1 / 23

Belgian Labour Law New Measures on Labour Law

Explore the latest measures on employer social contributions, benefits in kind, profit-sharing bonuses, posting of employees, and notice periods in Belgian labour law. Stay informed on key changes affecting employers and employees.

dculpepper
Download Presentation

Belgian Labour Law New Measures on Labour Law

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Belgian Labour LawNew Measures on Labour Law Brussels, 8th of March 2018

  2. Content • Employers’ social contributions • Benefits in kind & Cash for Car measure • Profit-sharing bonus • Posting of employees • Notice periods

  3. Employer’s Social Contributions • Tax shift  makes Belgium more competitive • 2016: • Reduction of the employer’s social contributions rate • Modification on the structural reduction • Review of the first hiringsmeasure • 2018: • New reduction of the employer’s social contributions rate • New change of the structural reduction • 2019: Review of the structural reduction

  4. Employer’s Social Contributions • 2018: decrease of the social contributions rate • Almost all the employers (except non profit makingsector …) • Basic rate: 30%  25% + sectorialspecific contributions + legalholidaypay contributions for blue-collarworkers

  5. Employer’s Social Contributions • 2018: review of the structural reduction • Removal of the lump sum of €438 • Removal of the extra reduction for the high wages • Increase of the reduction for wagesunder €2,950

  6. Employer’s Social Contributions First hiringsmeasure:  Life time exemption on the basic employer’s social contribution ends on the 31 December 2020

  7. Benefits in Kind • IT tools for professional & private use • Social contributions & incometax • National Social Security Office and Tax Administration haddifferent opinions • The value of thosebenefits has been reviewedsince the 1 January 2018 • Have to bedisplayed on the payslips

  8. Benefits in Kind

  9. Cash for Car • Project – Not yetadopted • Enableemployees to return theircompany car for a mobilityallowance • Employer’sdecision to offerthispossibility • Employee has to apply for it(by written) • Conditions: • Employer: fleet for 36 months(except employer starter) • Employee: car for 3 months & 12 monthswithin the last 36 months

  10. Cash for Car • How much? 20% of 6/7 of the car value + 20% if fuel card • Social treatment No remuneration Employer: no ordinary social contributions but a solidarity contribution Employee: no social contribution

  11. Cash for Car • Fiscal treatment Taxable advantage Incometaxis applicable • 4% of 6/7 of the value of the car (taxable amount) • The amount of the allowanceexceeding the taxable advantageisexempted

  12. Cash for Car Example Company car (catalogue value of €37,500, CO2 emissions of 115 g/km, diesel engine, first registration on 1 January 2016) : - Mobility allowance: €642.86 per month - Employer’s social contributions: €45.27 per month - income tax: €57.32 per month - Net for the employee: €585.54 per month - Cost for the employer: €688.13 per month (€642.86 + €45.27)

  13. Profit-Sharing Bonus • Scheme for participation in company profits reviewed • Possibility to grant a bonus based on company’s distribuable profits • 1 January 2018

  14. Profit-Sharing Bonus • Whatkind of bonus? - Identical (eachemployeegets the sameamount) - By category of employees - No individualization - No replacement of an existingremuneration • Whocan use this bonus scheme? - Employer: subject to incometax or non-residenttax - Employee: underemploymentrelationship (subordination)

  15. Profit-Sharing Bonus • How much? Max. 30% of the total payroll (gross basis) • How isit set up? - Employer’sdecision - Not recurrent - Identical bonus for eachemployee : G.A. decision - Bonus by category: specificprocedure (ex.:collective labour agreement)

  16. Profit-Sharing Bonus • Social treatment - Employer: no social contributions - Employee: 13.07% • Taxtreatment - Employer: non-deductibleexpense for corporatetax (29% in 2018) - Employee: 7%

  17. Posting of Employees • European Directive (2014/67/EC) • ImplementationintoBelgianlaw • Act of 11 December 2016 • Royal Decree of 14 September 2017

  18. Posting of Employees • Short assignment in Belgium (24 months) • MandatoryBelgian labour law provisions are applicable • Employeeremains in the social security system of the country where he isemployed • Certificate of coverage (A1 form) • Limosadeclaration

  19. Posting of Employees • Obligation for a foreign employer to appoint a liaison person (physicalperson) • No obligation to be a Belgianresident • The employer, an employee, anyone… • Acts as a contact personwith the Belgianauthorities • Holds the social & labour documents

  20. Posting of Employees • Appointment of liaison personthrough the Limosadeclaration • Person of liaison’sdetails & coordinates • Hiscapacity • Nature of the services carried out in Belgium • Temporarywork: accreditationnumber • Construction sector: comparable benefits in their home country as in Belgium • Etc.

  21. Notice Periods • 01/01/2014: • harmonization of notice periods • trial periodremoved • 01/01/2018: new notice periods

  22. New Notice Periods

  23. Contact Jinbao ZHANG International Social Advisor International@groups.be + 32 2 507 18 80 www.groups.be

More Related