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Do we have to offer a minimum salary to our part time director?


Is there a mandatory hiring and salary for a CEO in a new B.V.? I have heard about minimum € 40 k / year but see nothing mentioned. We will only be hiring a part-time CEO for the first year. If applicable, will salary drop proportionally?

The minimum required salary of € 44,000 (in 2015) is applicable in case of a director who has at least 5% of the shares in the company. So if the CEO doesn’t have shares the minimum salary is not applicable.

If he does the salary may be reduced proportionally if he has a contract which clearly states that it concerns a part time contract. But there have been court cases in which was decided that based on the actual situation the salary could not be reduced although the director/shareholder didn't work fulltime. It really depends on the specific situation.

Besides that the amount of € 44,000 is a minimum. Also relevant is the salary which other persons earn who are in a similar situation (salary must be at least 75% of the salary these persons earn) and what other employees in the same company earn (the director/shareholder should in principle be the one with the highest salary, unless there are persons who have a unique quality and therefore earn more).
In the first year of existence of the company the tax authorities are in general more flexible with respect to the minimum salary for the director/shareholder. The same in case the company makes structural losses. But there is no guideline for that. 
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Comments (2)
Comment by SHAILENDRA KHARWAR on Thu, Oct 22nd, 2015 at 10:24 AM
If its a new company and the 1st year theres no business done , is it still mandatory to pay the director Ceo -Minimum Salary .
Comment by Arjan Enneman on Thu, Oct 22nd, 2015 at 10:53 AM
In the first year you can normally pay a lower salary. Especially if no business has been done yet. As said, this is only an issue if the director is also a shareholder.
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