In the latest episode of Succes Verzekerd, the video podcast from Vanbreda Risk & Benefits, our colleague Rebecca Bekaert delves into employee benefits. How does an optimised benefits package enable you to maintain your edge as an employer? What kinds of cover still tend to be overlooked, and what can you do to change that? And what impact does the increase in the retirement age have on your personnel insurance? Find out here.
Before we delve into the many advantages of a balanced employee benefits package, we would like to explain exactly what this term means. Employee benefits, in practice often abbreviated to EB, include a wide range of personnel benefits or extra-statutory benefits that reflect your corporate culture. The most common are:
However, costs such as ambulatory care, dental care, guaranteed income or a supplementary pension plan can also be part of an employee benefits package.
The saying “unknown, unloved” is particularly true of supplementary pensions. Most employees don’t know exactly what group insurance of this kind entails, so they tend to undervalue this benefit
Extra-statutory benefits are often attractive from a tax viewpoint and put you as an organisation in a strong position in the war for talent. They are therefore an ideal way for employers to diversify on the labour market. In most cases they are also a far better option for employers and employees than paying extra salary.
In a tight labour market, you can make a difference to your ability to attract and retain talent by providing extensive extra-statutory benefits
Studies show that many Belgians overestimate the value of the statutory pension. Did you know that the average statutory pension after a full career is just 45-50% of your final salary?
That makes a supplementary pension an important – but still often underestimated – addition to the statutory pension. This extra-statutory benefit is an additional capital sum that your employees can build up through your organisation’s group insurance and receive on top of the statutory pension when they retire.
Supplementary pensions are subject to a mandatory minimum return. If this is not achieved, it is up to you as an employer to make a top-up payment to ensure that your employees don’t receive less than the minimum. Given that the minimum return will increase from 1.75% to 2.50% on 1 January 2025, this is the ideal time to take a closer look at your supplementary pension plan.
As a caring employer, you want to provide a meaningful supplementary pension for your personnel. If you have the financial room for manoeuvre, opt for a 3% supplementary pension instead of 1%. This will make a significant difference to every employee on retirement, especially if you take into account the rising cost of living.
Tip: it’s a good idea to communicate regularly and transparently about this cover. A supplementary pension is as valuable for school-leavers as it is for more seasoned employees. Because retirement is still a long way off for some, they tend to overlook and therefore fail to fully appreciate this benefit.
Pension accrual doesn’t sound sexy, but it’s a crucial element in a meaningful remuneration package that your employees will be grateful for later on
The retirement age in Belgium will rise over the next few years, to 66 in 2025 and 67 from 2030 onwards. Payouts are currently based on a retirement age of 65 in most insurance policies. These changes therefore raise many insurance- and non-insurance-related questions for both employers and employees. How can you anticipate these changes as an employer? And what action or actions should you or can you take to ensure all your employees remain well protected?
You can opt to align your various insurance policies with the rising statutory retirement ages. Naturally, if you extend the age until which benefits can be received, the insurance premium will increase too. If you do not do so, you run the risk of discriminating within your current workforce. For example, a 66-year-old employee will suddenly be without cover if he is absent for a long period due to illness, while a 35-year-old employee in the same situation will be covered.
Pension accrual always stops at your statutory retirement age
Given that we will all have to work for longer, the importance of good mental and physical health for your employees will become even greater in the years to come. As an employer, it pays to invest in preventive health initiatives and reintegration programmes.
Are you the victim of an accident resulting in physical injury for which someone else is liable? If so, you are entitled to compensation. Thanks to the new 2024 Indicative Table, compensation for such injuries is now considerably higher. What’s changed and what does it mean? Find out below.
Increasing numbers of people on long-term sick leave and persistent labour market shortages have put the subject of incapacity for work high on the agenda. During a recent symposium, Lode Godderis, Professor of Occupational Medicine at KU Leuven and CEO of IDEWE, shared his insights into this complex challenge. He put this fundamental question to those present: are we addressing this growing problem the right way?
More than 500,000 Belgians are on long-term sick leave – and the number continues to grow by 5.5% every year. The impact on our social security system and on employers is significant. But there’s good news: the federal coalition agreement for 2025-2029 includes a definite commitment to change this. With a strong focus on prevention, faster reintegration and shared responsibility, government policy is shifting from a reactive to a proactive approach.
As an employer with activities in multiple countries, you want your employees to enjoy the same quality of healthcare and insurance wherever they are in the world. The challenge lies in managing employee benefits packages efficiently in a way that’s both compliant with local legislation and consistent with your global HR strategy. So how can you turn your international approach into an asset in the war for talent? And how can Vanbreda Risk & Benefits help you to do so?