Payroll newsletter Q1 2024

1. Mandatory indexations January 2024

As from January 1st , 2024 a mandatory adjustment will take place following the consumer price index for the wages of the following joint labour committees: 

Please note that it should always be verified whether indexation is applied to all functions in the applicable joint labour committee. Your payroll consultant could advise you in this respect. 

In case your company is subject to one of the abovementioned joint labour committees, our payroll team will process the indexation in January 2024.
 

2. Overview public holidays 2024

Below is an overview of the Belgian public holidays for 2024:

The employer must pay the normal salary for these days.

When a public holiday falls on a Sunday or another day which is normally a non-working day, it must be replaced by a replacement day on a normal working day. In 2024, this is the case for the public holiday of July 21st, 2024. Please inform your payroll consultant when the employee(s) will take this replacement day so that this could be processed in the payroll.

3. Company cars: the CO2 contribution on January 1, 2024

The formula for calculating the solidarity contribution that employers owe on company vehicles will be adjusted on January 1, 2024. 

On January 1, 2005, a solidarity contribution payable by the employer on company cars was introduced, based on CO2 emissions. This employer contribution, which is calculated every month, must be paid on a quarterly basis to the Belgian social security authorities (by means of the Belgian social security return).
In concrete terms, this solidarity contribution is calculated based on the CO2 emissions of the vehicle and on a fixed amount that depends on the type of fuel and is indexed on January 1 every year. From January 1, 2024, employers’ solidarity contributions on company vehicles will be calculated based on the following formula:

In addition, from January 1, 2024, the amount of the CO2 contribution may under no circumstances be lower than 31,99 EUR / month.

4. Several types of vacation

In general, Belgian law provides that full-time employees are entitled to 20 legal vacation days each year.

Each employee subject to the Belgian social security regime builds up vacation rights for these days during the ‘holiday service year’ (2023). Only in the following calendar year, the so-called ‘holiday year’ (2024), the employee may take his/her leave days. Whether you get the full amount or only part of it depends on the number of days you worked in the previous year. 

Certain sectors also work with working time reduction days: e.g. an employee working 40 hours in a sector where the 38-hour week is in force, saves two extra hours of leave every week worked. On an annual basis, the employee is then entitled to 12 extra working time reduction days. 

The significant difference between legal vacation days and working time reduction days is that the latter are calculated based on the performance in the current year of service (2024), while the legal vacation days are calculated based on the holiday service year (2023). 

In addition, an employer may decide to grant his personnel additional (extra-legal) vacation days on top of the legal vacation. The rules to grant these are entirely up to the employer. These holidays are often granted for unofficial holidays (such as second Christmas or bridging days). 

The main advantage of these extra-legal vacation days is that the employer can decide whether the employee can carry these holidays over to the following year or whether this is limited to a certain period. This carry-over is not possible for the 20 legal vacation days and the working time reduction days. 

If your payroll is already processed by Mazars, we are setting up the vacation counters for 2024. If you have any questions regarding the above, please contact one of our payroll consultants.

5. Announced flash audits 2024

Every year, the Belgian Information and Social Research Department (in Dutch: ‘Sociale Inlichtingen- en Opsporingsdienst’ (SIOD); in French: ‘Service d’Information et de Recherche Sociale (SIRS)’ announces which sectors can expect to undergo the so-called “flash audits”. These flash audits are announced national inspections in which the company is subjected to several inspections at the same time, from the labour inspectors and the different services of the social security authorities. 

Flash audits have an informative and preventive character. Nevertheless, the inspectorates can (and will) also act decisively during flash audits and, if necessary, issue an official report when they have encountered serious infringements. 

The following flash audits are planned for 2024: 

• January 2024: the construction sector (including electrical engineering and metal); 
• March 2024: the relocation sector; 
• June 2024: the hotel and catering industry (HORECA); 
• September 2024: the green sectors; 
• November 2024: the transport sector (incl. bus & truck). 

If your sector is not included in the announced planning for 2024, please note that the Belgian social authorities can always perform an unannounced inspection of your company. Over the past years, the Belgian social authorities have made stronger efforts in their fight against social fraud. As such, social legislation must always be respected.  

In addition to offences of undeclared work (NSSO declaration) and illegal employment (single permit and work permits), the social inspectors will examine, among other things, the following in your company: 

• the labour regulations including all work schedules and the mandatory annexes (such as the annex psychosocial risks and the new mentions in connection with the predictable working conditions and the labour deal); 
• the employment contracts and annexes (part-time employment contracts, student contracts, agency contracts); 
• the DIMONA declaration; 
• the compulsory work accident insurance; 
• in addition, inspectors will also check for false self-employment and minimum wages. 

If desired, our legal specialists can further assist you in preparing your company for these inspections and ensure your company is compliant with the social legislation.

6. Increase of commuting allowance 2024

As from 01/01/2024 the (commuting) mileage allowance (total amount accepted by the NSSO) will be increased to 0,4269 euro/km. This amount is applicable for a period from 01/01/2024 – 31/03/2024.
This is only applicable, if agreed upon in the company, to employees using private transport for commuting and for business travel. 

As from 01/01/2024 the bike allowance (total amount accepted by the NSSO) will be increased to 0,35 euro/km. This amount is applicable to employees using a bike for commuting and for business travel. 

What is new is the introduction of a maximum amount on an annual basis. The total amount of the bike allowance exempted of NSSO contributions on an annual basis is limited to an amount of 2.500 euro per employee. Any excess would be subject to NSSO contributions and taxable as normal salary.

7. Increase of homeworking allowance 2024

As from 01/12/2023, the homeworking allowance (total amount accepted by the NSSO in case of structural and regular homeworking) will be increased to 151,70 euro/month.

8. Increase of the work resumption premium

In case an employee is incapacitated for work for at least 3 months and resumes work, the employer can apply for a work resumption premium. 

With effect from 1/1/2024, that premium can be increased to 1.725 euro per employee. 

For more information about the work resumption premium, we  refer to our Payroll newsletter of 2023, Q4.

9. Limitation of wage seizure and wage transfer

As a reminder, when the creditor is seeking to obtain payment of the amounts due to him by his debtor, he may apply directly to the employer of the debtor. The creditor can do this by seizure or transfer on the net salary of the employee. 

Please note that only a part of the net salary can be transferred or seized. Indeed, the law provides income brackets within which the amount that can be transferred or seized, is determined. One speaks of the wage amounts susceptible to transfer or seizure. 

The method of calculating these amounts differs depending on whether they are professional income or replacement income. 

These new amounts subject to transfer or seizure must be applied for all payments made from 1 January 2024.

10. Cost proper to the employer - Belgian tax form 281.10/20

Since January 1st 2022, the actual amount of costs proper to the employer must be stated on the annual Belgian tax form 281.10 (employee) or 281.20 (director) and on the summary statement 325.10/20. 

As such, the Belgian tax authorities want to be able to exercise more control over the expense reimbursements an employer grants to its employees and/or directors. If this reporting obligation is not complied met, the company risks - depending on the type of expense reimbursement - an administrative fine, a secret commission taxation and/or the non-deductibility of the expense reimbursement as a professional expense.

11. NSSO - Structural reduction from 1 January 2024 - Adjusting the salary cap

As a reminder, the structural reduction is a measure to reduce basic employer’s social security contributions. 

The amount of the reduction varies according to the category to which the employee belongs, his quarterly salary and the performance. 

Public sector and private sector employers enjoy a structural reduction in their social security contributions for employees fully subject to social security, divided in 3 categories and provided they meet certain conditions.

From 1 January 2024, the amounts of this quarterly reduction will change.

The amounts are as follows:

12. Adjusted wage limits for 2024

On 01/01/2024, the salary ceilings from the Employment Contracts Act will increase. The reason is annual indexation. The ceilings are important for the application of the training clause and non-compete clause.

13. Non-recurring result-related benefits: amounts 2024

Non-recurring result-related benefits are benefits tied to the collective results of a company, a group of companies or of a defined group of employees, based on objective criteria. 

This system allows the employer to grant an advantageous bonus based on collective objectives. Up to a certain amount, this bonus enjoys favourable social and tax treatment. 

The limit amounts will be adjusted as from 01/01/2024. 

At the social level: 

• the employee must pay a solidarity contribution of 13.07% on the amount granted; 
• the employer must pay a patronage contribution of 33% on the amount awarded.

These contributions are payable to the extent that the bonus does not exceed a certain limit amount. Otherwise, the excess amount will be subject to the levy of ordinary social security contributions. 

For 2024, the limit amount is 4.020 euro per employee. 

At the tax level, no professional withholding tax will be withheld if the limit amount is not exceeded. 

For 2024, this limit amount is 3.496 euro per employee.
 

14. Mobility budget: new formulas

Companies introducing the mobility budget give employees the opportunity to exchange their company car for a budget. This budget can be freely spent in an environmentally friendly alternative (environmentally friendly company car or sustainable means of transport (e.g. electric bicycle)) with any remaining balance being paid out at the end of the year. 

This benefit will be used by companies to make the salary and mobility package more attractive. 

Through the mobility budget, employees will be able to exchange their company car in one or more of the 3 following pillars:

• pillar 1: a more environmentally friendly car (if provided by the company); 
• pillar 2: with the calculated budget, the employee can opt for alternative mobility ((electric) bicycle; electric scooter; public transport subscription; ...); 
• pillar 3: if the entire budget was not spent, it is paid out at the end of the year (subject only to social security contributions). 

As from January 1, 2024, the method of calculating the mobility budget is laid down by the Royal Decree (hereafter: RD) of September 10, 2023. The employer can now choose between 2 formulas: 

1. Actual costs: this formula consists of an average over the last 4 years (or less if applicable) of all actual costs incurred by the employer to finance an environmentally friendly company car and related costs under the company car policy (for example: cost of the car, cost of leasing, fuel and electricity costs, parking costs, etc.). The list of costs that can be taken into account for the calculation are included in the RD. Note that the car policy should also determine whether these costs are effectively applicable. If not, they cannot be taken into account for calculating the budget. 
2. Lump-sum value formula: the formula differs depending on whether it is a rented/leased car or a purchased car. In any case, the formula has a “fixed” component and a “variable” component relating to the number of kilometres driven for commuting, and a number of purely private kilometres set at a flat rate. 

If you want more details about the mobility budget or if you have any questions about the implementation of this benefit, do not hesitate to contact our payroll or Labour law team.

 

15. New regulations of the holiday scheme 2024

The holiday scheme will be amended in 3 different areas: 

1) Retention of statutory holidays during certain suspensions 

As from holiday year 2024, the employee will retain the statutory holidays that coincide with the suspension causes determined by law (such as illness/accident, maternity, and paternity leave, etc.) and will be able to take them later. 

Before the new regulations, the rule was “the first cause of suspension prevails”, i.e. if an employee fell ill during their statutory holiday, these holidays were lost.  

From 2024, statutory holiday days will be converted to days of incapacity of work.  

Please note that there are some additional conditions in case of sickness during statutory holiday. 

Please also note that the employment regulations must fix the modalities in case of sickness or accident during the statutory holidays.
 

2) Carry-over and payment of unused statutory holidays 

If the employee is unable to take their statutory holidays during the current year, due to the suspension causes defined by law, these days may be carried over for a period of maximum 24 months depending on the suspension cause. 

Please note that unused days carried over will be paid out by the employer in advance, and no later than 31/12 of the holiday year. 

3) New settlement of the holiday certificate 

When an employee leaves a company, the single and double holiday pay for the untaken statutory holidays and for the statutory holidays already accrued are paid out by the employer (=leave holiday pay). 

The amounts paid are listed on the holiday certificate. These amounts must then be deducted by the new employer. 

Until now, leave holiday pay (single and double) is deducted in the month in which the double holiday pay is paid. As from 01/01/2024, deduction of the single leave holiday pay is done in 2 stages: 

• each time an employee takes a holiday, a lump sum of 90% of the gross daily wage is deducted for that day from the single leave holiday pay the employee receives for that day; 
• a final deduction is made in December (or the month of leaving the company). 

Concerning the double holiday pay, nothing changes.  

For more information about this topic, please contact our labour law specialists.

 

16. The ‘Federal Learning Account’ entry into force at the lastest on April 1, 2024

On December 1, 2023, the Act of October 20, 2023, on the Establishment and Administration of the Federal Learning Account was published in the Belgian Official Gazette. This Act will enter into force on a date determined by the King and at the latest on April 1, 2024. 

The Federal Learning Account is a digital database in which various data of the employees are registered. The data concerned are, amongst others, the identity of the employee, the working regime of the employee, the JLC (Joint Labour Committee) under which the employee is situated, the number of learning days to which he is entitled the current year, the number of learning days the employee has taken for a followed training, the number of learning days to be transferred to the next year, and so on.  

The Federal Learning Account has been introduced in the light of the Labour Deal of October 3, 2022, based on which employees have an individual learning right. 

For 2023, each employee of a company with more than 20 employees has at least 4 learning days and each employee of a company with less than 20 employees has at least 1 learning day. 

For 2025, this is respectively at least 5 days and at least 1 day.

To keep up with the balance of the number of learning days already taken by an employee, the government introduced a transparent and uniform way to keep track of this. 

The new Act on the Federal Learning Account stipulates certain obligations for the employers of the private sector. Please find an overview of some of the obligation’s underneath: 

• registration in each quarter of a calendar year (and at the latest within the deadline provided for the multifunctional declaration to the National Social Security Office) of the data regarding the individual learning right of their employees; 
• it is the employer’s responsibility to make sure that all registered data are correct. Thus, the employer has the obligation to update the data of his employees each time this is necessary. 
  The employee himself will also be able to access the Federal Learning Account electronically through www.mycareer.be, which will be monitored by Sigedis, an entity of the institutions of Belgian Social Security. Consequently, the employee has the right to ask the employer to alter data which is not correct; 
• Sigedis will calculate based on the data registered in the Federal Learning Account the individual learning account of each employee. The employer has the obligation to verify if this is correct; 
• for all employees who already have an employment agreement on the date of entry of the Act (i.e. at the latest April 1, 2024), the employer has the obligation to register their data at the latest 6 months after the date of entry into force of the Act. 

Employers who do not fulfil this obligation will be put on a list, which will be made public on the site of the Federal Public Service Employment Labour and Social Dialogue if they do not remedy their obligations within 30 days after being warned about their non-compliance. 

For more information about this topic, please contact our labour law specialists.

 

17. Flexi jobs: adjustments as of January 1, 2024

The flexi-job system is an advantageous system where employees working at least 4/5 as well as pensioners can earn a little extra in several sectors.  

The rules regarding flexi-jobs that were in place have been adjusted in several areas with the entry into force on January 1, 2024, of the Programme Act of December 22, 2023. 

In short, these adjustments include: 

• an expansion of the scope of the applicable sectors; 
• new conditions of execution for the employee;
• introduction of a minimum basic wage and a maximum amount of the flexi-wage;
• obligation to organise a consultation within the works council regarding the application of the flexi-job system each calendar year in which the flexi-job system is used in the company;
• increase of the special social security contribution of the employer on the flexi-wage and the flexi- vacation pay (i.e. 28%);
• limitation of the tax exemption (12.000 EUR/year), unless an exception applies. 

For more information about this topic, please contact our labour law specialists.
 

18. Bicycle allowance

As of May 1st , 2023, all private sector employees who cycle to work are entitled to a bicycle allowance (under certain conditions). A general right to a bicycle allowance was established in the collective labour agreement, CLA no. 164. This to encourage commuting by bicycle.

As of January 1st , 2024, this bicycle allowance has been increased to 0,35 EUR per kilometre. 

This allowance is exempt from social security contributions and taxes and will be indexed annually. The employer must grant a bicycle allowance up to a maximum distance of 40 kilometres per day (20 kilometres there and 20 kilometres back).
 

19. Sodexo becomes Pluxee

Regarding the meal vouchers and Eco vouchers, we also inform you that the former provider ‘Sodexo’ has changed its name and will henceforth be called ‘Pluxee’. 

In principle, this has no influence on orders and payments for you, nor on the operation of the delivery of meal and/or Eco vouchers (if applicable), but please take into account that all communication towards the employees with regard to their cards, passwords, balances as well as the invoices towards you as employer, will be drawn up under the name Pluxee.

20. Deadlines