The profit bonus or wage bonus collective agreement 90
What is the profit bonus?
The profit bonus is a collective bonus and must be paid to all employees. The bonus may therefore not depend on individual performance. This makes it possible to allocate part or all of the profit to the employees.
The profit bonus may not exceed 30% of the total gross payroll. Moreover, it can be identical or categorized for everyone.
With an identical premium, the amount is the same for everyone or everyone gets a certain percentage.
With a categorized premium, the amount can differ based on objective criteria such as function or seniority. The criteria are laid down in a Royal Decree.
The employee will have to pay a solidarity contribution of 13.07% and a withholding tax at a fixed rate of 7%. There are no employer social security contributions.
What is the procedure for awarding the profit-sharing bonus?
The obligations for the identical profit premium are limited. Only the general meeting of the board of directors needs to take note of this.
For the categorised profit bonus, there must be an inclusion in the company agreement or in the act of accession for companies without trade union delegation.
What is the wage bonus CAO 90?
This bonus is also a collective bonus but, unlike the profit bonus, the wage bonus is linked to collective results and not to the profit achieved.
The bonus is limited annually to a certain ceiling and is subject to an employer contribution. The wage bonus is tax deductible. For the employee, no withholding tax is applied, only a solidarity contribution of 13.07%.
The benefit may not exceed a certain annually indexed threshold amount.
What is the procedure for awarding the wage bonus CAO 90?
The wage bonus plan must be drawn up on the basis of objective criteria such as, for example, turnover targets, a reduction in work-related accidents, etc.
The wage bonus must be included in a company agreement or in an accession act for companies without trade union delegation. If there is a trade union delegation, the plan must be introduced by a collective agreement.
The wage bonus CAO 90 is financially more interesting than the profit bonus. However, the profit bonus has several advantages such as the simple procedure in case of an identical bonus and no limitation to a certain ceiling.
Sources and info: www.werk.belgie.be, www.sdworx.be, www.puuHR.be
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