Do I have the right to a year-end bonus?
18-11-2024A Little "Extra" Before the Holidays? Absolutely. Bring on that Year-End Bonus or 13th Month!
Although a year-end bonus is not a legal obligation, most working Belgians are entitled to it. How does this work exactly, and what should you keep in mind? We'll clarify it below.
What is a Year-End Bonus?
A year-end bonus is extra pay that you receive at the end of the year. The amount varies depending on several factors. Usually, it amounts to approximately one extra month’s salary, which is why many people refer to it as "the 13th month." Year-end bonuses are paid as salaries, meaning taxes and social security contributions apply.
How is the Year-End Bonus Calculated?
For many, the year-end bonus is a nice extra, but how is it calculated exactly? Typically, it equates to one extra gross monthly salary. If you haven’t worked the entire year, the bonus is calculated pro rata. For example, if you worked for 7 months, you would receive 7/12 of your monthly salary. In some sectors, you must have worked a certain period (seniority) to be entitled to it. And don’t forget: just like your regular salary, social contributions and taxes are deducted, so the net amount will be somewhat lower. The exact calculation depends on your sector and the collective labor agreement (CLA).
Who is Entitled to a Year-End Bonus??
This depends on the sector you work in; your employer might be required to pay you a year-end bonus. If your sector doesn't provide for a 13th month, this doesn’t automatically mean you won’t get a bonus. The CLA or your company’s work regulations might still mandate a year-end bonus. Some employers voluntarily choose to give their staff a 13th month.
Year-End Bonus for Administrative Professionals
As an Administrative Professionals, you generally have the right to a year-end bonus, often regulated through the CAO (Collective Labor Agreement) of your sector or company. Typically, this is a full month’s salary if you meet the seniority requirements. If you haven’t been employed for a full year, you will receive a portion of the bonus, calculated based on the number of days you’ve worked.
Year-End Bonus for (physical) Workers
For (physical) workers, the year-end bonus depends on the sector, which can vary significantly. In many sectors, the bonus is stipulated in a CLA, and you often get a full gross monthly salary. However, similar to Administrative Professionals, if you haven’t worked the entire year, the bonus will be calculated pro rata. Workers generally need less seniority to qualify for the year-end bonus, though this can vary by sector.
Year-End Bonus for Temporary Workers
Do you qualify for a year-end bonus if you work through a temp agency? Yes, you do. However, the rules are different from those for permanent employees. As a temp worker, you must have worked at least 65 days in a 5-day system (or 78 days in a 6-day system) between July 1 of the previous year and June 30 of the current year. The bonus is calculated pro rata based on the number of days worked as a temp.
When Is the Year-End Bonus Paid??
You typically receive your year-end bonus in December, around the same time as your salary for that month. Perfect for covering Christmas gifts or ski vacations!
Year-End Bonus After Contract Termination
Getting dismissed or resigning yourself makes a difference regarding your year-end bonus or 13th month. If you get dismissed, your year-end bonus must be legally paid if there is a CAO or agreement providing for a year-end bonus, even if nothing explicitly mentions dismissal.
What About Your Year-End Bonus if You Get Dismissed??
Being dismissed or resigning yourself? It certainly makes a difference when it comes to your year-end bonus or 13th month pay. If you're dismissed, your year-end bonus must legally be paid if there is a collective labor agreement (CAO) or contract that includes provisions for a year-end bonus, even if nothing explicitly mentions dismissal.
What About Your Year-End Bonus if You Resign??
If you decide to resign, this is usually the least favorable scenario. It’s not guaranteed that you will still be entitled to a year-end bonus. Everything depends on the sector CAO, company CAO, or your work contract. In some cases, you are entitled to a pro rata bonus based on the number of months worked. In other cases, you might need to have a certain amount of seniority. But often, you lose the right to your year-end bonus upon resignation. It’s important to be well-informed.
Year-End Bonus During Sickness
What happens to your year-end bonus during sickness? A year-end bonus is generally calculated based on your actual performance. Yet, some non-working periods are often also considered for calculating the bonus. This is usually explicitly mentioned in the CLA where agreements are stated. Sickness periods with guaranteed pay, maternity leave, and temporary unemployment are usually equated and therefore count towards the calculation of your year-end bonus.
Tip! Want to check what the CLA of the joint committee you work for says? You can do this. Through the FOD WASO website, you can find all sectoral CLAs. Enter your joint committee (this can be found on your pay slip) and enter the term ‘year-end bonus’ at the bottom.
Year-End Bonus for New Employees
Whether you are entitled to a year-end bonus if you are new to the job depends on the sector you work in and the agreements in the CLA or your work contract. Often, a seniority requirement applies, requiring you to be employed for a minimum number of months, such as 6 months or a full calendar year, before you are entitled to the full bonus. In some cases, however, you can receive a pro rata bonus, meaning you receive a part of the year-end bonus based on the number of months you have worked. It is important to consult the CLA or work contract for the specific rules applicable in your case.
Questions About Your Year-End Bonus as a Temp Worker?