Adaptation of the social security concept of remuneration: Increase of the amount of the exempted occasional gifts and gift vouchers

Back
Date:
12 Jul 2018

Under certain conditions, gifts in kind, in cash or in the form of payment vouchers, called gift vouchers, are excluded from the concept of remuneration and are therefore not subject to social security contributions.

If certain conditions - including the amount - are not respected, we are then dealing with remuneration subject to social security contributions.

In accordance with the Royal Decree of 3 July 2018, the exempted amounts are adjusted from 1 January 2017.

If the gift in kind or in cash or the gift voucher is distributed on the occasion of Saint Nicholas, Christmas or New Year, it is exempt from social security contributions if the total annual amount does not exceed EUR 40 (formerly EUR 35) per worker (plus EUR 40 (formerly EUR 35) per worker's dependent child).

If the cash gift or gift voucher is awarded on the occasion of a remission of an official distinction, it is exempt from social security contributions if the total annual amount per worker does not exceed EUR 120 (formerly:  EUR 105).

If the cash gift or gift certificate is awarded on the occasion of the retirement of a worker, the total amount can not exceed
EUR 40 (formerly EUR 35) per year of service, with a minimum of EUR 120 (formerly EUR 105) and a maximum of
EUR 1,000 (formerly EUR 875).

If the gift in kind, in cash or in the form of a gift voucher is given to a worker on the occasion of his/her marriage or the completion of the declaration of legal cohabitation, the amount granted can not exceed EUR 245 (previously EUR 200 per worker).

If the legal conditions are not respected, and more particularly if the value of the gifts or gift vouchers exceeds the above ceilings, the gift is considered as remuneration and the NSSO collects the ordinary social security contributions on the total value of the gift, except in the case of the marriage gift where the NSSO submits the difference only (which exceeds EUR 245 (previously EUR 200)).

For the sake of exhaustiveness, note that some of these gifts are also treated favourably at the tax level, but other ceilings and/or conditions may be used.

> Action point

Those who in some cases allocate a gift (voucher) to a worker will have to take into account the increased ceilings. Remember that at the tax level, other rules may apply.