A bonus for 25 years of service?

April is traditionally, at Quintet, when the bonus is paid — a voluntary, discretionary amount the employer grants an employee to recognise exceptional performance, an outstanding result, a commitment beyond what is expected, and so on.

April is, however, also often a moment of confusion for some people who discover on their payslip both a bonus AND a “25 years of service” premium.

So the question is: is there, in addition to the bonus, a separate seniority premium? The answer is clearly: no!

In fact, if you receive a bonus, it is — in full or in part — taxed differently if you are celebrating your 25th year with the company (specifically, up to €2,500).

In concrete terms:

– a €5,000 bonus: seniority (25-year) tax treatment applies to the first €2,500, the rest is taxed normally.

– a €2,500 bonus: seniority (25-year) tax treatment applies to the entire €2,500.

– a €0 bonus: unfortunately you do not benefit from this seniority-linked tax advantage, since it cannot be applied to a bonus you did not receive.

Still not entirely clear? Don't hesitate to contact me!

Laurent