CLA 90 bonus plan 2025… and beyond?

Key Takeaways

1. The CLA 90 bonus is a collective, result-based scheme that provides tax advantages by rewarding group achievements rather than individual performance.
2. For a reference period corresponding to calendar year 2025, companies must implement the CLA 90 bonus plan by April 30, 2025 to comply with regulations.
3. The government is reviewing the CLA 90 bonus scheme, which may lead to future changes, but companies can proceed with their current plans for 2025.
    

Background

The non-recurring result-based bonus scheme, also known as the ‘CLA 90-bonus’ or the ‘salary-bonus’, is a collective bonus scheme which is tax friendly under certain conditions and within specific limits. The bonus is based on a collective labor agreement, CLA 90, and can only be granted based on the achievement of collective goals within a predefined reference period.

In this alert, we want to highlight the key changes and mark the deadline for plans with a reference period of the calendar year 2025!
 

1. The CLA 90 Bonus

The bonus scheme under CLA 90 is a collective bonus with beneficial tax treatment. Both the targets and the resulting bonus are collective, meaning that the targets must pertain to a group effort, and the amount of the bonus is also granted to the employees collectively rather than being individually determined.

As the grant of this bonus results in a higher net yield, it is a popular alternative to a discretionary bonus.

While the bonus is subject to a solidarity employer (33%) and employee (13.07%) social security contribution, the bonus is tax exempt. Furthermore, the bonus remains fully tax deductible for the company and no vacation pay is due.

The bonus can be implemented – as long as it does not replace existing salary – in a company level CLA (if there is an active union representation active within the company), or via a an ‘accession agreement’. 
 

2. Threshold amount 2025

The bonus cannot exceed a specific, index-linked maximum amount. The maximum gross amount for 2025 is 4.164 EUR, per calendar year and per employee.

Note, that the employee pays a solidarity contribution of 13.07% and as an employer you pay a special employer contribution of 33%. As a result, the bonus will be tax-exempt up to a maximum amount of 3.622 EUR net in 2025 (3.622 EUR net: 4.164 EUR - solidarity contribution of 13.07%).
 

3. Timeframe implementation

A CLA 90 bonus plan must be implemented before one-third of the reference period has expired.  The reference period is the period during which the objectives must be achieved.

For example, for a reference period coinciding with calendar year 2025, the bonus plan must be implemented by 30 April 2025. For companies whose financial year starts in July and ends in June, the deadline for implementation of a bonus plan pertaining to the financial year would be 31 October 2025.
 

4. Future of CLA 90

The new governmental agreement emphasizes the intention to increase the appeal of cash benefits over non-cash benefits. In that context, the government has a stated goal of reviewing the CLA 90 bonus scheme and the profit premium scheme, and possibly simplifying and aligning both schemes.

There is currently no indication of what these changes might look like, and no view on the intended timing of any such changes. As such companies interested in implementing a CLA 90 bonus should feel free to proceed as planned.
 

5. Challenges and key takeaways

In practice, we notice that companies are increasingly struggling to formulate relevant objectives that meet the legal requirements of the scheme. It seems the administration is also more closely monitoring compliance with the regulatory framework in recent years.

Given that there is a deadline on the implementation, companies should:

• Review the possibility the grant a bonus under the CLA 90 instead of a regular bonus;
• Make sure to implement the bonus before 30.04.2025 if your reference period is calendar year 2025.

If you want to know more about the CLA 90 bonus and the way to implement this within your company, don’t hesitate to contact your EY contact. We can support you with the full project, including but not limited to:

• formulating new ideas for your CLA 90 objectives for 2025 and ensuring they comply with legislation;
• the communication strategy towards your employees;
• drafting the plan with the chosen objectives while considering the calculation modalities, as well as following up with the authorities for the approval of the objectives;
• …
   

Action points:

1. Companies should evaluate the potential benefits of granting a CLA 90 bonus instead of traditional bonuses due to its tax advantages.
2. Ensure the CLA 90 bonus plan is developed and implemented by the April 30, 2025 deadline to remain compliant.
3. Seek expert guidance from EY or other professionals to formulate compliant objectives and manage the approval process for the CLA 90 bonus.