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Performance based remuneration practices

Last updated on 1 October 2024
A manager may reward an employee who performs exceptionally well or for any other reason that justifies an additional remuneration. On the other hand, periodic increments may be deferred in the case of employees whose performance is not up to standard.

If you arrange the change via this self-service option in more than 4 weeks before the effective date, timely processing and payment are in general guaranteed. Changes you arrange less than 4 weeks before the effective date will usually be processed and paid out later.

Managers have the following options at their disposal.

One-off allowance

One-off allowances are paid in a particular month to employees. The amount is generally based on a certain percentage of the relevant employee’s current scale-based pay.

In accordance with the Collective Labour Agreement (CLA), managers can choose from the following one-off allowances:

  • Performance bonus, in accordance with CLA Article 3.12
  • Acquisition and retention allowance, in accordance with CLA Article 3.13 (referred to as a job market-related bonus in the CLA)
  • Bonus for temporary substitution, in accordance with CLA Article 3.14
  • Personal allowance, in accordance with CLA Article 3.15

To apply for (and amend and view) a one-off allowance, go to the ‘One-off allowances’ self-service option in the service portal. 

Fixed allowance

A fixed allowance is an amount paid to employees monthly for a temporary period. The amount is generally based on a certain percentage of the relevant employee’s current scale-based pay.

In accordance with the CLA, managers can choose from the following fixed allowances:

  • Performance bonus, in accordance with CLA Article 3.12
  • Acquisition and retention allowance, in accordance with CLA Article 3.13 (referred to as a job market-related bonus in the CLA)
  • Bonus for temporary substitution, in accordance with CLA Article 3.14
  • Personal allowance, in accordance with CLA Article 3.15
  • Board membership allowance

As well as the aforementioned fixed performance-based allowances, other types of fixed allowances are possible in very specific cases:

  • Irregular working hours allowance, in accordance with CLA Article 3.26
  • Unusual working hours allowance, in accordance with CLA Article 3.24
  • Reimbursement of non-taxable expenses 
  • Reimbursement of travel expenses for travelling to and from an appointment
  • Net reimbursement of telephone expenses

To apply for (and amend, view, and stop) a fixed allowance, go to the ‘Fixed allowances’ self-service option in the service portal. 

Bonus

According to CLA Article 3.19, managers have the option of awarding bonuses to employees who have performed to a level well beyond their normal position and working hours. Bonuses are gross one-off amounts paid out in a particular month.

To apply for a bonus for outstanding performance by an employee, go to the ‘Performance bonus’ self-service option in the service portal. 

Extra increment 

Managers have the option of awarding extra increments to employees who perform outstandingly. This is one step (a salary increment) in the employee’s current salary scale, while the salary incremental date changes automatically: counting from the effective date of the extra increment, the employee will automatically receive the annual salary increment 12 months later (unless the extra increment moves the employee in question to the end of their salary scale). This automatic change of the salary incremental date cannot be adjusted manually, nor by the HR Service Desk.

To apply for an extra increment, go to the ‘View and amend employment contract information’ self-service option in the service portal.

Deferment of increment

Unless an employee has reached the end of their salary scale, he or she will be awarded an annual increment (generally starting one year after their date of commencement of employment). For any employee who, in the judgement of their manager, has not fulfilled his or her job satisfactorily, it is possible to put back the date of increment, causing the annual increment increase to be temporarily deferred.

To defer an automatic increment payment (for an employee), go to the ‘Postpone date of increment’ self-service option.

Information

Questions

Please contact the HR Advisor at your faculty or service department for more information.

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