ARTICLE · 10 OCTOBER 2023

Purchasing Power Premium - Tax Administration Circular

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In view of the inflation experienced in 2022 and the lack of margin for wage increases, the government has taken steps to allow companies that had high profits in 2022...

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Claeys & Engels Law Firm

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In view of the inflation experienced in 2022 and the lack of margin for wage increases, the government has taken steps to allow companies that had high profits in 2022 and/or good results during the crisis to grant their employees a purchasing power premium in 2023.

In this context, the Tax Administration has published a tax circular (2023/C/82) on 26September 2023 commenting on the rules and conditions for granting the premium set out in the royal decree of 23April 2023 and the Law of 24 May 2023.

What is the amount?

As a reminder, the granting of this premium must in principle be organised at sectoral level by a Collective Labour Agreement (CLA). Alternatively, the granting of this premium may also be provided for by a CLA at company level or, in the absence of a trade union delegation, by an individual agreement.

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