Following failed negotiations between employers’ federations and unions on wage increases, companies that have performed well in 2022 will be able to reward their employees with a one-off tax-free bonus between €500 and €750, the government announced.
On Monday, ministers agreed on wages for the next two years following failed negotiations between employers’ federations and unions on wage increases earlier this month.
Among the measures, the government proposed that companies that achieved good results in 2022 will be able to reward their employees with a one-off bonus of €500 going up to €750 for companies with exceptional profits.
The government proposes to negotiate the granting of this bonus – that should be paid in 2023 – at the sectoral level or, if that’s not possible, within the company.
It is a tax-free bonus for employees which is also 100% tax-deductible for companies.
“This bonus is made possible at a time when the purchasing power of many Belgians is under pressure,” Belgian Prime Minister Alexander De Croo said in a press release.
In accordance with a 1996 law, the government’s proposal will now be sent to the social partners, who will have to try to agree on the exact terms of this bonus.
On Monday, the government also agreed on the distribution of the welfare envelope for those with the lowest allowances, pensions and salaries.
“These measures come in addition to all the social measures we have taken in recent months to fight against rising prices, especially the rise in energy prices. Exceptional measures ranging from an intervention of up to €1,000 on energy bills this winter to an extended social energy tariff, granted to one million families,” De Croo said in the press release.
The Prime Minister also explained that, beyond these measures, Belgium also has an automatic wage indexation mechanism, which is “a unique system that protects the population […] better than anywhere else against the loss of purchasing power due to inflation.”
“These indexation increases are paid by the government and our companies. It is a considerable effort that we must be aware of, even if there is no recipe to completely compensate for the consequences of the current energy crisis yet,” he concluded.
“The automatic indexation system will be maintained entirely, as well as the scale increases,” Finance Minister Pierre-Yves Dermagne said in a press release.
“The wage cushion will be set at 0% for 2023/2024, and a bonus may be granted for workers up to a maximum of €750,” he added.
Unemployment benefits will only increase by a maximum of 1.3% above the rate of inflation instead of the 3.5% initially planned. The money that was cut from this will go to help raise minimum wages. The lowest pensions will also be increased by 2%.
(Anne-Sophie Gayet | EURACTIV.com)
Source: euractiv.com
