Warrants have been firmly at #1 for years when it comes to the most interesting ways of compensation in Belgium. With warrants, you can smartly use your end-of-year premiums and bonuses to outsmart Father State. No need to worry about which shares to choose—your employer has already taken care of that
What’s in a name? 🤔
With warrants, you're briefly entering the stock market with your bonus or end-of-year premium. These types of financial benefits bring out your inner Warren Buffett. You can compare these warrants to a ticket that allows you to buy shares of a listed company at the value locked in at the time the warrants are issued.
Buckel up! 🎢
You hold onto these warrants for a (typically) short period. Most often, warrants are sold back on the stock exchange the day after they're granted. This means there's only a very limited market risk. Warrants are only subject to market fluctuations for about twenty hours. An employee who handles this smartly can earn up to 35% more net income.
Win-win for employers ànd employees 👀
For employers, the advantages are:
- warrants are tax-deductible business expenses
- no employer contributions are due (under certain conditions)
- minimal workload when choosing an integrated warrant provider with your cafeteria plan platform (e.g., Payflip and Optiniti)
For employees, the main advantage lies in the 13.07% social security exemption when selling warrants. Note that employees do need to pay (exceptional) withholding tax upon sale. Also, employees cannot spend more than 20% of their annual total gross salary mass on warrants.
Extra: employees typically don't need to open a securities account to receive and resell warrants
Payflip tip 💡
Warrants can be a great addition to your salary package, but it's important to understand the ride before you get in. At Payflip, we're happy to help you understand this financial rollercoaster and make the most of it!
Ready to take your salary package to new heights? Step in and enjoy the ride! 🚀
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