JC 302: COVID-19 and the year-end bonus

In a series of previous Infoflashes, we already discussed the impact of temporary unemployment COVID-19 on the sector benefits in JC 200 and in general. This time we take a closer look at the year-end bonus in JC 302 (hospitality sector).

Specific to this sector is that the year-end bonus is paid by the Social Security and Welfare Fund on the basis of monthly pre-financing.

Year-end bonus in the JC 302

Employees of this JC with an uninterrupted seniority of at least 2 months are entitled to a year-end bonus paid by the Hospitality Social Security and Welfare Fund.

The amount of the year-end bonus is determined on the basis of the actual days of attendance in the company. The social partners of this JC have also decided to treat certain types of absences as effective attendance. This is, among other things, the case for temporary unemployment.

Payment by the Hospitality Social Security and Welfare Fund

The year-end bonus is paid by the Hospitality Fund on the basis of the employer’s monthly pre-financing. 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 workers).

So the payment is made by the Fund, the calculation is done by your payroll consultant.

Impact of temporary unemployment COVID-19

No impact on the amount of the year-end bonus

Since temporary unemployment is treated as time worked for the calculation of the year-end bonus, there will be no impact on the amount of the year-end bonus.

An impact on the monthly advance payments

Since the majority of the employees were made temporarily unemployed due to COVID-19 during the compulsory closure imposed by the government in the hospitality sector, no (or less) wages were calculated. Consequently, advance payments to the Fund were also reduced or none have been made at all.

However, as mentioned above, the periods of temporary unemployment are treated as days worked for the calculation of the year-end bonus. Therefore, when the year-end bonus is calculated in December (or after leaving service) and communicated to the fund, this period will be included. If it then turns out that too little advance payment has been made to finance the year-end bonus (e.g. because the periods of temporary unemployment are treated as day worked), the fund will draw up an invoice to recover the deficit. If, on the other hand, you have made too much advance payment, the Fund will refund the balance.

It is therefore very important that you take this possible extra cost at the end of the year into account, as no notional wages are calculated for the periods of temporary unemployment.

More information

More details and an exhaustive analysis can be found in the sector document JC 302 year-end bonus available on our website.

You can also visit the website of the Hospitality Social Security and Welfare Fund.

Source:

• Collective Bargaining Agreement of 27 July 2010 (reg. no. 101.764), in force since 01.01.2011 for an indefinite period.