Author: ibizz

The Consultative Committee has decided that teleworking will no longer be mandatory in Belgium from February 18, 2022. This is in contrast to the previous decision of the Belgian government to extend the teleworking obligation of 4 days per week until April 27, 2022.

Employees are thus allowed to go to the office every day as from 18.02.2022, although the Consultative Committee has emphasized that teleworking is still recommended if possible. At the workplace, the rules of social distancing still need to be respected.

We assume that the mandatory telework declaration via the portal of the social security authorities will no longer apply. However, if the government decides otherwise, we will keep you informed.

On February 1, 2022, the subscription fees for the train (NMBS/SNCB) have been increased. In this newsletter, we would like to inform you of the impact of these increases for you as an employer.

We repeat in a nutshell the general principles that determine whether you, as an employer, are obliged to contribute to the commuting costs of your employees:

1. For employees who come to work by public transport, the employer is obliged to pay a contribution. Before July 1, 2020, the employer only had to contribute if the employee travelled more than 5 kilometers to work by bus, tram, metro or waterbus. Since July 1, 2020, this contribution applies as from the 1st kilometer.
2. All employers are subject to a minimum contribution, laid down at the level of the National Labour Council (CNT/NAR). Within the National Labour Council, a collective bargaining agreement was concluded that determines the employer’s contribution based on lump sums. These amounts have remained unchanged since July 1, 2019.
3. For employees who come to work by their own means of transport (car, bicycle,…), it should be checked whether a contribution has been determined at sector level.

As you can read below, increases of the fares of the public transport companies do not affect every employer.

Train

As from February 1, 2022, the NMBS/SNCB increased the fee of the commuting train season tickets by 2.14%. Whether you, as an employer, have to contribute to this increase in fares, depends on the joint industrial committee (sector) to which your company belongs, and the collective labour agreements that were concluded in this joint industrial committee:

1. Your sector does not stipulate anything about the contribution to commuting costs or refers to the general minimum regulation provided for by the National Labour Council è your contribution does not increase, as the lump sums remained unchanged.
2. Your sector provides for the employer’s contribution to be equal to a percentage of the actual rail fares è your contribution will increase.
3. You make use of a third-party payer agreement whereby you as an employer pay a contribution of 80% of the actual price of the train season ticket to the train company and the state pays the remaining 20% è your contribution will increase.

Metro, tram, bus, waterbus

Does your employee travel to work by metro, tram, bus or waterbus? First of all, check whether your sector has stipulated anything for this reimbursement.

If your sector does not stipulate anything, the price increases will have an impact on your contribution to the commuting costs, depending on which of the following regulations applies:

1. Is the cost of the ticket linked to the distance travelled? Then the employer’s contribution is calculated on the basis of the fixed lump sums of the railway transport, but the contribution is limited to 75% of the actual transport cost.
2. Is the cost of the ticket not linked to the distance? The contribution of the employer is 71,80% of the actual transport cost, not exceeding the lump sum provided for the train for a distance of 7 kilometers.

Private transport

Does your employee come to work using his own car, bike or by foot?

A mandatory contribution to private transport is not provided for by the National Labour Council. Therefore, the employer’s contribution for private transport is often provided for at sectoral or company level. If your sector refers to the lump sums of the railway transport, your employer’s contribution will not increase. However, some sectors refer to a percentage of the actual train fares. In this case, the employer’s contribution to the commuting costs will increase.

Combined public transport

Your employee combines the train with one or more other means of public transport? First of all, check the regulations in your sector.

If your sector does not stipulate anything and if only one ticket has been provided for the whole distance, the employer’s contribution is calculated on the basis of the established lump sums of the railway transport. If several tickets are provided, the employer’s contribution must be calculated separately for each means of public transport. These employer contributions must be added together.

Conclusion

The increase in the public transport fares does not necessarily mean an increase in cost for you as an employer. A lot depends on the rules that apply in your sector.

If your contribution for the commuting costs of your employees increases, we will automatically calculate the correct contribution for you.

If there are any changes in the means of transport your employee uses for his/her commuting travel, do not forget to inform your Payroll Business Partner in due time!

Employees working from home on a structural and regular basis can be granted a cost allowance by the employer for that homework. The amount of this indemnity was recently increased retroactively from € 129.48 to a maximum of € 132.07 per month. As from February 1, 2022 this office indemnity will rise again to a maximum of € 134.71 per month.

Office indemnity

Given the fact that costs related to homework are relatively small and difficult to prove, the social security authorities (RSZ/ONSS) and the tax authorities accept to estimate these costs on a lump sum basis.

The social security authorities have published in their intermediary administrative guidelines during the month of January 2022 that the office allowance will be retroactively indexed as from October 1, 2021 to a maximum of € 132.07 per month. In addition, the social security authorities have announced that the office allowance will rise again to € 134.71 per month from February 1, 2022.

The tax authorities had already indicated in their circular letter of February 26, 2021 that they would follow the amount of the office indemnity as determined by the social security authorities, as well as the evolution of this amount. The amounts of € 132.07 and € 134.71 are therefore exempt from social security contributions and taxes. The office allowance is intended to cover, among other things, costs for heating, electricity, water, insurances, office supplies and refreshments.

The amounts of € 132.07 and € 134.71 are maximum amounts. Based on an objective justification (job category or factual circumstances), the employer may give different amounts to different employees.

We would also like to remind you that a written agreement must be drawn up for teleworkers, in principle at the latest when the employee starts teleworking. In this agreement, specific mandatory provisions must be included such as the frequency of the telework, the place where the telework will be performed, how the costs will be reimbursed, etc.

Other indemnities for homework

In addition to the office allowance, the employer can also reimburse the following costs on a lump sum basis. These indemnities were not indexed and have therefore remained the same.

• 20 EUR per month if the employee uses his/her own internet connection for professional purposes.
• 20 EUR per month if the employee uses his/her own computer for professional purposes.

OR € 10 per month (€ 5 per item) for the professional use of a personal second computer screen and printer/scanner (and this for a maximum of 3 years). Attention, this allowance cannot be combined with the lump sum of € 20 per month for the use of the own PC.

The lump sum amounts can of course only be granted if the office and internet costs are not yet reimbursed to the employee in another way.

Some time ago, we informed you about the wage norm which determines that in 2021 – 2022 the wages may increase with maximum 0,4 %. Not all salary elements however 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 = € 3.558 (amount 2022) per employee per calendar year. This amount is subject to a solidarity contribution of 13,07 % for the employee.
• Fiscal threshold = € 3.094 (amount 2022) 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. Examples of objectives are: achieving a certain determined turnover during the reference period, decreasing the error range, decreasing the complaints from customers, obtaining an ISO-norm or another license …
• 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 model document must be used.

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 be due 13,07 % as a solidarity contribution and will pay 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?

Making the best choice of bonus 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.

The government has introduced new support measures in response to the COVID-19 crisis. The government had already introduced inexpensive overtime hours without an overtime supplement in essential sectors, called “recovery hours”. These inexpensive overtime hours are extended to all sectors in 2022. The government has also decided to increase the number of overtime hours with overtime supplement, for which a partial exemption of withholding tax exists. We discuss the conditions and modalities of these overtime hours in this newsletter.

Additional voluntary overtime or recovery hours

“Ordinary voluntary overtime” versus “additional voluntary overtime”

Reminder: overtime rules apply when the limit of 40h/week (or lower if determined as such on sector level) or 9h/day is exceeded.

In order to perform overtime, there must be a legal ground such as: unforeseen necessity, an extraordinary increase of work etc… There are also formalities and information requirements attached to these, which means that formalities have to be complied with in order to perform overtime correctly.

The introduction of voluntary overtime in the framework of the Act of Workable and Flexible Work of 2017, meant a major simplification. Since then, 120 voluntary overtime hours can be performed per calendar year (In some sectors (such as the hospitality industry), the maximum amount of voluntary overtime hours was increased based on a sector cba), purely based on the voluntariness of the employee. This voluntariness has to be confirmed in a written agreement of the employee, which is valid for 6 months (renewable). This is the only formality. For those overtime hours, no compensatory rest is due, but an overtime supplement is (50% or 100% if overtime on Sunday or public holidays).

On top of these existing voluntary overtime hours, which however are limited to 100 hours, an additional 120 voluntary overtime hours are authorised in 2022. These additional voluntary overtime hours or “recovery hours” are also extra advantageous, because contrary to the ordinary voluntary overtime hours, no overtime supplement is due.

Temporary application

These 120 voluntary “recovery hours” can be performed in 2022 on top of the existing credit of 100 voluntary overtime hours.

Conditions

As it concerns voluntary overtime, there has to be a written agreement. This agreement is valid for 6 months and has to be renewed before that period has expired.

No overtime supplement is due for these overtime hours and the employer does not have to grant compensatory rest.

The ordinary overtime hours do not have to be used up first: employer and employee can choose recovery hours immediately.

Exemption withholding tax and social security reductions

The recovery hours are exempt from withholding tax and social security reductions.

Favourable tax treatment for partial exemption of withholding tax for 180 overtime hours

For overtime that does not fall under the aforementioned regimen (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.

In 2019 and 2020, the number of overtime hours was temporarily increased to 180 overtime hours per calendar year. Thereafter, this number would have been reduced to 130 overtime hours again, but the legislator has now decided that the partial exemption will again be increased to 180 overtime hours per calendar year as from 1 July 2021 until 30 June 2023.

Your Payroll Business Partner will apply this automatically if applicable.

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.

Since July 1, 2014, 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 January 1, 2022, the following minimum gross salary limits will apply for the category of highly qualified staff and executives who want to work in Belgium:

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.

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 has just been announced and amounts to 3,58%. This implies in practice that the gross salaries will be increased with 3,58% as from January 1, 2022 onwards.

It also entails that the yearly premium that needs to be paid in June 2022 (if not replaced by an equivalent benefit), will amount to € 277,22.

The government has decided to extend the existing corona unemployment scheme, which would normally expire on 31.12.2021, to 31.03.2022. The extension has also been communicated by the Unemployment Office (RVA/ONEM) in the meantime.

More information regarding the conditions for employers who wish to make use of this type of temporary unemployment can be found in our newsletter of 09.11.2020: COVID-19: temporary unemployment.

We would like to remind you that, as an employer, you need to take the following steps if you wish to apply corona unemployment:

Inform your employees in writing prior to the start of corona unemployment about:

• the period of corona unemployment;
• the number of days during which the employee will be temporarily unemployed and, in the event of partial corona unemployment, the number of days the employee is expected to work.

Let your Payroll Business Partner know which days your employees will work and which days they are unemployed.

Pro-Pay takes care of the required electronic registration of these unemployment days, which allows the Unemployment Office (RVA/ONEM) to determine the unemployment allowance for the employee.

Also the possibility of relying on temporary unemployment when a child of the employee is in quarantine or when the employee himself has to go in quarantine, is extended until 31.03.2022.

Assimilation corona unemployment for holidays – Employees in Belgium accrue holiday rights based upon their performance in the preceding calendar year, also referred to as the holiday reference year. A number of absences are assimilated for the entitlement to holidays and are thus considered as days worked. The days of temporary unemployment in the context of COVID-19 that took place between 01.02.2020 and 31.12.2020 were already assimilated to days worked for the holiday entitlement in 2021. In the meantime, the government decided that the days of temporary corona unemployment between 01.01.2021 and 31.12.2021 will also be assimilated to days worked for the holiday entitlement in 2022. A financial compensation will be provided for employers. This decision still has to be incorporated into an official document.

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.

Within JIC 209 these negotiations have been finalized, resulting in a sector agreement for the years 2021-2022 (valid from January 1, 2021 until December 31, 2022). We would like to provide you hereby with an overview of the most important decisions in your sector.

Purchasing power

The provisions regarding the own implementation of the wage margin, the retroactive premium and the corona 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.

Salary increase

The sector agreement provides for an increase of the actual gross salaries and the scales by 0.4% from January 1, 2022 onwards. With this increase, JIC 209 uses the maximum salary cost development laid down by the Belgian government.

Companies can decide themselves how to use the available wage margin of 0,4% by means of a recurring equivalent benefit, but must either conclude a collective labour agreement at company level or submit their proposal to the Joint Industrial Committee, depending on whether or not the company has a labour union delegation. The agreement regarding this allocation needs to be concluded by 15.01.2022. If the company does not take any company-specific initiative to implement the wage margin, the actual gross salaries will increase by 0.4% on 01.01.2022.

We will automatically increase the gross salaries by 0.4%, unless you inform us before the payroll of January 2022 that your company will implement the wage margin itself.

Retroactive premium

For the year 2021, the white collar workers receive a one-off gross premium of 200 EUR, that must be paid in December 2021, if the white collar workers meet the following conditions:

• In service on 30.11.2021;
• Have performed minimum 60 effective working days in a reference period from 01.01.2021 up to and including 30.11.2021 (pro rata for new hires in the course of 2021, both with regard to the premium and the number of working days required);
• Pro rata application of the premium and effective working days for part-time employees based on their working regime on 30.11.2021.

The retroactive premium can also be replaced by an equivalent benefit, but the same specific procedure must be followed as for the salary increase.

We automatically calculate the retroactive premium for you, unless you inform us before the December payroll that you will replace this premium by an equivalent benefit.

Corona premium

No later than December 31, 2021, companies must grant a one-off corona premium of 300 EUR net in the form of consumption vouchers. This premium is increased by:

• 200 EUR net if the gross margin of the fiscal year 2020 is equal to or greater than the average gross margin of the fiscal years 2018 and 2019.
• 100 EUR net if the gross margin of the financial year 2020 is up to 10% lower than the average gross margin of the fiscal years 2018 and 2019.

Please contact your accountant to verify if your company is in this situation.

To be entitled to the corona premium, white collar workers must meet the same conditions as for the retroactive premium.

Employers who have already granted a higher or equivalent corona premium in the form of consumption vouchers since August 1, 2021, can deduct this from the corona premium in terms of net value. The employer can also grant a higher corona premium (total max. 500 EUR) by an individual agreement with the employees (if there is no trade union delegation).

Companies with a trade union delegation can agree to replace the corona premium with a company-specific benefit.

Companies are NOT required to grant the corona premium in the following cases:

• The company has an operating loss in the fiscal years 2019 and 2020, ánd there is a decrease in the gross margin of at least 10% in the fiscal year 2020 compared to the average gross margin in the fiscal years 2018 and 2019.
• The company has a negative operating result in the last fiscal year, is undergoing restructuring, or has experienced special difficulties, ánd this company has obtained a derogation via the Joint Industrial Committee.

Please contact your accountant to verify if your company is in this situation.

Please let us know the amount of the corona premium for your company before the December payroll. Please also let us know if you have already granted a benefit to replace the corona premium or if you will replace the corona premium with another benefit.

Minimum salary

The sectoral guaranteed minimum monthly salary (currently 1820.78 EUR) will increase repeatedly by 80 EUR on 01.01.2022 (to 1900.78 EUR), on January 1, 2023 (to EUR 1980.78) and on January 1, 2024 (to 2060.78 EUR).

The other scale salaries will be increased by 0.4% on January 1, 2022.

Eco vouchers

The eco vouchers can be replaced by another benefit.

Mobility

Unless more beneficial provisions exist on company level, the following rules apply as from January 1, 2022 onwards:

• Increase in employer’s contribution for private transport (other than bicycle): reimbursement of 0.075 EUR per kilometer travelled, with a maximum of 8.18 EUR per day (minimum amount per working day is maintained).
• Increase of employer’s contribution for bicycle allowance: reimbursement of 0.18 EUR per kilometer with a maximum amount of 7.20 EUR per working day (minimum amount per working day is maintained).

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

Please inform us whether we need to increase the employer’s contribution.

Unemployment scheme with company allowance and time credit

For time credit on specific grounds, JIC 209 applies the general rules as they are applicable in collective labour agreement n°103. This implies that employees will benefit from 51 months of time credit for reasons of care taking and from 36 months for training purposes, given that they meet the conditions.

For time credit in view of landing positions (career wind-down), JIC 209 already had the possibility of 1/5th time credit with a statutory allowance for employees as from the age of 55 on the condition that they could demonstrate 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. A half-time scheme with a statutory allowance is possible as from the age of 55 under the aforementioned conditions. These schemes of time credit have been extended with the present agreement.

As far as the unemployment scheme with company allowances is concerned, the agreements made on sectoral level will be extended, allowing employees to benefit from this scheme if they meet certain conditions.

Training

The employee’s transferable individual training entitlement will be extended from 16 to 24 hours per year.

Career leave

Employees get a second day of career leave from the age of 58 (in addition to the existing one from the age of 50).

Temporary unemployment

The supplementary allowance for temporary unemployment due to force majeure will increase by 2.21% from January 1, 2022, so that this allowance will be identical to the allowance for blue-collar workers.

Please also note that for the calculation of the end-of-year premium for 2021, the employer is obliged to pay an additional end-of-year premium of 7.5 EUR per day of temporary unemployment with a maximum of 100 days.

Leave of absence

An employee is entitled to leave of absence for the day of a relative’s wedding. This rule will now apply regardless of whether this family member lives under the same roof as the employee. “Family” is defined as kinship up to and including the third degree.

The employee can now also take the day of the funeral in the event of the death of any blood relative, regardless of whether this blood relative lives under the same roof as the employee.

The leave of absence for marriage of the child can also be taken on the activity day preceding the marriage if this marriage falls on an inactivity day of the employee.

The government has decided to extend the existing corona unemployment scheme, which would normally expire on September 30, 2021, to December 31, 2021. The extension has also been communicated by the Unemployment Office (RVA/ONEM) in the meantime. The government has, however, announced that this is the last extension and that the possibility of relying on corona unemployment will definitely end at the end of this year.

More information regarding the conditions for employers who wish to make use of this type of temporary unemployment can be found in our newsletter of November 9, 2020: COVID-19: temporary unemployment.

We would like to remind you that, as an employer, you need to take the following steps if you wish to apply corona unemployment:

1. Inform your employees in writing prior to the start of corona unemployment about:

• the period of corona unemployment;
• the number of days during which the employee will be temporarily unemployed and, in the event of partial corona unemployment, the number of days the employee is expected to work.

2. Let your Payroll Business Partner know which days your employees will work and which days they are unemployed.

Pro-Pay takes care of the required electronic registration of these unemployment days, which allows the Unemployment Office (RVA/ONEM) to determine the unemployment allowance for the employee.

Assimilation corona unemployment for holidays – Employees in Belgium accrue holiday rights based upon their performance in the preceding calendar year, also referred to as the holiday reference year. A number of absences are assimilated for the entitlement to holidays and are thus considered as days worked. The days of temporary unemployment in the context of COVID-19 that took place between February 1, 2020 and December 31, 2020 were already assimilated to days worked for the holiday entitlement in 2021. However, no further official decision has been taken yet that assimilates the days of corona unemployment for the entitlement to holidays in 2022.