector.

Annual training plan – Companies with at least 20 employees must prepare an annual training plan by 31 March each year. This plan provides employees with an overview of the training programs offered by the employer and includes the target groups for each of the various training sessions. This plan includes a list of both informal and formal training sessions. Employers can use their own template, but some sectors also provide for a template model. Of course, we can also provide you with a template if needed. You can find more information in our training newsletter.

Federal Learning Account – NEW – To assist employees in managing their individual and sectoral training rights, the federal government has developed the Federal Learning Account, which will enter into effect no later than 1 April 2024.

The Federal Learning Account is a digital application that provides employees with an overview of the total number of training rights, training credits, attended training days, completed training sessions, etc., accessible through www.mycareer.be (this website is still under construction).

The employer is obligated to update and record the data in the Federal Learning Account, which entails administrative responsibilities. Thus, the employer will need to inform employees about the existence of the Federal Learning Account, ensure that training sessions are consistently recorded, and verify general information.

We will certainly keep you informed about the details and future operation of the Federal Learning Account in an upcoming newsletter.

Resignation by the employee: always a notice period of maximum 13 weeks

In case of resignation by the employee, the notice period under the new Single Employment Status Act since 1 January 2014 was as a rule maximum 13 weeks. There were still a few exceptions to that rule. Due to transitional legislation, there were certain differences between the notice periods for employees who started working before and after 2014. Furthermore, the so-called “higher” and “highest” white-collar workers, in some cases, had to respect a notice period of more than 13 weeks when resigning.

The legislator has now eliminated the differences between the employees’ notice periods: for employees who terminate their employment contract as from 28 October 2023 onwards, the notice period is maximum 13 weeks.

Note that the rules regarding notice periods for termination by the employer remain unchanged. For employees who started working for an employer before 2014, the notice period is still calculated in two parts.

Trusted person mandatory from 50 employees

The trusted person is an important point of contact for employees in case of issues related to psychosocial risks at work, including bullying, sexual harassment, aggression, stress, conflicts, etc.

The appointment of a trusted person in a company was not mandatory before, unless requested by all members representing the employees in the committee for prevention and protection at work.

Since 1 December 2023, appointing a trusted person is mandatory for companies with 50 or more employees. The number of employees is determined based on the number of calendar days on which each employee is registered in the personnel register (=N) over the past 4 quarters, divided by 365.

For companies with fewer than 50 employees, this remains mandatory only if there is a request from the union delegation or, if there is none, from the employees.

The trusted person must be part of the staff, except in certain specific cases where the company has fewer than 50 employees (and where the appointment is not mandatory).

Do not forget that every newly appointed trusted person must undergo at least five days of training within two years of their appointment.

Granting of purchasing power premium until 31 March 2024

Companies that have achieved good results during the crisis can grant a one-time purchasing power premium in the form of consumption vouchers.

Originally, it was stipulated that this purchasing power premium had to be granted no later than 31 December 2023, to qualify for social security and tax exemptions.

Some sectors have already decided to grant a purchasing power premium, but generally, the purchasing power premium is not a popular measure among companies. To encourage its allocation and provide companies with more time, it has been decided that the purchasing power premium can be granted until 31 March 2024.

Note that the decision to grant it must be made by 31 December 2023, and should be included in a collective or individual agreement concluded by 31 December 2023.

Expansion of flexi-jobs

The flexi-job system was introduced in 2015 to provide employees working at least 4/5th or retirees, with the opportunity to have additional, tax-friendly, sideline activities under strict conditions. Flexi-jobs were initially limited to specific sectors (JIC 302, 201, 312, 314, 118.03 (specific NACE code), 330 (specific NACE code), 223, 303.03, 119, 202, 202.01, and JIC 311).

These sectors will be expanded from 2024 as follows: JIC 112, JIC 118.03, JIC 118.07, JIC 118.08, JIC 118.09, JIC 118.10, JIC 118.11, JIC 118.12, JIC 118.14, JIC 118.21, JIC 118.22, JIC 132, JIC 140.01, JIC 140.05, JIC 144, JIC 145, JIC 200 (limited to NACE code 85.531 – main activity driving schools), JIC 320, and JIC 323. The event sector and sectors that employ lifeguards will also be able to use the flexi-job system under certain conditions.

The conditions for flexi-jobs are also becoming stricter. Starting next year, the flexi-salary will be aligned with the salary scale in the respective sectors (except for the hospitality sector). Furthermore, the special employer’s contribution on the flexi-salary and the flexi-holiday pay will increase from 25% to 28%.

Non-retired flexi-jobbers are not allowed to earn more than 12,000 EUR per year: the part of the flexi-salary above this annual amount will be taxed as regular salary.

Several anti-abuse measures are also being introduced. It will no longer be possible to work at least 4/5th for one company and simultaneously work as a flexi-job employee for an affiliated company. Persons switching from full-time to a 4/5th employment will now be allowed to take up a flexi-job only after 6 months (3rd quarter after the switching).

New increase of home office allowance as from December 2023

Employees who work from home on a structural and regular basis can receive a lump-sum reimbursement from their employer. The maximum amount of this allowance increased on 1 December 2023 from 148.73 EUR per month to 151.70 EUR per month. This amount is a maximum amount and is exempt from social security contributions and taxes.

We would like to remind you that a written agreement must be drawn up for teleworkers, in principle at the latest when the employee starts teleworking.

It is also possible to grant other expense reimbursements for homework. You can find more information about this in our previous newsletter on homework.

If you have any questions regarding any of the above topics, feel free to contact us at legal@pro-pay.be.

Each year in January, the salaries are adjusted to the cost of living for employees of companies subject to Joint Industrial Committee 200 (JIC 200). In Belgium, this is referred to as the indexation of salaries.

This indexation is a mechanism whereby salaries are linked to the evolution of the flattened health index. The monthly salary is more specifically increased by a percentage equal to the inflation rate of the previous calendar year. The indexation system as foreseen by JIC 200 is applicable to all employees falling under the scope of this Joint Industrial Committee.

The final percentage of indexation amounts to 1.48%. This implies in practice that the gross salaries will be increased with 1.48% as from 1 January 2024 onwards.

This also entails that the yearly premium that needs to be paid in June 2024 (if not replaced by an equivalent benefit), will amount to 312.50 EUR.

“New” employers in Belgium who hired a first employee, benefit from a partial reduction from social security contributions during the entire period of employment of this first employee. This is called the ‘target group reduction first hiring’.

This target group reduction used to be an almost full exemption of the social security contributions for the employer but has been reduced in 2022 to maximum € 4.000 per quarter.

As from 1 January 2024, this exemption will be reduced again: the capped exemption for the reduction for first employees will be lowered again and the exemption will be limited to the first three new employees.

Reminder of the concepts

Just to reiterate that a new employer is an employer who has never been subject to Belgian social security, or who has not been subject to it for at least 12 consecutive months preceding the starting date of the first employee. Moreover, the company may not belong to the same so-called ‘technical business unit’ with another company.

The term ‘technical business unit’ is also explicitly defined. Two or more companies form a technical business unit together if there is a social link (at least one common person in the companies) and if there is a socio-economic interdependence (this is assessed on the basis of activities, location, clientele, material, personnel management, etc.).

Changes

1. Capped exemption

The employer’s contribution for social security amounts to approximately 25% of the gross salary for a white-collar worker in Belgium (depends on the competent joint industrial committee). As from 1 January 2024 the amount of the reduction for the first hiring will be capped at € 3.100 per quarter. This target group reduction may still be applied unlimited in time.

Attention, no transition period is foreseen in the new regulation. This new capped amount is applicable for new hires as from 01.01.2024 as as for current reductions for first hirings.

In practice, the new scheme only affects gross monthly wages of at least € 4.133 a month. For a white-collar worker who earns a maximum of € 4.133 gross per month, the employer will not have to pay social security contributions. For white-collar workers with a higher gross monthly salary, the employer will have to pay social security contributions on the part exceeding the exemption of € 3.100. The following example will make this clear.

Example: A white-collar worker earns € 4.133 gross per month. This is € 12.399 per quarter. We subsequently take 25% of 12.399. This is 3.100. The first € 3.100 is exempt from social security contributions.

! If you have an employee with a target group reduction first hiring, you do not have to take any action yourself. We will automatically calculate the capped exemption for you. If the salary of the employee, for whom you currently benefit the target group reduction, exceeds the salary cap of € 4.133 gross per month, take into account that your salary costs will increase.

2. Second to sixth hiring

Employers are currently entitled to a target group reduction for the first 6 hired employees. The target group reductions for the second to the third hirings remain unchanged. For these employees, the employers benefit from a lump-sum reduction that is valid for a fixed period.

On the other hand, the target group reduction for the fourth to sixth hiring will disappear. This abolition applies to new hirings from 1 January 2024 and does not apply to current reductions.

Overview

Finally, we give a brief overview of the target group reductions from 1 January 2024 onwards. The following amounts are exempt from social security contributions on the employers’ side.

Foreign employees who are not European Economic Area (EEA) citizens need a work permit or a single permit to work on the Belgian territory, unless they are exempt from this requirement.

The authority to grant a work permit or a single permit has been regionalized and each region can determine its own conditions to grant a work permit/single permit. They therefore also each determine the salary conditions that may apply to grant a work permit/single permit in their respective region (Brussels-Capital Region, Walloon Region and Flemish Region).

As from 1 January 2024 the following minimum gross salary limits will apply for the category of highly qualified staff, executives who want to work in Belgium and the employees who want to apply for an European blue card:

In addition to these salary limits, other conditions must additionally be met in order for the employee to qualify for a work permit/single permit.

Do not hesitate to contact our legal department for more information on immigration at the following e-mail address: legal@pro-pay.be.

The social dialogue in Belgium is organized on 3 levels: inter-sectoral/federal, sectoral and company level. Over the past months, the wage norm and several employment measures which serve as the basis for the negotiations on a sectoral level, have been determined on a federal and inter-sectoral level.

Within JIC 226 these negotiations have been finalized, which resulted in a sectoral agreement for the years 2023 – 2024. Hereby we would like to provide you with an overview of the most important decisions for the next two years in your sector of industry.

Purchasing power premium

The employees of companies that have made high or exceptionally high profits in 2022 will receive a one-time purchasing power premium.

1. Eligibility conditions and amounts

High profit: A company has made a high profit in 2022 if the percentage growth in profit (code 9905) for 2022 compared to the average profit (code 9905 of the annual account) for the years 2019, 2020 and 2021 does not exceed 150%.

Companies with a high profit must grant the following purchasing power premium:

• € 50 if the percentage growth in profits is less than or equal to 10%;
• € 150 if the percentage growth in profits is higher than 10%, up to and including 50%;
• € 300 if the percentage growth in profits is higher than 50%, up to and including 100%;
• € 450 if the percentage growth in profits exceeds 100%, up to and including 150%.

Exceptionally high profits: A company has made exceptionally high profits (code 9905) in 2022 if the percentage growth in profits for 2022 compared to the average profits (code 9905) for the years 2019, 2020 and 2021 exceeds 150%.

Companies that have made exceptionally high profits must grant the following purchasing power premium:

• € 600 if the percentage growth in profits exceeds 150%, up to and including 200%;
• € 750 if the percentage growth in profits exceeds 200%.

If the available profit (code 9905) in companies whose growth percentage does not exceed 10% is insufficient to grant the amount of € 50 per employee, the purchasing power premium is not granted.

If the available profit (code 9905) is insufficient to grant the other amounts determined above, the purchasing power premium is granted in proportion to the available profit.

The year 2022 refers to the financial year of which most months are in 2022. If the financial year ends on 30 June, it is the financial year ending in 2022 that will be taken into account.

2. Payment modalities

The payment of the purchasing power premium will be done no later than 31 December 2023.

Employees must be employed on 31 October 2023 to be entitled to the purchasing power premium. Your Payroll Business Partner will take into account the pro rata and assimilations provided for in the CLA.

A company wishing to grant another amount than the ones set out above may do so (up to € 750) by means of a collective labour agreement at company level. However, a justification must then be added to the collective labour agreement at company level stating that the company has achieved good results during the crisis. In the absence of a union delegation, the purchasing power premium can be granted via an individual agreement. This agreement must be concluded by 15 November 2023 at the latest.

Action point: inform your Payroll Business Partner about the amount of the purchasing power premium.

Mobility

From 1 January 2024, the following increases in commuting will apply:

• The bicycle allowance increases to € 0.27 per kilometre. The maximum daily allowance is increased to € 10.80.
• The employer’s contribution to private transport other than bicycle will be indexed.
• The employer’s contribution to public transport will amount to 100% of the ticket price, unless a third-party payment scheme applies, in which case the current 80% contribution will be maintained.

Training

The employer needs to offer the employees a mandatory number of individual days of training, depending on the number of employees in the company:

– For companies with less than 20 employees, an average of 1 individual training day per year for a full-time employee applies;
– For companies with more than 20 employees, a growth path applies from 2024:

• From 2023: 2 individual training days;
• From 2025: 3 individual training days;
• From 2027: 4 individual training days;
• From 2029: 5 individual training days.

In addition to individual training days, employees are also entitled to collective training days:

– For the period 2023-2024: 6 days of training on average per full-time employee;
– For companies with more than 20 employees, the number of days will gradually decrease after 2023-2024:

• 2025-2026: 4 training days on average;
• 2027-2028: 2 training days on average.

These trainings are paid at the same rate as public holidays, even if they take place outside working hours.

Time credit with a motive, ‘end of career’ time credit and unemployment scheme with company allowance

All existing schemes of time credit with a motive and unemployment with company allowance are extended until 30 June 2025.

Regarding the ‘end of career’ time credit, with an allowance from the National Employment Office, the age limit is raised to 55 for employees who reduce their working time to half-time or 1/5th.

Conversion of end-of-year premium

From 1 January 2024, it will be possible to convert half of the end-of-year premium into days off or into a (green) mobility benefit.

This conversion must be provided for in a collective agreement at company level and laid down in an individual agreement with the employee.

The social dialogue in Belgium is organized on 3 levels: inter-sectoral/federal, sectoral and company level. Over the past months, the wage norm and several employment measures which serve as the basis for the negotiations on a sectoral level, have been determined on a federal and inter-sectoral level.

Within JIC 209 these negotiations have been finalized, which resulted in a sectoral agreement for the years 2023 – 2024. We would like to provide you hereby with an overview of the most important decisions in your sector of industry.

Purchasing power premium

The provisions regarding the purchasing power premium, are in principle limited to the scaled and scalable white collar workers. The scope of application can be extended to the non-scaled and the non-scalable white collar workers according to a specific procedure depending on whether or not the company has a labour union delegation.

Below we discuss the conditions, amounts, granting modalities and calculation modalities of the purchasing power premium. Please verify these with your accountant to know whether your company should grant the purchasing power premium.

1. Eligibility conditions and amounts

Companies that have made high or exceptionally high profits in 2022 must grant a one-time purchasing power premium to their employees in the form of consumption vouchers. The consumption vouchers are valid until 31 December 2024 and can be used to purchase food or products and services of an ecological nature (similar to meal vouchers and eco vouchers).

High profit – A company has achieved a high profit in 2022 if the “ROA” based on the annual account of the financial year 2022 is 3% or more. ROA means Return on Assets, being the operating profit (code 9901 of annual account) divided by the total balance sheet (code 10/49 or 20/58).

Companies with high profits, should grant the following purchasing power premium:

• € 200 if the ROA in 2022 is 3% or more (minimum condition);
• € 350 if the operating profit (code 9901) of the annual account of the financial year 2022 is at least 15% higher than the average operating profit (code 9901) for the financial years 2018-2019-2020-2021;
• € 500 if the operating profit (code 9901) of the annual account of the financial year 2022 is at least 25% higher than the average operating profit (code 9901) for the financial years 2018-2019-2020-2021;

Exceptionally high profit – A company has achieved an exceptionally high profit in 2022 if:

• The ROA based on the annual account of financial year 2022 is 3% or more.
• The operating profit (code 9901) of the annual account of the financial year 2022 must be at least 50% higher than the average operating profit (code 9901) for the financial years 2018-2019-2020-2021.

In this case, the purchasing power premium is € 750.

Cap – The total cost of all employees’ purchasing power premiums cannot exceed 33% of the company’s operating profit (code 9901) for the financial year 2022. If necessary, the amount should be prorated.

2. Calculation modalities

The parameters (ROA and code 9901) are checked at the level of the annual account (legal entity).

In calculating the average, an operating loss in a given year equals to 0 in the numerator and is counted as a year in the denominator. Example: 2 years with operating profit (2018: +100 and 2019: +100) and 2 years with operating loss (2020: -100 and 2021: -100) gives the following result (100 + 100 + 0 + 0) /4 = 50.

When the financial year does not coincide with the calendar year, the annual account of the financial year with the most months in calendar year 2022 is taken into account (and likewise for other financial years in the reference period 2018-2021).

When the financial year ends on 30 June, the annual account of the financial year ending in 2022 is taken into account (and likewise for other financial years in the reference period 2018-2021).

When a financial year has more than 12 months, it is assimilated to a 12-month financial year in the calculation method (reference period for applying the amounts is then 4 financial years prior to the 2022 financial year).

Where annual accounts are not available for each year of the 2018-2021 period, the average is calculated based on the available annual accounts.

3. Payment modalities

The payment of the purchasing power premium will be done no later than 31 December 2023.

Employees must be employed for at least 1 month on the date of payment, and they must also be employed on the date of payment itself.

The amounts are granted pro rata to the employee’s average employment in the period between 1 October 2022 and 30 September 2023.

An employee who entered into service after the above reference period (between 1 October 2022 and 30 September 2023), has at least one month of seniority and is still employed at the time of payment of the purchasing power premium, will receive a lump-sum payment of one-twelfth of a purchasing power premium.

4. Opting-out

The employer and the trade union delegation may agree not to apply the sectoral regulation on the purchasing power premium and can provide for a company-specific purchasing power premium instead.

In the absence of a union delegation, the employer shall decide with the agreement of the majority of the white collar workers. The agreement on this opting-out and the company-specific benefit must be the subject of a collective agreement concluded at company level by 31 October 2023 at the latest. In this collective agreement, a justification should be added that one is a company where good results were achieved during the crisis. In the absence of such a collective agreement, the sectoral regulation on the purchasing power premium will apply.

Action point: inform your Payroll Business Partner about the amount of the purchasing power premium at the latest with the December payroll. Please also inform us if you will replace the purchasing power premium with a company-specific benefit.

Mobility

From 1 January 2024, the following increases in commuting will apply:

• The bicycle allowance increases to € 0.27 per kilometer. The maximum daily allowance is increased to € 10.80.
• The employer’s contribution to the basic amount per kilometer and to the minimum and maximum amount per day for private transport other than bicycle and public transport increases by 12.5%.
• In JIC 209, the amounts set by the National Labour Council’s collective labour agreement 19/9 were taken into account for the employer’s contribution in public transport until now. These amounts remained unchanged since 1 July 2017. In JIC 209, these amounts as set by the collective labour agreement 19/9 will be increased by 12.5% (as an anticipation of future increases in the contribution provided for in collective labour agreement 19/9).

Companies are recommended to make use of the third-party payer agreement.

Minimum salary

The sectoral guaranteed minimum monthly salary will be increased by € 85 as from 1 January 2025.

Training

The transferable individual training right of the full-time employee will be increased from 24 to 32 hours per year from 2024, to 36 hours per year from 2025, and to 40 hours per year from 2026.

Unemployment scheme with company allowance and ‘end of career’ time credit

All existing schemes of unemployment with company allowance are extended until 30 June 2025.

The 1/2nd and 1/5th ‘end of career’ time credit from 55 years with allowances for a long career and strenuous professions will be extended till 30 June 2025.

Career-related leave

Employees will get a third day of career leave from the age of 60 (in addition to the already existing 2 days from the age of 50 and 58).

Conversion of end-of-year premium into other benefits

If the end-of-year premium is at least a full monthly salary, the option is created to convert a part of the end-of-year premium into days off or to use it for bicycle leasing under the following cumulative conditions:

• Maximum half of the end-of-year premium may be used.
• A collective agreement must be concluded at company level.
• The employee must voluntarily give his individual agreement on top of the company collective agreement.
• The conversion may not entail any cost savings for the employer (cost neutrality).
• Prior information will be given to employees on the consequences of converting the end-of-year premium.

The new regulation already applies to end-of-year premiums from 2023.

Eco vouchers

The option is created to convert eco vouchers to another benefit no later than 31 October 2023.