- 03 Dec 2013
For bonus plans which lead to payments in 2014, the exempted amount has been raised to 3,131 EUR (social security limit) and 2,722 EUR (tax limit).
The bonus paid in the framework of a plan to award "non-recurring result-based advantages", is, within yearly indexed limits, exempted from all taxes or ordinary social security contributions.
The maximum amount, which is linked to the health index, will be set at 3,131 EUR for 2014.
Since 1 January 2013 there is, however, a personal solidarity contribution of 13.07% due, apart from the special employer's contribution of 33%. This personal contribution must be deducted from the amount of the bonus.
Hence, the maximum amount which is exempted from taxes in 2014 is 2,722 EUR, being 3,131 EUR minus the personal social security contributions of 13.07%.
Should the employee receive more than 3,131 EUR in 2014, the amount of the bonus which exceeds the limit of 3,131 EUR will be subject to the ordinary social security contributions.
> Action point
When awarding result-based advantages in 2014, one needs to take into account the maximum exemption of 3,131 EUR regarding social security and of 2,722 EUR with respect to tax.