Introducing wage bonus (collective agreement 90) for your staff? Introduce your bonus plan before 31 October 2023!
October 2023 - With the wage bonus (collective agreement 90), an employer has the possibility to grant its staff an advantageous bonus based on collective objectives. Such a form of remuneration is very advantageous from a fiscal and social point of view.
Did you not introduce such bonus this year? You can still do so for the last quarter of 2023, although then you have no time to lose!
Because even though most reference periods coincide with a calendar year, a shorter reference period of at least three months is also possible. In other words, you can still introduce a bonus plan for the period from 1 October to 31 December 2023.
However, if you choose this option, you must submit this bonus plan no later than 31 October 2023! This is because the company collective agreement or act of accession must be filed with the registry of the FPS WASO before one third of the reference period has elapsed.
As a refresher, a wage bonus is very advantageous both fiscally and socially. An employee pays a solidarity contribution of 13.07% on the amount granted. As an employer, a patronage contribution of 33% must be paid on the amount. For the tax authorities, no withholding tax has to be withheld as long as the limit amount (which is indexed annually) is not exceeded. The tax limit amount is obtained after deduction of the employee's solidarity contribution.
For 2023, the limit amounts are:
· 3,948 euro for social security contributions
· 3,434 euro for the withholding tax on professional income
If the benefit paid exceeds the ceiling, the surplus will be subject to ordinary social security contributions and withholding tax (exceptional compensation).
For your information, the cost of the wage bonus is fully tax deductible for you as an employer.
