The consumption premium in Belgium: Modifications as of 1 August 2021

While the COVID-19 crisis resulted in temporary unemployment for a considerable number of workers, it resulted in extra work for others. To compensate the latter for the work done, and as a support for businesses that had to close during spring 2020, consumption cheques and the consumption premium were introduced.

One of the changes that came into effect on 1 August 2021 concerns precisely the places where consumption cheques or the consumption premium can be used. This is now the case in:

• companies in the hotel, restaurant or pub sector
• small retail stores that sell goods, or offer repair services, in the physical presence of the consumer
• wellness centres
• activities falling within the scope of the joint committee for touristic attractions (joint committee n° 333)
• movie theatres
• organisations within the cultural sector that are subsidised by the government
• bowling halls, swimming pools, fitness centres or sport clubs
• beauty parlours, pedicure salons, massage parlours, barber shops and tattoo shops
• driving schools

Consumption cheques or the consumption premium can be granted to any worker. There is no requirement that the beneficiary was already in service during the first wave of the COVID-19 pandemic and effectively worked in that period.

For the consumption premium, there is the condition that the employer must have obtained “good results” during the COVID-19 crisis. The legislation does nevertheless not define this more in detail, hence there is room for discussion on what is needed to qualify as having “good results.”

Consumption cheques or the consumption premium must be introduced by means of a collective bargaining agreement. If there is no trade union delegation or for staff for which it is not usual to sign collective bargaining agreement, a written agreement with the employee involved is also possible.The maximum amount of the consumption premium is EUR500 per employee.

From a tax point of view, consumption cheques or the consumption premium is exempt from income taxes. They are also deductible for corporate tax purposes.

Consumption cheques or the consumption premium are exempt from normal employee and employer social security contributions. There is, nevertheless, a special employer social security contribution of 16.5%.

The legislation does not expressly deal with the employment law regime of consumption cheques or the consumption premium, hence the general rules apply. As these benefits are exempt from social security contributions, they are also excluded from the calculation basis of holiday pay. Since consumption cheques or the consumption premium are non-recurring, they should not be included in the calculation basis of an indemnity in lieu of notice.

The end date of the validity of the consumption cheques or the consumption premium has now been set as 31 December 2022.