Remuneration

Together with you and our HR Advisory department, we outline your company's salary policy. We look at the various reward elements, paying close attention to any novelties. You can also contact us for Payroll Outsourcing!

Alternative forms of remuneration

Alternative forms of remuneration

The most common alternative forms of remuneration are:

  • Laptop, peripherals for home work, smartphone + subscription, Bring Your Own Device fee, tablet
  • Company car, company bike
  • Hospitalization insurance, group insurance, expense allowances (home work, meal, representation, clothing…)
  • meal vouchers
  • Reimbursement of individual pension savings, …

Ruling on costs specific to the employer

Certain expense allowances can be reimbursed on a flat-rate basis. However, if you want legal certainty about certain costs, we can always request prior approval from the tax authorities.

Some popular eye-catchers

  • Stock options/warrants: paying bonuses in the form of options or warrants is advantageous for the employer because he does not have to pay social security contributions, as is the case with a cash bonus. As a result, the employee also retains more net of his bonus. In addition, the employee is usually taxed on an often lower benefit in kind (flat-rate).µ

  • Profit premium: employers can allocate part of their profit as a bonus to their employees in a very simple and accessible way. A profit premium is a collective premium and must be awarded to all employees. An employer can choose between the identical profit premium or the categorized profit premium. The employer does not pay employer social security contributions on the profit premium. However, a solidarity contribution of 13.07% is owed by the employee. In tax terms, this profit premium is taxable at 7%. For the company, the gross profit premiums awarded are not deductible as professional expenses.

  • Royalties: royalties are rights associated with the exploitation of a copyrighted work. Certain professional groups will have part of their work reimbursed in the form of copyright. Copyright income is considered movable income and is taxed at a flat rate of 15 percent. In addition, authors can enjoy an important fixed cost on the income received.

  • Innovation premium: employees who launch innovative proposals that result in a real value creation for the company can be financially compensated through an innovation premium. These proposals can be very diversified and relate, for example, to improvements to the existing product range, optimizations in the production process, automation in the administration, increasing safety or well-being in the workplace, and so on. The innovation premium can amount to a maximum of one gross monthly salary and this premium is fully exempt. So no social contributions or personal tax is paid on this. Moreover, this premium is fully deductible for the employer.

HOW OUR ADVISORS CAN HELP YOU

HOW OUR ADVISORS CAN HELP YOU

VGD is happy to inform and guide you in the introduction of alternative forms of connection within your organization.

Contact our advisors for more information.

Contact

Questions about remuneration? Contact our advisors!