Payment for unused time off in lieu: How does it work?
The Purchasing Power Act passed by Parliament in August 2022 changed the rules governing the use of RTT days. Employees can now request to be paid for any RTT days they have not taken. Under certain conditions, they can receive payment for these RTT days, which were previously lost if not taken.
The government allows payment for unused RTT days. Employees have a choice: they can take RTT days off or have these days monetized. This measure applies to RTT days between January 1, 2022, and December 31, 2025.
In order to receive this payment, you must first be on a daily rate plan and meet certain conditions:
A written agreement between the employee and the employer is required and must be renewed annually.
The employee must not exceed the maximum number of days worked in a year. This is determined by the Collective Agreement or, failing that, by the Labor Code (235 days).
The calculation for buying back RTT days is fairly simple:
Number of days in the year (365 days in 2022) – Saturdays and Sundays (105 in 2022) – 25 days of paid leave = 235 working days in 2022.
Seven public holidays must be deducted this year. This means that 228 working days can be worked in 2022.
The annual package is still 218 working days. It is therefore possible to buy back 10 days of RTT in 2022 (228 – 218 = 10).
To calculate RTTs in a simplified way, quarksUp offers an effective digital solution. This digital tool allows you to track employees' vacation and RTT days in real time.
Payment for these unused RTT days is exempt from income tax, up to a limit of €7,500 per year.
The 3 key points to remember:
