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What are good results?
The condition for awarding a Covid bonus is that your company achieved 'good results’ in 2021. However, the law does not clarify that concept and so it is still unclear what exactly is meant by it.
The social partners will have to interpret this concept. There is a real possibility that in certain sectors the Covid bonus will become mandatory if a company meets certain conditions (read: results). We expect more specific details after the sectoral negotiations this autumn.
So far, no collective agreements have been concluded that impose the Covid bonus. However, we already see them appearing here and there in the trade unions’ package of demands. The protocol agreement for the removal sector (Joint Committee 140.05) already provides for a Covid bonus of at least 125 euros. But here too, we are still waiting for a clear collective agreement.
Covid bonus in the form of consumption vouchers
The Covid bonus takes the form of a consumption voucher issued in the employee’s name. It is in fact the successor to the consumption vouchers that you as an employer could already grant to your employees in 2020.
With the introduction of the Covid bonus 2.0, the vouchers can be used for more things. Your employees can use them for more goods and services. For example to go to the hairdresser, take driving lessons or pay for beauty treatment.
Important dates
Given the limited validity of the vouchers, you should bear in mind two dates:
- As an employer, you can only grant the vouchers to your employees until 31 December 2021.
- Your employees can only spend the vouchers until 31 December 2022.
What amount can you grant?
You can grant up to 500 euros per employee under the Covid bonus scheme. The amount granted is treated favourably for tax and social security purposes.
The Covid bonus is:
- exempt from social security contributions;
- exempt from income tax;
- deductible as professional expenses;
- Only a special employer's contribution of 16.5% is due on it.
A consumption voucher of 500 euros therefore costs you, as an employer, 582.50 euros. For your employee, the voucher gives a net benefit of 500 euros.
Obviously you must not grant the bonus as a substitute for an existing wage benefit.
Who is eligible for the Covid bonus?
The Covid bonus cannot be granted on an individual basis. You must grant it either to all of your employees or to an objectively defined group. Naturally, when granting the voucher to a particular group, you must not define the group in a discriminatory manner.
How do you grant the Covid bonus?
If your company achieves good results, you can choose whether or not to grant the Covid bonus to your employees. This freedom may of course be restricted if the allocation is regulated at the sectoral level.
In principle, you will grant the bonus on the basis of a sectoral collective agreement or under a collective agreement at company level. If there is no trade union delegation in your company, you may grant the bonus under an individual written agreement. This is also the case if you want to allocate the bonus to a category of staff for which you do not usually conclude collective agreements.
Implement immediately or wait a little longer?
Even if you have made up your mind to grant the Covid bonus, it may be a good idea to wait a little longer.
As we mentioned earlier, the Covid bonus is likely to be part of the ongoing sectoral negotiations. Sectoral collective agreements can set a certain level for the bonus, or define the concept of ‘good results’ in a certain way. In addition, your sector may put forward another kind of benefit, which means you will have to grant another benefit to your employees besides the Covid bonus already allocated.
By waiting a while you can avoid unpleasant surprises. Yet you should not wait too long either, as the deadline for granting the Covid bonus is 31 December 2021.
Do not hesitate to contact HR Legal if you would like more information about the Covid bonus or if you need help with its allocation in your company.
