I productivity bonuses and the sums disbursed by way of participation in corporate profits they will enjoy one 10% tax relief by ceiling of 2 thousand euros gross, which rises to 2.500 € for companies that involve workers equally in the organization of work. The bonus applies – unless workers expressly renounce it – to bonuses awarded in 2016. The rule, introduced by the latest Stability Law, was implemented with a decree of the Ministry of Labor dated 25 March published in the Official Gazette on 14 May.
However, there are some requirements that must be met. The new provisions only apply for the private sector and those who can benefit from it are the employees who have had the year preceding that in which the bonus is received earned up to 50 thousand euros (gross of the sums subject to the substitute tax of 10% in the same year).
Another condition for benefiting from the preferential taxation is that the sums are disbursed in execution of decentralized collective agreements (territorial or corporate), which must be filed electronically (together with the declaration of conformity of the same with the provisions of the provision) at the competent territorial directorate of Labour. The submission must take place within 30 days of signing: those signed in 2015 and 2016 before the date of publication of the decree can be filed within the 15 June. In determining the criteria by which to determine the increase in productivity, the contracts must include objective and measurable indicators.
Productivity bonuses can also be availed through vouchers or corporate welfare services (meal vouchers, social security contributions, scholarships for family members and more): in these cases, the taxation to be paid by the employee is not only facilitated, but completely reset, since these are benefits that do not contribute to the formation of employee income. Paper or electronic vouchers must be personal and cannot be used by anyone other than the holder. These innovations were also introduced with this year's Stability law (which modified some provisions of article 51 of the Tuir) and became operational with the publication of the ministerial decree.
There are various types of increases in productivity, profitability, quality, efficiency and innovation for which companies can recognize productivity bonuses in 2016: increase in production, savings in production factors, improvement in the quality of products and processes, also through the reorganization of non-overtime working hours or the use of smart working.
