Compensatory benefit

Internal redeployment

Should the internal redeployment result in a salary reduction, workers are entitled to a compensatory benefit, which represents the difference between the previous and the new remuneration.


External redeployment

When the employee on external professional redeployment takes up a new job with a lower salary than earned from the previous employer, they are entitled to a compensatory benefit, equal to the difference between those two salaries, provided:

  • they have been assigned to the new job by ADEM
  • they have been declared fit for the new job following a pre-hire examination
  • their working time is equal to at least half that is provided for by the contract in force before the initial decision to redeploy them.

Amount

The former salary is calculated on the basis of the average monthly income subject to pension insurance contributions which was received by the employee during 12 calendar months immediately preceding the redeployment decision. If the employment contract has been in effect for less than 12 months, the former salary is calculated by taking the average of the base amount subject to contributions over the completed calendar month and multiplying it by 12.

The compensatory benefit is subject to social security and tax contributions.

Duration

The compensatory benefit ends when the right to the early retirement benefit, the disability pension, the early old-age pension or the old-age pension come into effect.

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