Overtime hours – everything you need to know about the new measures

Jill Engelen   |  

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Jill Engelen

Jill is het aanspreekpunt voor loonadministratie en juridisch advies op vlak van sociale wetgeving.

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The new Interprofessional Agreement (IPA) includes a number of measures that make the performance of overtime hours financially attractive for employer and employee. We are happy to list them.

Voluntary overtime

The favourable arrangement of the 120 voluntary overtime hours on an annual basis will be extended to all sectors and will be extended until the end of 2022. No allowance has to be paid for these overtime hours and no recovery takes place. They are paid at 100% and are exempt from social security and withholding tax. For the employee this means that net is also gross. In order to apply this, a written agreement must be concluded with the employee for a term of six months maximum that can be extended.

Fiscally favourable ordinary overtime hours

There is an important tax advantage for both employer and employee for normal overtime hours that entitle the employee to a statutory overtime allowance of 50% or 100% on Sundays and public holidays. The employer is not required to transfer part of the withholding tax withheld to the tax authorities. And the employee pays a lower withholding tax. The social partners want to apply this benefit for 180 overtime hours per employee on an annual basis. This would apply to all sectors and for a long period of time, namely until 30 June 2023. For companies in the hospitality sector, the limit of 360 fiscally favourable overtime hours on an annual basis will remain in force.

Ask the Bofidi team for advice

Is the system of voluntary overtime hours of interest to your company? Contact the Bofidi experts for more information and a model agreement. We should be delighted to help you.