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Do you have employees in Belgium who are bursting with ideas and actively contribute to innovation within your company? If so, the innovation bonus is an interesting way in Belgium to reward them. Thanks to this measure, employers can grant a financially advantageous bonus to employees who come up with an innovative idea and effectively implement it within the company. This scheme has been extended until 31 December 2026.
Who is eligible to apply for an innovation bonus?
- Employers: Any company that falls under the legislation on collective labour agreements and joint committees can grant innovation bonuses.
- Employees: All employees with an employment contract are eligible, regardless of the type of contract (indefinite or fixed-term, specific assignment, work student contract, etc.).
What does this mean for salary?
The innovation bonus does not replace a salary, but is an additional reward. It is fully net: no employer or employee social security contributions are due, and no withholding tax is payable. The bonus is also tax-deductible for corporate income tax purposes.
However, certain caps apply:
- Per employee, the bonus may not exceed one month’s salary per calendar year.
- The total amount of innovation bonuses granted per year may not exceed 1% of the total annual payroll.
When does the exemption apply?
The exemption applies to innovation bonuses granted or paid during the current calendar year.
What are the conditions?
To grant an innovation bonus, the following criteria must be met:
- The employee must be employed under an employment contract;
- The bonus must be granted in connection with an innovative idea that has effectively been implemented, and which represents genuine added value for normal business activities;
- A maximum of 10 employees per firm may receive a bonus per innovation;
- A maximum of 3 employees in companies with fewer than 30 employees; and
- A maximum of 10% of the workforce in companies with more than 30 employees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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