Author: ibizz

To bring Belgian legislation in line with the case law of the Court of Justice of the European Union, the rules on the concurrence of holidays and suspensions will be adjusted from 2024. In this newsletter, we discuss the new rules and modalities, which will apply when an employee takes these holidays. These changes will take effect only next year and will not impact your employees’ holidays this year.

Concurrence of illness and holidays

When illness and holidays coincide, an employee currently receives only a guaranteed salary if he falls ill before the start of his holiday. If the employee falls ill while on holiday, the principle “first suspension prevails” applies. The absence days remain holidays and the employee cannot take them at another time when he is not sick. The latter is contrary to the European Employment Directive and the case law of the Court of Justice: the Court is of the opinion that sick days are for healing, while holidays are for rest and relaxation.

From 1 January 2024, holidays coinciding with an accident at work or an occupational disease, a regular illness, a regular accident, a maternity leave, a paternity leave, a prophylactic leave, an adoption leave, a foster care leave or a foster parent leave can be taken later in the holiday year. This means that these holidays are no longer lost and are added again to the legal annual leave of the current holiday year. This rule does not apply to all other cases of suspension.

In the specific case of illness, the employee is then entitled to a guaranteed salary for the period of illness.

In order to benefit from these new rules and to be entitled to a guaranteed salary during the holidays in the specific case of illness, the employee will have to meet certain conditions. The employee will have to inform his employer immediately where he will stay during his illness if it is an address other than his home address. He will also always have to provide a medical attestation to the employer within the normal time period applicable in the enterprise, even if this is not explicitly provided for in the working regulations, stating the probable duration of the illness and, for the purpose of control, whether the employee is allowed to move to another location.

Within the same period, the employee who wishes to take his unused vacation days immediately after the ongoing vacation period must communicate this request to the employer. The ongoing holiday period is not automatically extended by the days not taken.

These new modalities should also be included in the working regulations.

Carry-over of untaken holidays

There will also be new rules on the transfer of holidays as from 2024. Currently, legal holidays cannot be carried over to a next holiday year and are lost if not taken. If the reason for not taking holidays is due to the abovementioned absences and they cannot be taken during the holiday year, these holidays must be carried over. Unused holidays in these cases of suspension must be granted within 24 months following the end of the holiday year.

The holiday pay is paid out to the white-collar workers no later than 31 December of the holiday year. Blue-collar workers keep receiving their holiday pay through the holiday fund.

When a white-collar employee leaves the company, the holiday certificate must also state the number of holidays carried over.

Action

! The Royal Decree will apply for the first time for the holiday year 2024, holiday service year 2023.

! The new modalities should be included in the working regulations, without having to follow the specific procedure to amend the working regulations.

Each year in January, 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.

Based on current forecasts, we expect that the indexation percentage for January 2024 will be approximately 1.5%.

We will inform you of the final index percentage by early January 2024 at the latest.

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 October 2023 until 31 December 2023 is € 0.4259 per kilometre.

As a reminder: the amount that was applicable from 1 July 2023 until 30 September 2023 was € 0.4237 per kilometre. Note that there is an increase compared to the previous amount.

However, based on recent changes in instructions from the tax authorities (which have been confirmed by the social security authorities), it is again 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.

As 2023 is gradually coming to an end, we want to provide you with an overview of the Belgian public holidays for 2024, and a reminder of the rules applicable to replacement days.

Public holidays in 2024

New Year’s Day Monday, 1 January 2024

Easter Monday Monday, 1 April 2024

Labour Day Wednesday, 1 May 2024

Ascension Day Thursday, 9 May 2024

Whit Monday Monday, 20 May 2024

Belgian National Holiday Sunday, 21 July 2024

Assumption Day Thursday, 15 August 2024

All Saints’ Day Friday, 1 November 2024

Armistice Day Monday, 11 November 2024

Christmas Wednesday, 25 December 2024

Applicable rules

As a rule, employees cannot work on public holidays in Belgium.

If a public holiday falls on a Sunday or another day which is normally a non-working day (usually a Saturday), it must be replaced by a replacement day on a normal working day. The employer, however, is obliged to pay the employee a normal salary for that holiday. In the list above, the public holidays that fall on a non-working day in the course of 2024, have been marked in bold. Employees are entitled to one replacement day in 2024, for the Belgian National Holiday (21 July).

The law of 4 January 1974 provides for the manner in which replacement days should be determined. In theory, the Joint Industrial Committee competent for each sector may decide when replacement days shall fall, but we do not see this very often in practice. If the Joint Industrial Committee has not taken its decision before 1 October 2023, each company may decide for itself when the replacement days for its employees will fall in 2024. The company may take that decision in one of the following ways:

• By the Works Council;
• If the company has no Works Council, by agreement between the union representatives and the employer;
• If the company has a Works Council nor union representatives, by agreement between all the employees and the employer;
• If no agreement can be reached for the whole company, individual agreements may be drawn up between the employer and each employee.

If replacement days cannot be decided upon using one of the solutions above, they automatically fall on the next normal working day following the public holiday (usually a Monday).

Employers must inform their employees of the replacement days for 2024 by displaying a signed and dated document on the company premises before 15 December 2023. You can obtain a template of such a document from your payroll business partner.

During the COVID-19 pandemic, teleworking gained popularity. Many employees returned to their home country to telework from there. Although the crisis is now behind us, we all continue to telework. One sometimes forgets that this changed situation could have had a significant impact on the social security system applicable to the employees concerned, in the light of European Regulation 883/2004. To avoid a switch in the applicable social security system, certain Member States have taken measures together.

Principle

The European Regulation 883/2004 lays down the following rules regarding the Member State in which social security contributions must be paid:

• the employee working in a Member State is subject to the social security legislation of that Member State (except in the case of posting);
• an employee who normally performs work in two or more Member States is subject to the social security legislation of the Member State of residence if he performs a substantial part of his work there, which is at least 25% of his work.

Transition period: COVID-19 pandemic

During the COVID-19 pandemic, Member States decided to neutralise the period of teleworking during the COVID-19 pandemic when calculating the 25% threshold. This effectively avoided a possible change in the applicable social security system and its consequences. In practice, a fiction was applied that employees were still working from the state where they worked before the COVID-19 pandemic, when in reality this was not the case. This tolerance was applicable until 30 June 2023.

What happened as of 1 July 2023?

Given the significant increase in telework, there was a real risk that the applicable social security system would change if employees continued to telework from their country of residence, thus exceeding the 25% threshold.

A European framework agreement was therefore created to prevent employees (and employers) from having to switch to another social security system. This framework agreement came into force on 1 July 2023. Below is an overview of the rules as contained in this agreement.

Principle

The framework agreement does not amend the Regulation 883/2004 mentioned above, but it is an agreement under article 16 of the Regulation. The principle of this agreement is as follows: an employee can remain subject to the social security system of the country where the employer is based while teleworking from the country of residence, provided he teleworks less than 50% of the time there. The framework agreement is very important because it allows employees to exceed the threshold of 25% of their working time in their country of residence, up to 49.99%, without affecting the applicable social security system.

Personal scope

Certain conditions must be fulfilled. The employee must be employed by one or more employers based in the same Member State (work state). The employee’s work state must be the state in which the employer has its registered seat. Consequently, employees working from a country other than where the employer has its registered seat, for example from a branch in another country, are excluded from the scope of the framework agreement. Thus, a maximum of two member states are involved: the Member State where the employee is teleworking and the work state where the employer has its registered seat. Finally, both parties must agree to the application of the framework agreement.

Territorial scope

In terms of territorial scope, the framework agreement applies only if both the work state and the state of residence of the employee have signed the framework agreement. Belgium and its neighbouring countries have signed this agreement.

The full list of countries that have signed the agreement can be found via this link : https://socialsecurity.belgium.be/en/internationally-active/cross-border-telework-eu-eea-and-switzerland

Formalities

If all the above conditions are met, the parties should apply for an A1 certificate according to the rules of the framework agreement. This A1 certificate indicates that the employee and the employer are subject to the social security system of the state where the employer is located and therefore do not owe social security contributions in the employee’s state of residence.

The authorities of the country where the employer is based, are authorised to issue this A1 certificate. They should inform the employee’s country of residence that an A1 certificate is requested. Although the agreement states that the certificate is valid for three years, the Belgian National Social Security Office (RSZ/ ONSS) has indicated that the certificate is valid for a maximum of one year and can be renewed.

It is important to keep in mind that the “classic” system of simultaneous employment still applies alongside the framework agreement on cross-border telework. As a result, the parties will have the choice to apply the system they want depending on the situation they are in.

Example

An employee lives in France, but works full-time for an employer with a registered seat in Belgium. The employer has a telework policy that allows the employee to work two days a week from his home in France. The question is therefore whether the parties could apply the rules of the framework agreement and thus avoid a switch to French social security and remain covered by Belgian social security.

• The employee’s work state is the country where the employer has its registered seat;
• The two countries involved, Belgium and France, have both signed the framework agreement;
• The employee teleworks at least 25% but less than 50% of the time from his country of residence.

If all conditions are met, the framework agreement can be applied if the parties agree. As a result, the employee and the employer remain subject to Belgian social security system. The employer must then apply for an A1 certificate from the Belgian National Social Security Office (RSZ/ONSS).

Do not hesitate to contact us for more information via legal@pro-pay.be.

The school year is in full swing, so about time to list all the regional principles regarding educational leave.

What is the scope?

Paid educational leave gives the employee the right to follow an approved training course and to be absent from work while keeping his/her entitlement to salary. Not each and every training course opens the right to educational leave. However, the training does not necessarily need to be linked to the employment activities exercised by the employee for the employer.

In Flanders, ‘Flemish training leave’ has replaced paid educational leave. In order to determine the competent region for this type of leave, you need to check where the seat of business is located where the employee is employed. This is the address/location as mentioned on the DmfA declaration for the National Social Security Office. The employee’s place of residence or the place where the training is followed are therefore not decisive for entitlement to educational leave.

With this newsletter we wish to explain the general system and the regional differences of educational leave. We limit ourselves in the present overview to the three biggest regions in Belgium: Flanders, Brussels and Wallonia.

The Brussels-Capital Region has implemented some changes from the school year 2023-2024, which will also be discussed in this newsletter.

Which employees are involved?

All employees from the private sector working on a full-time basis. Certain part-time working employees are also entitled to this type of leave.

The Brussels-Capital Region has made the conditions for the entitlement to educational leave for part-time employees more flexible from school year 2023-2024: as soon as employees work at least 25% of a full-time job, they are eligible for (pro rata) educational leave.

Does this apply to all courses?

No. Only training courses approved by the authorities are eligible, but there are regional differences when it comes to these approvals. From school year 2023-2024, there will be more accredited courses in Brussels than last school year. Through the links below you can verify if a training is approved in the region where your employee is employed. Unfortunately enough, these databases are not available in English.

Flanders
Brussels
Wallonia

The training should normally last at least 3 study credits or last at least 32 hours.

In Flanders the employee is allowed, for the school year 2023-2024, to combine several courses or modules at different training providers – which by themselves do not amount to 32 hours – in order to meet this minimum requirement.

Can the employer refuse the request for leave?

No, the employee has the right to take training leave and the employer cannot refuse. The days of absence however need to be planned in mutual consent between the employer and the employee.

How many hours of leave can the employee apply for?

This depends on the specific training course the employee follows.

Maximums have been set which depend on the training followed and which differ per region.

Recent reforms have increased the maximum number of hours of educational leave in Brussels for certain courses compared to last school year. Moreover, the rules now provide for the possibility of so-called increases. For example: until now, a language course gave entitlement to a maximum of 80 hours of educational leave per school year in Brussels. From this school year, this limit can be increased to 130 hours if the employee chooses, for example, to study one of the national languages or sign language.

In the Flemish Region, the maximum number of hours of training leave is set at 125 hours per school year. The common initiative right in Flanders whereby the employee has a double personal maximum, when the employee follows a training at the employer’s suggestion and also follows training at his own initiative, is extended for the school year 2023-2024.

How does the employee apply?

The employee must submit a proof of enrollment to the employer by October 31. In the event of a change of employer or in case of a registration for a training course during the year, this certificate or proof must be delivered within 15 days after the change of employer or registration.

When the employee follows a training course in the Brussels Capital or Walloon Region, (s)he needs to hand over a ‘certificate of accuracy’ to the employer on a quarterly basis, showing that the employee follows classes attentively. In the Flemish Region, the employee is no longer required to hand over this certificate of accurate presence to the employer. The institution where the employee follows the training has to register the presence of the employee online. If the employee does not follow the lessons punctually and therefore has taken more leave than (s)he is entitled to, (s)he will receive less training leave the next time (s)he wishes to register for a training course.

When does the leave need to be taken?

In Wallonia and Brussels, the days of absence need to be taken between the start and the end date of the course. In Flanders, the employee has a little more time: the days of absence need to be taken between the day before the start date of the course and two days after the end date, or after the final exam.

Who is paying?

The employee who is absent in the framework of educational leave receives his/her normal wage from the employer, but the latter can limit this to 3,364 EUR gross per month for full-time employees. A legislative proposal was introduced to index this amount annually, in September. Because of that, the salary limit would be 3,500 EUR per month as from 1 September 2023. This legislative proposal still needs to approved.

The employer can reclaim part of the salary paid during training leave from the Walloon, Brussels or Flemish government, depending on the region where the employee is employed.

In Flanders and Wallonia, employers can be reimbursed € 21.30 per hour of absence by the relevant regional government.

Brussels has indexed this amount to € 22.07 per hour. This indexed amount also applies to reimbursements for paid educational leave from the school year 2022-2023.

The deadlines for submitting the file to claim a reimbursement are very strict and vary by region:

• The Brussels-Capital Region: The files must be submitted between 1 September and 31 December of the school year following the school year for which reimbursement is requested. So in order to obtain a reimbursement for the hours of absence of the employees for school year 2023-2024, the file must be submitted no later than 31 December 2024.
• The Walloon Region: The request can be submitted until 31 March of the school year following the school year for which reimbursement is requested. This means that reimbursement requests for school year 2023-2024 can be submitted until 31 March 2025.
• The Flemish Region: You only have 3 months after the start of the course to claim compensation. If your employee has started a training in September 2023 in the framework of Flemish training leave, the file must be submitted before 31 December 2023.

What can Pro-Pay do for you?

Pro-Pay can file the applications for (partial) reimbursement of the salary with the competent authorities on your behalf.

Please contact your Payroll Business Partner for more detailed information.

To implement the IPA agreement 2023-2024, recovery hours, 120 voluntary net overtime hours, have been reintroduced from 1 July 2023 to 30 June 2025. These overtime hours are added to the statutory 100 voluntary overtime hours.

In addition, the partial exemption from withholding tax for overtime with an overtime supplement is extended.

1. Recovery hours

– The difference with ordinary voluntary overtime

An employee can perform 100 voluntary overtime hours per calendar year (extended to 120, but the basic quota of 100 overtime hours is used for recovery hours).

Recovery hours are 120 additional voluntary overtime hours per year that can be performed on top of these ordinary voluntary overtime hours. However, they differ from ordinary voluntary overtime in a number of ways:

– There is no internal overtime limit for recovery hours.
– There is no mandatory overtime supplement on recovery hours. However, the employer can grant it voluntarily.
– Recovery hours are granted net, so neither social security contributions nor taxes are due.

These overtime hours were once introduced as support measure resulting from the COVID-19 crisis.

– Application conditions

As for ordinary voluntary overtime, employer and employee must reach a prior written agreement on recovery hours. This agreement is valid for a maximum of six months and must be renewed thereafter. An employee can perform 120 recovery hours:

– In the period from 1 July 2023 to 31 December 2023; and
– In the period from 1 January 2024 to 31 December 2024; and
– In the period from 1 January 2025 to 30 June 2025.

The recovery hours can be performed even if the ordinary voluntary overtime has not yet been used.

Recovery hours are subject to a maximum daily and weekly limit of 11 hours per day and 50 hours per week.

– Exemption from withholding tax and social security contributions

Recovery hours are exempt from withholding tax and social security contributions. These are therefore “net” overtime hours.

2. Favourable tax treatment: partial exemption of withholding tax for 180 overtime hours

For overtime that does not fall under the aforementioned regime (such as for example the ordinary voluntary overtime), an overtime supplement has to be paid. For this type of overtime, however, there is a partial exemption from withholding tax for 130 overtime hours per calendar year:

– For the employer: exemption paying withholding tax of 41.25 % of the gross salary which is the basis of the calculation of the overtime and on top of which a supplement of 50 or 100 % has to be paid.

– For the employee: exemption of withholding tax of 57.75 % of the gross salary which is the basis of the calculation of the overtime and on top of which a supplement of 50 or 100 % has to be paid.

For 2021 to June 2023, the number of overtime hours was temporarily increased to 180 overtime hours per calendar year. The partial exemption will again be increased to 180 overtime hours per calendar year from 1 July 2023 until 30 June 2025.

Your Payroll Business Partner will apply this automatically if applicable.

! Action point: If you wish to use the beneficial recovery hours, please inform your Payroll Business Partner hereof and comply with the above conditions. Your Payroll Business Partner can provide you with a template of the agreement for the employee. For more questions about overtime, you can always contact our legal department.

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 207 these negotiations have been finalized, which resulted in a sectoral agreement for the years 2023 – 2024 (valid from January 1, 2023 until December 31, 2024). We would like to provide you hereby with an overview of the most important decisions for the upcoming two years in your sector of industry.

Wages

The gross minimum experience monthly salary will be increased by € 17.333 from July 1, 2023 and will be further increased by € 17.333 from July 1, 2024.

Purchasing power premium

Companies that do not conclude collective labour agreements concerning salaries on a company level (= non-conventionalized companies), will have to pay a purchasing power premium to the employees on September 30, 2023 at the latest if these companies have achieved high or exceptionally high profits.

• High profit: Companies with high profits are those where the result of the sum of accounting codes 9901 + 630 + 631/4 + 635/8 of the annual account of the financial year 2022 is positive. These companies must grant a purchasing power premium of € 350.
• Exceptionally high profit: Companies with exceptionally high profits are those where the accounting code 9901 divided by the balance sheet (= ROA) is at least equal to double the average ROA of the company’s last 6 years. These companies have to grant a purchasing power premium of € 351.

The conditions must have been achieved autonomously and assessed at the legal entity level. Please verify these conditions with your accountant.

For those companies where the financial year does not coincide with calendar year 2022, it is the annual account closing in calendar year 2022.

The purchasing power premium must be granted in the form of vouchers not later than 30.09.2023. The vouchers are valid until December 31, 2024 and can be used to purchase food or products and services of an ecological nature (similar to meal vouchers and eco vouchers).

The premium is granted to white-collar workers who are employed on June 1, 2023, pro rata their working regime in the reference period running from June 1, 2022 to May 31, 2023, and pro rata the effective working performance and equivalences according to the cla’s on the end-of-year premium during this reference period.

A company that does not meet the sectoral conditions can still grant a purchasing power premium of maximum € 750 at company level. However, a justification must then be added in the collective labour agreement at company level that the company achieved good results during the crisis, without having achieved the high or exceptionally high profits stipulated in the sectoral collective labour agreement. In the absence of a union delegation or if it concerns a category of staff for which it is not the usual practice for it to be targeted by a collective agreement, the purchasing power premium can be granted via an individual agreement.

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

Mobility

Until now, sector JIC 207 referred to the general minimum regulation determined by the National Labour Council regarding the contribution of the employer in public train transport.

From February 1, 2024, the employer’s contribution will be increased to 80% of the actual price of train tickets depending on the distance. Companies are recommended to enter into a third-party payer agreement with NMBS/SNCB at no additional cost, with the remaining 20 % being borne by the government so that the employee can benefit from free commuting via the NMBS/SNCB.

In addition to the employer’s contribution to the train subscription, the employer will also contribute to the costs of a monthly subscription to the NMBS/SNCB car park. Until now, the contribution was € 10 per month, but this will be increased to € 25 per month (prorata the subscription formula).

Seniority leave and age-day

From January 1, 2024, the following seniority leave scheme will apply in JIC 207:

• 1 day of seniority leave is granted after at least 15 years of seniority in the company.
• A second day of seniority leave is granted after at least 20 years of seniority in the company (instead of the current 25 years).
• A third day of seniority leave is granted after at least 30 years of seniority in the company (maximum 3 days of seniority leave per calendar year).

From January 1, 2024, 1 age-day will be introduced for employees aged 60 who can only claim 2 or fewer seniority days (without this allowing the sum of the seniority and age-days to exceed 3).

Unemployment scheme with company allowance and time credit

All existing schemes of unemployment with company allowance are extended.

Regarding time credit, the sector provides for an extension to June 30, 2025 of the time credit with the motive of care for a period of 51 months (full-time and half-time suspension) and for a period of 36 months for the motive of training (full-time and half-time suspension).

Entitlement to allowances in landing positions from 55 years (4/5 and ½) is extended.

Training

JIC 207 follows the rules of the Labour Deal regarding the right to training. For instance, for companies with more than 20 employees (in terms of in full-time equivalents), an individual training right is introduced of 4 days in 2023 and 5 days in 2024 for a full-time employee.

Temporary work

When hiring a temporary worker who was already working in the company, an obligation already exists in the sector to equalise the seniority as a temporary worker for all company benefits based on seniority, with the exception of the year-end bonus and any supplementary pension that may exist in the company. This equalization was foreseen for a maximum of 18 months, but is now extended to a maximum of 24 months.

This provision applies to recruitments from July 1, 2023.

The social dialogue in Belgium is organized on 3 levels: inter-sectoral/federal, sectoral and company level. In the past few months, the wage norm and several employment measures which serve as the basis for the negotiations on a sector level, have been determined on a federal and inter-sectoral level. As a reminder, the wage norm was set at 0% for the years 2023-2024.

Within JIC 200 (Auxiliary Joint Committee for white-collar workers) these negotiations have been finalized, resulting in a sector agreement for the years 2023-2024 which is valid until 31 December 2024. We provide you hereby with an overview of the most important decisions in your sector.

Youth salary scale

The specific youth salary scale will be abolished from 1 January 2024. As a result, the degressive scales will be eliminated for white-collar workers aged between 16 and 21 and they will be paid as ordinary white-collar workers. However, the student pay scale will be maintained.

Purchasing power premium

In companies with a high or exceptionally high profit in 2022, a one-off purchasing power premium will be granted to the employees.

A company has achieved a high profit if the two cumulative conditions are met:

1. The ratio of operating profit (code 9901) on the balance sheet total in 2022 is at least 1.25x the average for the same ratio over the years 2019-2021;
2. The operating profit in 2022 (code 9901) represents at least 5% of the balance sheet total in 2022.

A company has achieved an exceptionally high profit if the two cumulative conditions are met:

1. The ratio of operating profit (code 9901) on the balance sheet total in 2022 is at least 2x the average for the same ratio over the years 2019-2021;
2. The operating profit in 2022 (code 9901) represents at least 5% of the balance sheet total in 2022.

The conditions must have been achieved autonomously and assessed at the legal entity level. Please verify these conditions with your accountant.

The year 2022 means the financial year of which most months are in 2022. If the financial year ended on 30 June, the financial year is the one ending in 2022.

The amounts of the purchasing power premium are as follows for the companies that achieved (exceptionally) high profits:

• € 125 if the ratio of operating profit (code 9901) on the balance sheet total in 2022 is at least 1.25x the average for the same ratio over the years 2019-2021;
• € 250 if this is at least 1.5x the average for the same ratio for the years 2019-2021;
• € 375 if this is at least 2x the average for the same ratio over the years 2019-2021 (exceptionally high profit).

The premium is granted to white-collar workers who are employed on 31 October 2023 and have a seniority in the company of at least 1 month (performance between 1 November 2022 and 31 October 2023). The premium is granted pro rata for part-time white-collar workers.

The purchasing power premium will be paid at the latest on 31 Dcember 2023. Please note that the employer must send a written communication about the granting or non-granting of the premium to the labour union delegation or, if there is no labour union delegation, to the employees, by 15 November 2023.

The 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).

A company that does not meet the sectoral conditions can still grant a purchasing power premium of maximum € 750 at company level. However, a justification must then be added in the collective labour agreement at company level that the company achieved good results during the crisis, without having achieved the high or exceptionally high profits stipulated in the sectoral collective labour agreement. In the absence of a union delegation or if it concerns a category of staff for which it is not the usual practice for it to be targeted by a collective agreement, the purchasing power premium can be granted via an individual agreement.

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

Mileage allowance

As from 1 July 2024, the bicycle allowance for commuting travel will be increased to € 0.27 per kilometre effectively travelled (with a maximum of 40 km round trip per day or € 10.80 per day). This bike allowance only applies for employees who regularly cycle to work and cannot be combined with other compensations for commuting, with the exception of the compensation for public transport.

The annual gross salary limit for reimbursement of commuting expenses for an employee using his/her own means of transport will be increased from 1 January 2024.

Time credit and unemployment scheme with company allowance

Time credit with a motive is subject to the provisions of the previous sector agreement in JIC 200 so employees can benefit from 51 months of time credit for reasons of care taking, given that they meet the conditions.

Please note that some of the conditions for time credit have recently changed, see also our newsletter on this topic.

For time credit in view of landing positions (career wind-down), JIC 200 already had the possibility of a halftime time credit and a 1/5th time credit with an allowance for employees as from the age of 55 on the condition that they could prove a long career (35 years), a heavy and arduous profession, or 20 years of night work and provided that they had a seniority of 2 years in the company. These schemes of time credit have been extended from 1 July 2023 until 30 June 2025.

The collective labour agreements concerning the unemployment schemes with company allowance for long career, heavy and arduous profession and night work have been extended until 30 June 2025.

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:

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

• From 1 January 2024: 3 individual training days
• From 1 January 2026: 4 individual training days
• From 1 January 2028: 5 individual training days

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.

As you could read in our newsletter of 16 December 2022, the mileage allowance is no longer indexed annually, but quarterly. The new amount applicable starting from July 1, 2023 until September 30, 2023 is € 0.4237 per kilometre.

As a reminder: the amount that was applicable from 1 April 2023 until 30 June 2023 was € 0.4246 per kilometre. Note that there is a decrease compared to the previous amount.

An additional condition is 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.

This amount is a maximum amount. 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.