Reward update

In today’s war for talent, offering an attractive and flexible pay package remains essential. As of 1 January 2026, a new sector agreement introduces greater flexibility in how employees within Joint Committee 226 can use their end‑of‑year premium. This builds on earlier updates, such as the January 2024 increase of the bicycle allowance to EUR 0.35 per kilometer and the simplified methods for calculating the Total Cost of Ownership (TCO).

Since 2024, employers have been able to conclude a company-level collective bargaining agreement (CBA) allowing employees to exchange up to 50% of their end‑of‑year premium for a bicycle or additional leave days, benefits that support wellbeing and work-life balance. With the latest sector agreement, this flexibility has been expanded even further.

As from 2026, employers can now decide to convert up to 60% of the end-of-year premium. In addition, the available options now extend beyond just bicycles or extra holidays; employers can also offer other benefits such as insurance products and multimedia devices.

In 2023, sector agreements within Joint Committees 209, 111, and 226 allowed employees, provided a company level CBA was signed, to convert up to half of their end of year premium into benefits such as a bicycle or extra leave days.

The Royal Decree of September 2023 clarified how the Federal Mobility Budget should be calculated, introducing two possible TCO formulas. While organizations may still use reference cars, they now have two options:

1. Actual cost calculation

• Relies on a detailed list of cost components included in the decree.
• Costs not listed, or not relevant to the organization, cannot be included.
• The budget is averaged over a four year reference period to smooth out fluctuations.

2. Lump-sum formula

Consists of a fixed component and a variable component:

• The fixed component differs depending on whether the car is purchased or leased.
• The variable component is based on:
  • 6 000 private kilometers
  • plus commuting distance (round trip) for 200 workdays
  • multiplied by a consumption cost per kilometer set at 30 percent of the flat rate kilometer allowance in effect at the time of calculation

At KPMG, we have a dedicated Reward team with extensive experience in this area, covering social security, tax, and labor law perspectives. Feel free to contact us for more information about a legal compliance check of your current policies, or the implementation of a mobility budget or a Flexible Reward Plan within your organization.