Integration of BiK’s into remuneration in 2026

The federal government’s summer agreement (July 2025) provides for a significant reform of the remuneration of employees, managers and self-employed workers: fixed benefits in kind (BiK) may represent a maximum of 20% of total remuneration from 1 January 2026.

Scope & legal consequences

• Persons concerned: all workers, as well as company directors. The latter must prove that they earn a minimum remuneration of €50,000 in order to benefit from the reduced ISoc rate; if more than 20% of their gross remuneration consists of BiK, the excess will be taxed separately.
• For employees: if their BiK exceeds 20% of their remuneration, a 7.5% tax will be applied to the excess portion.

BiKs concerned & distinction between flat-rate allowances

Only flat-rate BiK’s are covered by this ceiling. Non-flat-rate benefits continue to be treated separately (airline tickets, travel, etc.).

The scheme will distinguish between two categories:

• Directors (or equivalent workers)
• Ordinary employees

In each category, the tax authorities will check the proportion of BiK’s in relation to gross remuneration. If it exceeds 20%, the penalties provided for will apply according to status.

Typical benefits in kind & likely calculation methods

According to media sources and analyses, the following benefits in kind can be expected to be particularly closely monitored in this context:

• Company car: usual calculation via catalogue value × 6/7 × age coefficient × % CO₂. It will be necessary to check that the benefit in kind allocated remains reasonable in relation to the salary.
• Provided accommodation: the use of accommodation by a manager or employee could weigh heavily in the calculation. Furnished accommodation, furnished accommodation with charges, indexed or reduced CI must be well justified.
• Equipment, subscriptions, devices: computers, telephones, internet, etc. are classic flat-rate benefits in kind that companies regularly allocate; their cost must be assessed within the ceiling.

Impacts & practical recommendations

• Company directors: be careful not to exceed 20% BiK in your remuneration packages if you want to maintain a favourable long-term tax rate. Too high a proportion of benefits in kind could prove costly.
• Employers: review contracts and the conditions for granting BiKs, and perhaps restructure certain forms of remuneration (increase the salary portion, reduce the BiK portion) to remain below the threshold.
• Accounting preparation: it will be essential to run simulations for 2026 now, incorporate this cap into salary budgets and anticipate potential surpluses.
• Internal communication: explain to your employees what this cap means and why certain non-taxable allowances may be reduced or redistributed.

Current status & uncertainties

The measure is part of the summer agreement but has not yet been definitively legalised. The specific legislative texts are drafted, but have yet to be adopted.

Certain details remain to be clarified: how mixed BiKs will be treated, cases of executives with multiple statuses, the exact proportion of income to be used for the calculation basis, etc.

The €50,000 threshold for executives, if confirmed, could change or be indexed.