News

Two Royal Decrees dated 18 January 2003 and 18 February 2003 (Official Gazette of 6 March 2003 *) brought some amendments to the existing regulations with respect to luncheon vouchers and holiday pay calculation.

With effect from 1 January 2003, the maximum employer’s contribution for a luncheon voucher may now be EUR 4.91 per voucher (this was EUR 4.46 before this Royal Decree), while still exempt from social security contributions and not taxable for the beneficiary (but not tax deductible for the employer). The employee’s personal contribution per voucher must still amount to a minimum of EUR 1.09.

In respect of holiday pay calculation, the second Royal Decree explicitly states that holiday pay shall only be due on salary elements that are liable to the normal social security contributions. The new Royal Decree now prevents salary elements such as premiums paid into a group insurance, luncheon vouchers, commuting allowances, etc. from being liable to holiday pay calculation. A decision from the Belgian Supreme Court dated 4 February 2002 came to the opposite conclusion.

(*) http://news.hrservices.be?lk200303111