Bonus (CBA 90): maximum 2.358 EUR for the year 2011

Higher maximum for the year 2011

Since 2008, companies can reward their employees with a ‘bonus’ (full title: non-recurring advantage that is linked to results). This bonus is not subject to tax or the regular social security contributions. However, employers do pay a special contribution of 33%.   

This amount may be granted under one or more plans. It is irrelevant whether the bonus is related to performance in 2010 or 2011. If the bonus paid exceeds the yearly maximum amount set, only the excess is taxed as a "classic bonus".

A success story

A study prepared by the Supreme Economic Council revealed that in 2009 more than three thousand enterprises introduced a bonus accounting for 0,7% of their total payroll.

Under certain conditions an existing bonus plan can also be fully or partially converted so as to benefit from the regime under CBA 90. That way, employees receive a higher net benefit, while the company also makes a savings (partly because no holiday is due on a bonus).