The year-end bonus and holiday pay are two elements of pay that are often confused, even though they follow very different calculation logic.

The year-end bonus: a matter of sector

Contrary to popular belief, the year-end bonus is not an automatic right for all Belgian workers. Whether it exists, and how it is calculated, depends on the joint committee your company falls under, or on a specific company agreement. It is therefore essential to check what your sector provides for before promising its payment.

Holiday pay: a national mechanism

Holiday pay, on the other hand, is a legal mechanism that applies to all employees. How it is calculated differs depending on whether the worker is a white-collar or blue-collar employee:

  • For a white-collar employee, holiday pay is generally calculated and paid by the employer itself
  • For a blue-collar worker, it is calculated and paid by a holiday fund, based on the hours declared by the employer
The amount of holiday pay depends on the previous year's hours worked: an employee who joined during the year will therefore only receive, in their first year, holiday pay proportional to their actual months worked.

Avoiding calculation errors

These two elements must be budgeted separately and anticipated in your cash flow, as they represent a significant cost concentrated in certain periods of the year. A properly prepared payslip should always clearly show how they were calculated.

This article is intended for general information purposes only and does not constitute personalised legal advice. As every situation is different, please contact our team for advice tailored to your business.