Starting in 2016, electronic ecocheques also an option
Belgian employers are permitted to give their employees 250 euros’ worth of ecocheques per year. Until the end of last year, the only option was paper ecocheques. As of 2016, employers also have the option of offering electronic ecocheques.
An ecocheque is a voucher given by the employer to the employee for the purchase of ecological products and services. The vouchers are issued by private businesses, such as Edenred and Sodexo. Payment to employees by means of ecocheques is exempt from social security contributions and taxes.
An employer may allocate 250 euros in ecocheques annually. One voucher has a maximum value of 10 euros and remains valid for a period of two years. There is a list of products that may be purchased with ecocheques.
In order to benefit from social security contribution and tax exemptions, the ecocheque must fulfil a number of conditions (for example, it must be granted by collective or individual agreements, it must state the name of the employee, etc.).
Since 1 January 2016, the issuers of ecocheques may also issue electronic vouchers, in addition to the paper versions. In order to benefit from social security contribution and tax exemptions, the following conditions must be met:
- the number of electronic ecocheques and their gross amount must be stated on the pay slip;
- before being able to use the electronic ecocheques, the employees must have been able to consult their ecocheque balances as well as see the period of validity of the ecocheques that were delivered and which have not yet been used;
- the choice of electronic vouchers is governed by collective or individual agreements;
- the electronic ecocheques may only be distributed by an authorised issuer. If this issuer loses its authorisation or goes bankrupt, the ecocheques remain valid until their expiry date;
- the use of electronic ecocheques may not be associated with any cost to the employee, except in cases of loss or theft.
The employee receives an ecocheque account. The issuer of the ecocheques manages this account and places the ecocheques to which the employee is entitled in this account.
The employee receives a chip card that he or she can use to pay for purchases via the ecocheque account. This can be the meal voucher card, for example.
When payments are made, the FIFO system is utilised. The vouchers that are due to expire first are used first.
As opposed to paper vouchers, the employee with electronic vouchers can pay the exact amount owed.
Example: An employee still has 4 ecocheques of 10 euros each on his account. He makes a 15-euro purchase. His ecocheque account will be debited 15 euros. He now has 25 euros left for the following purchase.
In the case of loss or theft of the card used for the electronic ecocheques, the employer may charge the employee a fee to cover these costs. The terms and conditions which apply are contained:
- in the employment regulations, if the allocation of the ecocheques is provided for by individual employment contract;
- in the collective labour agreement, if the allocation of the ecocheques is provided for by CLA.
Please do not hesitate to contact your payroll administrator at Pro-Pay for additional information.
