JC no. 200 – collective bargaining agreement regarding purchasing power premium concluded
22 Aug 2023
In our newsletter of 24 May 2023, we reported on the introduction of a new type of purchasing power premium – in the form of consumption vouchers – of maximum EUR 750 that can be attributed by companies that turned a high or exceptionally high profit in 2022. This one-off purchasing power premium was created in light of the zero margin for wage increase during the period 2023-2024 and aims to allow companies that achieved good results in 2022 to still award their employees something extra on top of the mandatory indexation.
The purchasing power premium’s legislative framework first laid the initiative for its practical implementation – including determining what constitutes a high and exceptionally high profit, as well as the corresponding premium amounts – with the different joint committees. Within the supplementary joint committee (JC) for white-collar workers – JC no. 200 – a collective bargaining agreement (CBA) to this effect was concluded in July 2023.
Definition of (exceptionally) high profit and corresponding premium amounts
A company that falls within the scope of application of JC no. 200 is considered to have turned a high or exceptionally high profit in 2022 if two conditions are cumulatively met:
the company’s 2022 operational profit equals at least 5% of the company’s total 2022 balance sheet and;
the ratio between the 2022 operational profit and the total 2022 balance sheet exceeds the average of the same ratio for the years 2019-2021.
If the 2022 ratio is at least 1.25 times the average of the same ratio for 2019-2021, a purchasing power premium of EUR 125 will be due; if it’s at least 1.5 times the average for 2019-2021, a premium of EUR 250 will be due and if it’s at least twice the average for 2019-2021, a premium of EUR 375 will be due.
Modalities and timing
As mentioned above, this new one-off purchasing power premium takes the form of consumption vouchers. These vouchers are exempt from social security contributions and income taxes for the employee, however, an employer social security contribution of 16.5% is due on their amount.
If – based on the CBA’s parameters – a purchasing power premium is due, it must be awarded to all employees who are employed by the company on 31 October 2023 and who have at least 1 month of seniority in the company at that point in time. Specific provisions are included for the pro rata calculation of the premium, based on the individual’s effective employment during a 1 November 2022 - 31 October 2023 reference period.
The actual consumption vouchers must in any case be attributed to the employees by 31 December 2023 at the latest.
Can you deviate from the CBA’s provisions?
If a company that falls within the scope of application of JC no. 200 meets the CBA’s parameters, it will have to award the corresponding purchasing power premium amount to its employees. However, there’s still a possibility for a company to deviate from the CBA’s provisions, either to award a purchasing power premium to its employees even though it doesn’t meet the CBA’s parameters, or to award a higher amount than is provided for in the CBA. This must of course be done within the confines of the purchasing power premium’s legislative framework and as such inter alia requires that the modalities are set out in a company-level CBA or in individual agreements, detailing the company-specific parameters for the premium.
If you have any questions with respect to awarding a purchasing power premium in JC no. 200, don’t hesitate to reach out; we’d love to hear from you!
