Belgium’s New Cost-Free Medical Benefit Option
Asinta’s Belgian Partner, Van Dessel, recently published a paper outlining Belgium’s new and unique cost-free medical benefit option that helps employees cover outpatient medical expenses.
Research shows that 82% of Belgian employees currently have hospitalization insurance, while only 5% have outpatient coverage. Many medical expenses that are still privately borne are outpatient costs, averaging €570 per year per Belgian. However, new measures allow for a healthcare cafeteria plan option to be financial through the 13th-month salary (a standard Belgian benefit), giving employers a way to offer a cost-free benefit that makes a world of difference for their employees.
Benefits of the New Cafeteria Plan Addition
The new addition to the cafeteria plan allows employees to allocate a portion of their 13th-month salary towards various healthcare-related expenses. This change provides more flexibility and potential tax advantages for employees. The key benefits include coverage for:
- Dental care
- Optical care
- Other outpatient costs, such as medical consultations and treatments
Impact on Employee Compensation
It’s important to note that this new addition does not change the fundamental structure of the 13th-month salary in Belgium. The 13th-month pay remains a mandatory benefit for most employees, calculated as one-twelfth of the basic annual salary. However, this new option gives employees more control over how they utilize this additional compensation.
Administrative Considerations
Employers may need to adjust their payroll and benefits administration systems to accommodate these new options.