Want to give your staff members an added sweetener for their hard work while also securing their future? A bonus plan is a smart choice. The premiums are tax deductible for you, and your staff members will end up with a higher net value in hand than with other bonus systems. Not to mention that maximising employee pensions has become more important than ever given the pension reforms announced in the new Belgian Federal Government's coalition agreement.
A win-win solution for you and your staff!
What is a bonus plan?
With a bonus plan, a portion of your staff members’ variable pay is allocated to a group insurance plan. It's a tax-efficient and flexible solution that your staff members can use to top up their supplementary pension. They not only get recognition for their efforts in the present but also a reward in the future. It's a great way to show your appreciation for your staff members' efforts and contribute to their long-term financial security.
What are the benefits of a bonus plan?
- Tax efficiency: your staff members will walk away with roughly 75% of their bonus in hand compared to only 30% with a traditional cash bonus
- Lower employer contributions: you'll pay only 13.3% in employer contributions instead of 25% with a traditional cash bonus
- Flexibility: you choose the plan that best fits your overall remuneration policy
- Sustainability: premiums are invested responsibly based on ESG criteria
How exactly does it work?
From the selection process to implementation, AG has you covered.
A bonus plan is flexible and can be set up for all types of bonuses. You can determine the type of premium and select the eligible employee categories. You can allocate payments differently according to age or seniority. You choose your preferred investment vehicle: Branch 21, Branch 23 or a combination of both. You can transform an existing bonus system and combine it with other bonuses or create a new pay structure.
In short, a bonus plan can be seamlessly integrated in your overall remuneration strategy.
Custom-designed bonuses
With AG, you get to choose a solution that aligns with your company culture and vision:
- An innovative solution: you get stable funding and maximum peace of mind
- A flexible solution: your staff members select their preferences and objectives themselves within the allowable options you provide
Once your bonus plan is ready, you'll experience the speed and efficiency of AG EB Online, our web-based platform designed to help you with the day-to-day management of your plan.
"Can I take out a cash advance against my bonus plan?"
The answer is a resounding yes! If you include this option, your staff members will have access to their money even before they reach retirement age. With a bonus plan, they can apply a portion of their accrued supplementary pension reserves towards buying or remodelling real estate or to pay off a mortgage loan, subject to certain conditions. This way, they can already start reaping the benefits of their hard work. An added sweetener that your staff members will surely appreciate!
Increase the impact of your bonus plan
With a bonus plan, you not only reward your staff members for their hard work, but also provide them with more cash in hand due to tax efficiencies. The ideal way to stretch their bonus to the maximum... and shine the spotlight on the efforts you make to secure their future.
With the MyAG Employee Benefits app, your staff members get anytime, anywhere access to their corporate-sponsored insurance covers. In the app, they can calculate the expected net value of the bonus paid into in their group insurance plan when they retire. It's also their go-to source for information about taking out a cash advance.
We're sure you want them to know about and make the most of these interesting opportunities. What's the best way to get the word out? By downloading the MyAG Employee Benefits app, your staff members will immediately see all the benefits and services you provide for them.
Motivate your team to download the app today!
FAQ about bonus plans
Want to find out more about how to reward exceptional performance in an exceptional way? Click here for more information about bonus plans.
Interested?
Don't delay, contact us today. We'll do our best to assist you.