NSSO exemption for recovery of overtime arranged

NSSO exemption for recovery of overtime now resolved

SD Worx Knowledge Centre

Source

Royal Decree amending Article 19, § 2, of the Royal Decree of 28 November 1969 implementing the law of 27 June 1969 amending the decree law of 28 December 1944 on social security for workers

On 4 February, the Royal Decree (RD) governing the exemption from social security contributions for the recovery overtime hours worked by employees in 2021 and 2022 appeared. The exemption entered into force retrospectively on 1 July 2021.

Beneficial recovery hours

Employers from all sectors can again have 120 additional hours of voluntary overtime worked in 2022: the recovery hours. These are in addition to the statutory basic quota of 100 hours of voluntary overtime.

These recovery hours:

• do not entitle the employee to overtime pay; • do not entitle the employee to allocation of compensatory leave; and • do not count towards the internal limit for overtime.

The salary for the recovery hours worked is not only exempt from social security contributions, but also not subject to tax. The employer may therefore pay the salary for the hours net.

Employee agreement

As with ordinary voluntary overtime, the employee must provide advance agreement in writing to work the recovery hours. The agreement is valid for a renewable period of six months.

Tolerance

Employees have already been permitted to work recovery hours since 1 July 2021. The NSSO tolerated employers not deducting social security contributions. However, there was no legal basis for this. With this Royal Decree, that basis has finally arrived.

Consequences for the employer

In 2022, employers will once again be able to use 120 recovery hours, free from social security contributions, personal income tax and overtime pay.

Employees must agree to work recovery hours in writing in advance.

SD Worx Social/Legal News March 2022 Page 5