Retention allowance

Profit automatically calculates the retention allowance. However, there are differences between primary education and secondary education.

Retention allowance in primary education

An employee that is at the highest step of the wage scale on 1 August, can be granted the retention allowance. In primary education, the retention allowance is not an entitlement.

If the employee leaves employment before 1 August, the employee does not get a retention allowance. For this reason, in primary education there is no reservation for the retention allowance, as is the case for the holiday allowance and the end of year bonus.

Profit automatically calculates the retention allowance using the 161.172.011 'Bindingstoelage' wage component.

Note:

Each wage component has a comment in which the operation of the wage component is explained. Always take a look at this explanation on the Comment tab in the properties of the wage component in the CLA. If you do not have the wage component available, first activate it.

To not apply the retention allowance for an employee:

1. Go to:HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Wage component.
4. Click on: New.
5. Select the 'Bindingstoelage' wage component.
6. Click on: Finish.
   1. Open the properties of the 'Berekenen Ja/Nee' parameter.
   2. Click on: New.
   3. Enter 1 August of the current year in Start date.
   4. Select Apply to all employments for Application.

      You do not want to calculate the wage component for all employments.

   5. Do not select the Apply check box. This ensures that Profit does not calculate the wage component for the employee.
   6. Click on: Finish.
   7. Click on: OK.
7. Click on: OK.

Retention allowance in secondary education

Profit automatically calculates the retention allowance if the employee is at the highest step of the wage scale. In secondary education, two variants of the retention allowance exist:

• Retention allowance in the first year

  This applies to teachers in their first year and always applies to ‘Onderwijs ondersteunend personeel (OOP)’.

  Profit calculates the retention allowance using the 161.192.011 'Bindingstoelage A rekencomponent' wage component. The payment is made in August. If the employee leaves employment, no payment is made.

• Retention allowance after the first year

  This only applies to teachers from their second year onward.

  Profit calculates the retention allowance using the 161.192.011 'Bindingstoelage B rekencomponent' wage component. The payment is made in August or when the employee leaves employment. If the employee leaves employment before 1 August, Profit pays out the accrued retention allowance.

Note:

Each wage component has a comment in which the operation of the wage component is explained. Always take a look at this explanation on the Comment tab in the properties of the wage component in the CLA. If you do not have the wage component available, first activate it.

Profit only makes the payment if the employee has received a retention allowance in the previous year too. If the employee receives a retention allowance for the first time and the employee leaves employment before 1 August, the employee is not entitled to settlement of the retention allowance.

To not apply the retention allowance for an employee:

1. Go to:HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Wage component.
4. Click on: New.
5. Select the 'Bindingstoelage' wage component.
6. Click on: Finish.
   1. Open the properties of the 'Berekenen Ja/Nee' parameter.
   2. Click on: New.
   3. Enter 1 August of the current year in Start date.
   4. Select Apply to all employments for Application.

      You do not want to calculate the wage component for all employments.

   5. Do not select the Apply check box. This ensures that Profit does not calculate the wage component for the employee.
   6. Click on: Finish.
   7. Click on: OK.
7. Click on: OK.