Conditions, prorata, amount: everything you need to know about the end-of-year bonus

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“In practice, an end-of-year bonus has been introduced within most joint committees and companies. We can therefore consider this bonus as a generality rather than an exception”explains Alexia Buyl. We must therefore be attentive: without clear rules, no bonus. In other words, before dreaming of this extra to finance Christmas gifts, it is better to check what the contract or collective agreement says.

Amounts that vary

The terms and conditions for granting the end-of-year bonus are often a mix of seniority, presence and rules specific to each sector. Some companies opt for a 13th month, others prefer a fixed amount indexed or a percentage calculated on the annual or monthly salary. Result: two colleagues from the same company, but affiliated to different joint committees, can receive very different amounts.

Furthermore, equivalent absences, such as sick or maternity leave, are often taken into account for the calculation. But again, it all depends on what is negotiated within the sector or company.

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What if the worker has not worked all year?

Don't panic: “proration” (from the word “prorata”) comes to the rescue. When an employee joins a company during the year or works part-time, most sectors apply a simple rule: 1/12ᵉ of the bonus per month worked. This mechanism allows for equitable distribution, provided of course that it is provided for in a collective agreement.

For part-time workers, collective agreement no. 35 guarantees that the bonus is allocated in proportion to services. Thus, a part-time contract allows you to claim a bonus equivalent to 50% of that of a full-time contract. A fair recognition, which avoids any discrimination.

An extra, but not a favor

The end-of-year bonus is not just a selfless gift: it is considered compensation in its own right. This means that it is subject to both employer and personal social security contributions and professional withholding tax, at a specific rate of 16.15% for exceptional compensation. For the employer, it therefore represents a cost, but also a tool to build team loyalty. And for the employee? A welcome boost to end the year.

Change of regime for the “employment bonus”: who will benefit and for how much?

But the end-of-year bonus should not be confused with the bonus. Where the first is generally independent of the company's performance, the bonus is directly linked to the results obtained. Only, “Bonuses also constitute remuneration and are subject to the same social and tax contributions as the end-of-year bonus.specifies Alexia Buyl. But, unlike the bonus, their payment is not systematic and can be conditioned by specific objectives.