Collective bonus depending on results: CBA 90: Maximum EUR 3,219 gross in 2016

For “CBA 90” bonuses to be paid in 2016, the maximum exempted amount is considerably higher than last year since the indexed ceilings have been fixed at EUR 3,219 (social ceiling) and at EUR 2,799 (fiscal ceiling).   

The bonus, granted within the framework of a plan for granting non recurrent advantages depending on results, is within the limits of a yearly indexed ceiling free of taxes and normal social security charges.

This ceiling has been raised by the Michel I government as from 1 January 2016 (see our newsflash of 30 December 2015 ).

The indexed amounts for 2016 are now known.

For the exemption of normal social security charges, the maximum indexed amount is equal to EUR 3,219 gross (as opposed to  EUR 3,130 in 2015).

However, it should be noted that, since 1 January 2013, the “CBA 90” bonus is subject not only to a special employer’s social security contribution of 33%, but also to a personal solidarity contribution of 13.07% that is to be deducted from the gross amount of the premium. 

For the tax exemption, the maximum indexed amount is fixed at EUR 2,799 for the year 2016 (i.e., EUR 3,219 minus the personal solidarity contribution of 13.07%).

If these ceilings are exceeded, the surplus is subject to normal social security charges and to income tax.  

> Action point
When granting “CBA 90” bonuses in 2016, you should take into account the new maximum exemption of EUR 3,219 gross for the social security aspect and EUR 2,799 for the fiscal aspect.