Delegates of non-profit organisations combining daily management and complementary commercial activities - Social security regime for employees applies

A delegate with as his/her main activity the daily management of a non-profit organisation is subject to the social security regime for employees even if the non-profit organisation engages in complementary commercial activities.

Article 3, 1° of the Royal Decree implementing the Social Security Act foresees that persons who, as delegates and for remuneration other than room and board, have as their main activity the daily management of associations or organisations which do not execute industrial or commercial activities are subject to the social security regime for employees. This provision envisages among others non-profit organisations.

The question arose whether a non-profit organisation which executes complementary commercial activities also falls within the scope of this provision.

On 13 October 2014 the Supreme Court indeed ruled that this is the case. The Court stated that a non-profit organisation which does not seek enrichment, or (in)direct profit for its members can execute complementary commercial activities. It is, however, necessary that this activity is essential for the realization of the non-profit purpose of the association.

This means that delegates who have as their main activity the daily management of a non-profit organisation are subject to the social security regime for employees, even if the non-profit organisation executes complementary commercial activities.

> Action point

Even if your non-profit organisation executes complementary commercial activities, the remuneration of the delegate with as his/her main activity the daily management is subject to social security contributions for employees.