Opt for a sustainable remuneration solution - AG Employee Benefits
Bonus plan, a sustainable remuneration solution

Published on 12/05/2023


Stand out with a sustainable salary package


Want to keep your staff members motivated and attract new talent in a tight labour market? With an attractive salary package that's adaptive over time, you'll have a competitive edge over other organisations.

​Give your staff members the gift of a generous salary and benefits package. Ideally one that grows along with the loyalty and performance of your top talent. Mission impossible? It actually isn't. And the good news is that it doesn't have to be a financial drain on your company. Quite the opposite, in fact.

Opt for a sustainable, tax-efficient remuneration solution

A cash bonus is a short-lived benefit: taxes eat up roughly two-thirds of what you give, and what's left gets spent in a flash. This last phenomenon also applies to warrants, as your staff members sell them almost immediately after receiving them. No wonder so many companies are clamouring for a solution that's both attractive and flexible, such as a bonus plan.

"Last year, a client of ours was looking for an alternative to paying out bonuses via warrants, as they realised this wasn't a sustainable option. A bonus plan, on the other hand, fits the bill perfectly: it offers their staff members a very interesting way to build up their supplementary pension!"

Sven Desmytter, Head of Sales at AG Employee Benefits & Health Care

With a bonus plan, you pay some or all of your staff member's variable remuneration into a group insurance plan. Compared to a cash bonus, this option is:

  • ​tax-efficient: your staff members end up with nearly 75% of the reward amount in hand
  • sustainable: the money will be invested wisely, based on ESG criteria, and offer sustainable growth
  • inexpensive: you only pay 13.3% in employer contributions instead of the usual 25%

In short, a financially attractive solution for both you and your staff members.

Did you pay out a year-end or cash bonus to thank your staff members for their contribution and engagement? Unfortunately, they walk away with very little of the net reward amount in hand. Not to mention that cash disappears very quickly and is just as easily forgotten!

Flexible by design

When you opt for a bonus plan, you set up a sustainable and tax-efficient remuneration policy that you can tailor to fit your company culture and vision:

  • applicable to all types of bonuses
  • for specific categories of staff members
  • adjustable based on age, seniority, etc.

And that's not all! Premiums paid into a bonus plan are invested for the long-term, with or without a guaranteed return, or a combination of both.

  • If you invest the premiums in Branch 21, you get the security of a guaranteed return, plus annual profit sharing may be also be awarded.
  • If you invest (some of) the profit sharing in our Branch 23 funds, you can earn excess ROI based on your own self-defined risk appetite.

And for your staff members? It can give them an immediate boost in the right direction.

With a bonus plan, you give your staff members the option to take out a cash advance against their supplementary pension reserves to purchase or renovate a home or to pay off a mortgage loan. A little-known advantage for those with homeowner dreams.

Tip: Quick, easy and convenient
Our digital tools AG EB Online and My Global Benefits will simplify your paperwork and shine the spotlight on the efforts you make for your staff members.

Which option to choose?

Already had the foresight to include group insurance in your salary package? Then keep in mind that AG has some attractive solutions in that area. We'll help you make the switch to the option that best meets the specific needs of your company:

  • Maximum peace of mind with our innovative, hybrid solution that does all the work for you - automatically, effortlessly, and with no impact on your budget.

  • Maximum control with our balanced solution that lets you set the amount and the return for your staff members yourself. Have a buffer that exceeds your expectations? Then you can use this "surplus" whenever you want, or apply it towards a premium payment.

  • Maximum flexibility with our adaptive solution (French​ or Dutch) ​that lets your staff members pick their risk covers as well as the funds they want to invest the premiums and any awarded profit sharing in.

Interested? Need advice?

Your AG advisor will work with you to determine the best solution for you and your company. ​

Make an appointment