Coronavirus: EUR 167 million subsidy for the horeca sector

In our infoflash of 2 November 2020, we already informed you about the federal government's intention to grant a one-off subsidy to the Social and Guarantee Fund for the hotels, restaurants, cafés and related businesses. This subsidy must guarantee the payment of a full end-of-year bonus. Meanwhile, the law that makes this decision final has appeared.

End-of-year bonus in JC 302

We remind you that in this sector the end-of-year bonus is paid by the Social and Guarantee Fund on the basis of monthly pre-financing by the employer. This contribution is equal to 12 % of the amount on which the social security contributions of the previous month were calculated (108 % of the gross wage bill for manual employees).

As the majority of the employees were placed in temporary unemployment COVID-19 during the compulsory closure of the horeca sector by the government, no (or less) wages were calculated Consequently, advance payments to the Fund were also reduced or none have been made at all. On the other hand, the periods of temporary unemployment are treated as days worked for the calculation of the end-of-year bonus! This can lead to financing problems, because following the payment of the end-of-year bonus, the individual employer will receive an additional invoice to compensate for the periods of temporary unemployment treated as days worked (but not covered by advance payments).

Subsidy for the payment of the end-of-year bonus

To avoid this situation, the federal government is now providing aid! The horeca sector’s Social and Guarantee Fund receives a one-off subsidy of EUR 167,000,000 to cover periods of temporary unemployment. So it is no longer up to the employer to finance this specific assimilation.

However, bear mind that this subsidy only covers periods of temporary unemployment. If an employee was absent for another assimilated reason (see our sector documentation for more information), this cost will of course still have to be borne by the employer. Besides, the subsidy may not be used to cover expenses relating to staff costs, operating costs and investments.

Source:

• Collective Bargaining Agreement of 27 July 2010 (reg. No. 101.764), in force since 01.01.2011 for an indefinite period.
• Act of 24 November 2020 on support measures in the context of the COVID-19 pandemic, Belgian Official Gazette 30.11.2020.