The Interprofessional Agreement 2021-2022 provides the sectors with a 0.4% margin for wage cost development. Most sectors are still examining how to implement this wage standard and which freedoms they will give companies in this regard. This should become clear in the coming weeks. If employers are given the option to convert this wage increase into an equivalent benefit, you may consider introducing an additional insurance for your employees or optimising an existing one. We briefly outline the various options for you.
Employers may choose to use the sectoral salary increase to introduce a collective hospitalisation insurance or ambulatory costs insurance policy, or to optimise their existing health care insurance. There are several insurance options on the market that meet the sectoral salary increase budget for both hospitalisation insurance and ambulatory costs insurance.
In joint committees with no sectoral pension system in place or where the salary increase is not spent in a sectoral pension plan, employers may choose to use the salary increase to supplement an existing company pension plan or, if no supplementary pension is accumulated for employees, to introduce a new company pension plan. However, if a new pension plan has to be started, not all insurers are prepared to do so if the premiums are limited.
A sectoral pension system is in place within some joint committees. These sectors may opt to apply newly negotiated salary increases for the sector plan’s higher contributions.
In joint committees that allow companies to act outside the scope of the sector plan through their own company pension plan, this business plan should at least be similar to the sector plan at all times. For these companies, then, an increase in sector plan contributions implies an increase in contributions from their company pension plan − unless the contributions were already higher than those stipulated by the sector plan. For those company plans, the sector will impose a deadline for submitting a certificate from their insurer that states that their pension plan is similar to the sector plan. If the sector increase is not to be (fully) used for the increase in pension contributions, the employer may choose to spend the amount on other similar benefits.
Within the framework of the Unity Statute, the spending of the sectoral salary increase on a pension plan should not magnify existing differences between manual workers and employees or introduce new ones.
Sectoral salary increases can also often be used for other similar benefits, such as the introduction of or increase in meal vouchers or EcoCheques. A combination of various benefits is also possible in most cases.
Each joint committee establishes its own framework with possible options for employers via a biennial sectoral agreement. It is useful to know that the sectors always stipulate a period during which companies must decide how they want to grant this sectoral salary increase. If the company does not opt for an equivalent benefit in time, the sectoral agreement’s default option will be applied (e.g. increase in gross salary, introduction of EcoCheques, awarding of an annual premium, etc.).
The minimum guaranteed return on supplementary pensions has been 1.75% since 2016. On 1 January 2025, following this long period at a constant level, the statutory guaranteed return will rise to 2.50%. What impact does this increase have on your company’s pension schemes?
By means of global benefits management, your organisation can easily run a strong employee benefits package worldwide. This structured, central approach provides a useful overview of all benefits and enables you to put together an attractive package in the war for talent. If social security is non-existent or too limited in one of the countries where you’re based, you can also provide your employees there with additional support through this insurance package. Employee benefits expert Kristof Baertsoen talks about the advantages of global benefits management in the latest episode of our video podcast Succes Verzekerd.
From 1 November 2024, hospitalisation insurance will cover the costs of a suicide attempt. The law of 21 April 2024 has amended existing health cost insurance legislation to this end.
Since 2019, local authorities have been encouraged to introduce or develop a supplementary pension scheme for the benefit of their contractual staff. If – among other requirements – this supplementary pension scheme is large enough, meaning in practice a contribution of at least 3% to a defined contribution scheme, the local authority is eligible for a discount of up to 50% on the additional annual shortfall contribution. This discount is adjusted by the latest pension reform to maintain the financial robustness of the Common Pension Fund.
Would you like to view the specific options within your joint committee in order to spend a sectoral salary increase on insurance for your staff? If so, contact your Employee Benefits account manager.