Additional voluntary overtime in critical sectors

As explained in our previous newsflash, the number of voluntary overtime hours in critical sectors is increased to 220 hours for the period from 1 April 2020 to 30 June 2020. The legislator has now also decided to treat the additional voluntary overtime during this period more favourably from a fiscal and social security point of view.

The Government took a number of exceptional temporary measures by the special powers decree n° 14 of 27 April 2020 with the aim of ensuring the continuity of critical and vital sectors during the COVID-19 pandemic.

One of the measures is to increase from 100 voluntary overtime hours (= basic quota) to 220 voluntary overtime hours for the critical sectors in the period from 1 April 2020 to 30 June 2020. During this period, workers will thus be allowed to work an additional 120 voluntary overtime hours (= additional quota). These overtime hours are paid at the normal rate; they do not entitle workers to overtime rest or overtime pay.

The additional quota of 120 voluntary overtime hours will now also be exempted from income tax and social security contributions to the extent that they are performed in the period from 1 April 2020 to 30 June 2020.

Action point

The 120 additional voluntary overtime worked from 1 April 2020 to 30 June 2020 in the critical sectors will be exempted from income tax and social security contributions. The gross salary will therefore be equal to the net salary.