The Belgian government introduced the consumption voucher in order to support some sectors of industry that were hit hard by the COVID-19 crisis. Under certain conditions, the consumption voucher is exempt from the employee’s personal income taxes and social security contributions. For the employer, this voucher is deductible as professional expense as well.
A support for the recovery of the Belgian economy
The COVID-19 crisis has a severe impact on the hospitality-, culture- and sport sector as well as small businesses that had to close longer than one month. In order to support these sectors, the Belgian government introduces the consumption voucher for use in the aforementioned sectors.
General principles of Consumption Vouchers
The voucher can be granted free of social security contributions and taxes provided that the conditions below are met:
- The new voucher can be issued only once, until 31 December 2020;
- The voucher cannot be given in order to replace or convert salary, premiums or other benefits, whether or not subject to social security contributions;
- The granting of the voucher must be included in a collective labour agreement on sector or company level or for the companies without a trade union delegation, in an individual agreement with the employees;
- The maximum value of a voucher is € 10 and the employer can grant a maximum of € 300 in these vouchers;
- The voucher can never be (completely or partially) exchanged for money;
- The voucher is issued in the name of the employee;
- The voucher is valid until 7 June 2021.
More details can be found in the Royal Decree of July 17, 2020.
Not taken into account for the wage norm
Another advantage. Consumption Vouchers must not be taken into account for the 2019-2020 maximum margin of wage increase of 1,1%.
Interested to offer this to your employees?
The consumption voucher can be issued through the accredited provider Eden Red that already issue other types of vouchers (such as meal vouchers and eco vouchers).
Don’t hesitate and order now! You can directly contact Cindy Voisin, Partnership Manager at Edenred.