Extension final payment date purchasing power bonus until 31 March 2024

The final payment date of the purchasing power bonus in the form of consumption vouchers is extended by 3 months until  31 March 2024. This is  a similar adjustment to the one made two years ago for the corona bonus. There is no change to the deadline for the decision to award a purchasing power bonus (arising of the entitlement), which remains 31 December 2023.

Before explaining this extension, we briefly recapitulate below the main principles of the purchasing power bonus.

Update: this measure has been published in the Belgian Official Gazette in the meantime.

Brief context

Companies that achieved good results during the 2022 energy crisis can or must award a one-off purchasing power bonus of up to 750€ to their employees in 2023.

The purchasing power bonus is awarded in the form of consumption vouchers (with the same spending options as luncheon vouchers or eco vouchers).

If the legal conditions are met, the purchasing power bonus benefits from advantageous social security treatment (only a special employer's contribution of 16.5% must be withheld) and is exempt from withholding tax/income tax and is also not taken into account for the wage standard.

More detailed info on this can be found in a previous Infoflash, as well as in our Infoflash Purchasing Power Bonus: Frequently Asked Questions.

Decision to award the purchasing power bonus: no later than 31 December 2023

 A distinction is made between:

• On the one hand, the date of the decision to award a purchasing power bonus and of the arising of its entitlement: collective bargaining agreement or individual agreement signed no later than 31 December 2023;
• And on the other hand, the date of effective award of the purchasing power bonus: no later than 31 March 2024.

As a reminder, the award of the purchasing power bonus, including any supplement on top of the sectoral purchasing power bonus, must be laid down in a collective bargaining agreement (CBA) at sectoral or company level. If a CBA cannot be concluded due to the absence of a trade union delegation or if it concerns a category of staff that is not normally covered by such a CBA, the award may be governed by a written individual agreement.

Effective payment date of consumption vouchers: no later than 31 March 2024

The effective payment date of the purchasing power bonus should be distinguished from the date of the decision to award a purchasing power bonus and of the arising of its entitlement.

"Effective award of the purchasing power bonus" means the uploading of the consumption vouchers onto the employee's electronic payment card or the handing over of the paper consumption vouchers to the employee.

The Royal Decree clarifies that the effective award of the purchasing power bonus in the form of consumption vouchers must take place no later than 31 March 2024.

Without this adjustment, purchasing power bonuses issued after 31 December 2023 would be fully considered as wages for social security and tax purposes, in addition to being taken into account for compliance with the wage standard.

Therefore, the extension is a good thing, as by mid December social dialogue was still ongoing in several sectors. In practice, an extension of the payment date means a little more time to correctly calculate the purchasing power bonus and order the consumption vouchers with approved issuing companies.

However, as an employer, you must also observe (to the extent possible) the deadlines and formalities that may be set forth in the sector-based collective bargaining agreement regarding the purchasing power bonus applicable to your company.

The above  extension of the latest payment date does not change the following formalities:

• the purchasing power bonus must still be included in the DmfA of (at the latest) the 4th quarter 2023;
• the purchasing power bonus must still be shown (at the latest) on the December 2023 payslip and on the 2023 individual account.

If you award a purchasing power bonus to your employees, notify your Payroll Consultant in advance.

Need a template of individual agreement or CBA regarding the purchasing power bonus? Our Legal Partners are at your disposal at legalpartners@partena.be.

Sources:  Royal Decree of 18 December 2023, amending article 19quinquies of the Royal Decree of 28 November 1969 implementing the Act of 27 June 1969 amending the Decree-Law of 28 December 1944 on social security for employed persons, Belgian Official Gazette 28.12.2023, Council of Ministers of 1 December 2023