Under certain conditions, the employer may grant bonuses that are fully exempt from tax and social security contributions. These bonuses can be distributed in the form of gifts, vouchers or cash.
The most advantageous premiums include the following:
- Marriage bonus/legal cohabitation
This premium is exempt if the amount does not exceed EUR 245 and is deductible for the employer.
- Birth bonus
The birth bonus is exempt from social security contributions but is only exempt from personal income tax if it does not exceed EUR 50. Moreover, it is not deductible for the employer.
- Single innovation premium
The amount of the bonus can be considerable, as it can be equivalent to the employee’s gross monthly salary. If the conditions for granting the bonus are met and respected, it is fully exempt from social security contributions and taxes. However, it is not tax deductible for the employer.
The innovation bonus can be paid to an employee as a reward for a particular innovation. The concept of innovation is not legally defined and the administration is free to interpret it as it sees fit. Examples include the following situations: An employee has solved a technical problem in the production machinery. An employee has developed a new product for the company.
In order to apply this advantageous scheme, the employer must, among other things, inform the FPS Economy that he wants to grant this type of bonus and must fulfil certain additional formalities.
The amount of the innovation bonuses that a company distributes to its employees may not exceed 1% of the company’s gross payroll.
Finally, this bonus may be granted annually to a maximum of 10% of the company’s employees or a maximum of 3 employees if the company has less than 30 employees.
