Bonus CBA No. 90: caps 2023

The indexed social and tax cap of the bonus of collective bargaining agreement No. 90 for 2023 has been published.

Principle

The industry agreement for 2007-2008 between management and labour established a bonus system commonly known as "CBA 90" or "non-recurring performance-related benefits".

The system allows employees to be paid a social security- and tax-concessionary bonus under certain conditions. 

Social security cap

The indexed social security cap amounts to 3,948 EUR in 2023 (subject to confirmation by the social security administration - cap 2022: 3,558 EUR).

A bonus awarded under CBA 90 is not subject to ordinary social security contributions if it does not exceed the social security cap set per employee per calendar year.

A 13.07% solidarity levy will, however, be deducted from the amount paid to the employee while the employer will have to pay a special employer's contribution of 33% on the bonus.

If the effective awarded bonus exceeds the cap, the excess amounts will be subject to ordinary social security contributions.

Tax cap

The indexed tax cap is 3,434 EUR in 2023 (subject to confirmation by the tax administration – cap 2022: 3,094 EUR).

The bonus awarded in the context of CLA no. 90 is exempted from personal income tax insofar as the tax cap per calendar year and per employee is not exceeded. This means that no withholding tax is deducted from the bonus as long as the tax cap is observed.