Construction works sector: extension of tax relief for overtime work

When workers work overtime on a temporary or mobile construction site where the employer uses an electronic attendance recording system, the associated tax relief is awarded for the first 180 hours of overtime. This cap of overtime hours will be increased but only after approval from the European Commission.

Tax relief for overtime work

Working overtime hours that entitles the worker to a statutory overtime pay gives rise to two tax advantages:

• for the worker: a tax reduction (with a reduction in withholding tax);
• for the employer: an exemption from advance payment of payroll withholding tax

Cap for overtime hours

Both tax benefits are capped to the first 130 overtime hours per income year and per worker.

However, the following deviating caps apply:

• 180 overtime hours for the period from 1 July 2021 to 30 June 2023 (see our Infoflash of 30 December 2021);
• 360 overtime hours for the hospitality sector. For employers falling under the Joint Committee for temporary agency work, this cap applies if the user falls under the Joint Committee for hotels;
• 180 overtime hours for the sector of construction work, provided that the worker is employed by an employer who uses an electronic attendance recording system on temporary or mobile construction sites.

Cap for overtime hours is increased for the sector of construction work

The existing, derogatory overtime cap of 180 overtime hours for the sector of construction work is increased to 220 overtime hours. The requirement that the worker works overtime on a temporary or mobile construction site where the employer uses an electronic attendance recording system remains in place.

New cap for overtime hours for road works

A new, different cap for overtime hours of 280 overtime hours is put in place for overtime hours worked by workers for employers who:

• Mainly perform road works, excluding the construction of underground pipes and cables, or railroad works;
• and for those whom the government imposes to work on weekends on holidays or at night;
• provided that the employer uses an electronic attendance recording system at the temporary or mobile construction sites.

Entry into force

The entry into force of the two caps for overtime hours is subject to the prior approval of the European Commission. Therefore, the new caps for overtime hours cannot yet be applied.

If the European Commission gives its approval, the increase will apply to overtime hours worked from the first day of the second month following such approval. We will keep you updated on the situation.

Source: Programme Law of 27 December 2021, Belgian Official Gazette of 31 December 2021.