Companies are found to be making insufficient use of the nonrecurring result-tied bonus plan system (NRRB plan), in spite of the fiscal and parafiscal benefits it provides.
Under the normal bonus system, any employer wishing to award an employee a net bonus of 500 EUR would very likely see the associated costs triple the actual bonus amount (withholding taxes, employee and employer social security contributions). Within the framework of a NRRB plan, only a special social security contribution of 33% is due on the bonus amount (in other words the total cost is only 665EUR for the same net amount of 500 EUR).
One of the reasons for the limited use of this type of bonus plan is the complexity of the system’s introduction. The National Labor Council wishes to address this issue and simplified the formalities in new CBA 90bis. The main simplifications are as follows:
* The company must use a standard template that is introduced by CBA 90bis (no distinction anymore between the act of adhesion and the bonus plan).
* If the formalities are not complied with, the employer will have the possibility to make amendments (within a period of one month after receiving notice).
The new rules are applicable from 1 April 2011.
