The council of ministers has reached a consensus considering the corona premium in companies. This premium provides that companies that have performed well in the past (corona) year, can give their employees a one-time Corona premium in 2021.
The maximum amount is set to EUR 500 per employee and can be granted from the 1st of August until 31 December of the current year. On this corona premium, companies will have to pay an employer’s contribution of 16,5%. In the hands of the employee, the corona premium is free of taxes. In order to increase the net benefit for the employee, while limiting the wage costs for the employer the premium is exempt from personal income tax and fully deductible for the employer. This one-off premium falls outside the wage margin.
The corona premium takes the form of checks that can be used in several shops and establishments in order to specifically support consumption and contribute to the economic recovery after the corona pandemic.
For more information on these consumption cheques, we would like to refer you to our newsflash of 12 May 2021 and our newsflash of 26 of October 2020.
In case of any further questions, please do not hesitate to contact Bart Lombaerts or Christiaan Moeskops.