Our first newsletter of 2023 is full of hot topics relating to payroll administration. You will find out more on, among others, the new care leave, the tightening of the time credit system and the end of the simplification measures regarding temporary unemployment.
For some of these topics, employers will have to amend the company's work regulations (see below). For other new social rules for which work regulations may need to be adapted, please refer to our news item in this respect.
Should you have any questions on the topics below, do not hesitate to contact your local BDO advisor or Kim Van den Bergh. Enjoy reading!
In this newsletter:
1. The new care leave
2. Exemption from medical certificate in case of incapacity for work
3. Formalities for temporary economic unemployment
4. Extension of validity of meal vouchers, consumption vouchers and eco vouchers
5. 20 days of paternity leave
6. Reform of the time credit system for caring for a child
7. Increased home working allowance
8. Mileage reimbursement professional travel
9. Mandatory bicycle allowance from May 2023
10. Discount of social security contributions
1. The new care leave
By transposing the European Directive on work-life balance for parents and family carers, a new leave has been introduced with effect from 10 November 2022: care leave.
An employee can take leave for a maximum of five days per calendar year, consecutive or not, to care for a family member or relative. For this, the attending physician must be of the opinion that, for a serious medical reason, there is a need for 'substantial' help or support. The duration of this leave is counted against the leave for compelling reasons (which in itself is in principle 10 days per calendar year). The employee taking this care leave is protected from dismissal during the leave.
The leave is basically unpaid. An NEO benefit is also not provided at this time. We are waiting for the legislative initiative in this respect.
2. Exemption from medical certificate in case of incapacity for work
Employees are required by law to notify their employer immediately if they are unfit for work. However, since 28 November 2022, they no longer have to submit a medical certificate for the first day of their incapacity for work, up to three times per calendar year. Employers have to pay special attention to the content of their work regulations to comply with this new regulation.
You can read more about it in this article.
3. Formalities for temporary economic unemployment
Employers invoking from 1 January 2023 temporary economic unemployment must again provide their affected employees (white-collar and/or blue-collar workers) with a Form C3.2A. The validation book is also back and the shortened application and notification periods have been reset.
Find out more about it in this article.
4. Extension of validity of meal vouchers, consumption vouchers and eco vouchers
Since 1 December 2022, employees can ask the issuers of their expired meal vouchers, consumption vouchers and eco vouchers to reactivate these vouchers on a one-off basis. This can be done up to three months after the expiry date. After reactivation, the voucher is valid for another three months. Such a request is free for the first time. For subsequent applications, the cost can be a maximum of €5 (per application).
The employee who wants to do so makes the request directly to the issuer of the vouchers. Thus, there is no intervention by the employer.
5. 20 days of paternity leave
From 1 January 2023, the father or co-parent is entitled to 20 days of birth leave (previously: 15 days). This must be taken in full days. For the first three days of birth leave, the employee receives his/her normal salary. From the fourth day, he/she receives an allowance from the health insurance fund. Only one parent can enjoy this birth leave for the same child.
6. Reform of the time credit system for caring for a child
From 1 January 2023, time credit on a full time basis for caring for a child must start before the child's fifth instead of the child's eighth birthday (if you want to receive an allowance). For time credit on a part-time basis, the age of eight is maintained.
Allowances for time credit with this motive will last a maximum of 48 months instead of 51 months. This also applies to leave already started before 1 January 2023 that had not yet lasted 30 months by that date.
The seniority condition for entitlement to benefits will also change, but only from 1 January 2024. Employees will then have to be bound by an employment contract for 36 months prior to the application. For 2022 and 2023 applications, the condition remains 24 months.
7. Increased home working allowance
Employers may grant a monthly home office allowance to their employees who structurally and regularly spend a substantial part of their working time working from home. This desk or office allowance is not subject to tax or NSSO contributions. As a result of the index adjustment, its amount was increased to €148.73 per month from 1 January 2023.
8. Mileage reimbursement professional travel
The maximum kilometre allowance for professional travel is €0.4259 per kilometre from 1 January 2023 to 31 March 2023.
9. Mandatory bicycle allowance from May 2023
From 1 May 2023, there will be a mandatory bicycle allowance for employees who regularly travel between their home and place of work by bicycle. For the year 2023, the allowance will be €0.27 per kilometre. The allocation of the allowance will be capped at a maximum distance of 20 kilometres per single journey.
As an employer, you may not grant more than one allowance for the same distance travelled at the same time. However, you can, for example, combine a bicycle allowance and an allowance for a train pass when it comes to two different distances of the same commute.
10. Discount of social security contributions
All companies, both profit and non-profit, receive a temporary discount of 7.07% calculated on the 'basic net employer social contribution' for the first and second quarters of 2023. This is a consequence of the government’s budget agreement. Your dedicated Payroll consultant will automatically do the necessary in this respect.
Subscribe to receive the latest BDO News and Insights
Please fill out the following form to access the download.