Tax reduction for stimulus hours
June 2022 – As part of the social agreement of 2021, it was agreed to increase the number of voluntary overtime hours that could be worked without extra pay from 100 to 220 in all sectors. The additional 120 hours of voluntary overtime are known as stimulus hours. You can still use them until the end of 2022.
In labour law
Although applicable since 1 July 2021, this social agreement was not cast into law until the end of 2021. The change in the law meant that in 2021 and 2022, the number of voluntary overtime hours, as referred to in article 25bis of the Labour Act of 16 March 1971, was increased for all sectors by 120 hours, known as "stimulus hours". These stimulus hours can be worked in the period :
from 1 July 2021 to 31 December 2021 inclusive; and
from 1 January 2022 to 31 December 2022 inclusive.
The measure already existed, but was limited to so-called essential sectors (hospitals, supermarkets, etc.).
Voluntary overtime already worked in 2021 must be deducted from the quota of 120 additional voluntary overtime hours in the period from 1 July 2021 to 31 December 2021 inclusive.
The additional hours worked under this measure do not have to be recovered and are not subject to any additional pay.
In tax law
Why would an employee voluntarily work overtime if he or she does not receive any extra pay for these hours? There is a tax reason for this: the remuneration for the 120 hours of overtime worked in 2021 and 2022 is exempt from income tax.
Please note: the remuneration for the first 100 hours of voluntary overtime is still taxable in principle.
The income tax exemption applies in principle to the remuneration of employees as well as to the remuneration of company directors, but the remuneration received by a company director in connection with his or her activity as a self-employed company director does not qualify for the exemption, because self-employed company directors are not legally allowed to work voluntary overtime.
Exceeding the maximum
The exemption is limited to 120 additional voluntary overtime hours per taxpayer. If this maximum is exceeded, the exemption is calculated on a pro rata basis.
If, in 2021, remuneration was paid for less than 120 hours of stimulus work, a tax exemption can be granted for the balance of the remuneration relating to stimulus hours worked in 2021 that are not paid or allocated until 2022. This also applies to remuneration for dunning hours worked in 2022 that are not paid in full in 2022.
Example
In the fourth quarter of 2021, A works 40 dunning hours. 30 of these hours are paid in 2021 and 10 in 2022. In 2022, A works the maximum of 120 dunning hours. 115 of these hours are paid in 2022 and 5 in 2023. This means that in the income year 2021, A is exempt for 30 hours; in the income year 2022, A is exempt for 125 hours (i.e. for 10 hours worked in 2021 and 115 hours worked in 2022); and in the income year 2023, A is exempt for 5 hours (worked in 2022).
Horeca
The hotel and catering industry has been subject to a separate regime for several years now. In this sector, an income tax exemption applies for 360 or 300 hours of overtime, depending on whether or not the establishment has a white box.
In the rather exceptional case where a worker first works exempted restarting hours outside the hotel and restaurant sector and then works exempted overtime in the hotel and restaurant sector, the exempted restarting hours must be deducted from the 360/300 exempted overtime hours in the hotel and restaurant sector.
Tax reduction
The exemption for restarting hours should not be confused with the tax reduction for overtime work with extra pay. This is another measure of the social agreement: the agreement extends the tax reduction that an employee receives for overtime work with extra pay from 130 to 180 hours of overtime. This measure is linked to an exemption in favour of employers, who are exempted from paying the withholding tax on the remuneration for these overtime hours to the Treasury.
The restarting hours, on the other hand, do not qualify for the exemption from payment or for the tax reduction, because no extra pay is paid for these restarting hours.
Until the end of 2022
The tax exemption for dunning hours only applies to dunning hours worked until 31 December 2022. The reference date is therefore the date of the service. This also means that it is perfectly possible to still benefit from the exemption in 2023 for dunning hours that were worked in the course of 2022, but which will only be paid in 2023.
