Bonus plan
Pay part or all of your employees' variable remuneration into group insurance: enjoy tax benefits and a compelling return on investment.
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A bonus plan is a tax-efficient solution for both you and your staff members. It's the ideal alternative to a straight cash bonus payment. Find out more about the other advantages.
Bonus plan: stand out at appraisal time
What do you need to know?
Favourable tax treatment
Allocating (a portion of) a bonus to a group insurance plan is a more tax-efficient solution than a cash bonus, both for you as an employer and your staff members.
Flexibility
Invest in branch 21 and earn a guaranteed return, or in branch 23 with higher upside potential.
Immediate benefit
Your staff members have the option to take out a cash advance against their supplementary pension benefits to build, renovate or purchase real estate.
All benefits in one handy app
With MyAG Employee Benefits, your staff members can access their benefits anytime and anywhere, via their computer or app. Plus they can also make use of services to boost their mental resilience (only via the app).
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Bonus plan: a win-win solution for you and your staff
As an employer, you want to reward your staff for a job well done. A year-end or cash bonus is, of course, an option, but you are well aware that such bonuses are heavily taxed and a big chunk of your generous reward will go to the State. With a bonus plan, the amount will be paid into a group insurance policy. This way, both you and your staff members will be entitled to tax benefits.
You design a Lifecycle plan for your staff members.
What makes a bonus plan so tax-efficient?
With a traditional cash bonus, your staff members often end up with just 30% of the gross reward amount in hand. Not only is this unfortunate for your employees, it also dilutes the efforts you put in as an employer. All the more reason for you to consider a bonus plan instead, with tax benefits for both you and your staff members.
Tax benefits for your staff members....
With a bonus plan, a portion of your staff members’ variable pay is allocated to a group insurance plan. As premiums paid into this type of plan are taxed at a much lower rate than traditional cash bonus payments, your staff members will walk away with 73-74% of their bonus in hand, significantly more than with a cash bonus. And when invested in a branch 21 or branch 23 fund, this amount could be even higher.
...and also for you
This tax-efficient way of rewarding your staff gives your company a competitive edge in the war for talent. At the same time, as an employer, you also benefit from favourable tax treatment. With a cash bonus, you pay 25% in employer contributions. If you opt for a bonus plan solution instead, the percentage drops to just 13.3% On total company-wide bonus payments, this can easily add up to hundreds and thousands of euros per year.
Experience the flexibility of a bonus plan
A custom-designed solution that’s right for your company
A bonus plan is an integral part of a flexible remuneration policy that you can tailor to fit your company culture and vision:
All types of performance bonuses, year-end bonuses and gratuities can be fully or partially integrated in a bonus plan. A bonus plan can transform an existing bonus systemor serve to create a new pay structure. A bonus plan canbe set up for specific categories of employees. Payments into a bonus plancan be allocateddifferently according to age andseniority (e.g. a small share of the premium for younger staff members vs a bigger share forolderemployees).
Incorporate the Lifecycle concept in your cafeteria plan.
Invest with or without a guaranteed return
Premiums paid into a bonus plan are invested for the long-term. Depending on your risk profile, you can select an investment vehicle with or without a guaranteed return:
If you invest the premiums in branch 21, you get the security of aguaranteed return , plus annual (variable) profit sharing may also be awarded.
If you then invest the profit sharing in abranch 23 fund with no guaranteed return, you can earnexcess ROI based on your own self-defined risk appetite. This return will vary depending on the economic conditions and other factors.
You also have the option to invest 100% of the premiums in branch 23.
Our sales managers will be happy to advise you and help you make the best possible decision for your company.
Your staff members can take out a cash advance towards purchasing or remodelling real estate.
With a bonus plan, your staff members immediately start reaping the benefits you provide
Another option that comes with a bonus plan is that it allows your staff members to take out a cash advance against their supplementary pension benefits. They can apply a portion of their accrued pension reserves towards buying or remodelling real estate or to pay off a mortgage loan, before they reach retirement age.
Your staff members can find all the details about the option to take out a cash advance against their group insurance benefits on MyAG Employee Benefits.
Want to find out more?
AG Employee Benefits & Health Care has capitalised on the digital revolution to provide you with additional value. Our unique digital tools for you (AG EB Online) and your employees (MyAG Employee Benefits) will simplify your paperwork and shine the spotlight on the efforts you make for your staff members.
MyAG Employee Benefits
It's a secure, user-friendly app and platform for plan participants to find out everything they want to know about their corporate-sponsored group insurance. In the app, your employees can access their covers, anytime and anywhere. All of the features in MyAG Employee Benefits are also available via your computer, but the services are only accessible via the MyAG Employee Benefits app.
Information on sustainability
Depending on the selected funds, the plan incorporates ESG factors that allow it to make a positive impact on the environment and/or society and to limit negative impacts on the environment and/or society, through an appropriate selection of investments. Information on these ESG factors is available here. To find out more about AG's approach to sustainable and responsible investing, go to ag.be/investing/sustainability.
You will also find more information in the Sustainability Fact Sheet for each of the available funds in this product as well as the corresponding annual report .
For customers looking to double down on their commitment to ESG, AG also offers branch 21 and branch 23products that take an even more advanced approach.
Intrigued? Want to find out more?
Ask your questions about our Bonus Plan or request a non-binding offer via the contact button. You can also check the AG EB Invest dashboard for a clear and detailed overview of each of our funds.