Remuneration for committee members

As a principle, committee members provide their services on a honorary basis. Many associations provide for a reimbursement of expenses or an attendance fee for committee members, but other forms of recognition are also possible, e.g. training courses, exemption from contributions. Other associations pay an hourly remuneration for the committee’s work or certain activities for the committee. If committee members provide their specific expertise, a remuneration may be advisable. Any remuneration must refer to a clearly defined and limited mandate (paid tasks of the committee). Attendance fees and compensation in excess of the expense allowance are always subject to tax (salary statement) and may potentially be subject to social insurance. The Zewo quality seal is awarded only to associations whose committee members provide their services to a considerable extent on an honorary basis.

Executive committee compensation and expenses / Model expense regulation (vitamin B)

Question

Within our committee, there are very different opinions as to how expenses are to be reimbursed and whether committee members should receive compensation. What is the right approach?

Answer

In many associations, expense regulations and committee compensation are an ongoing topic and are often even a permanent source of conflict that is never made an issue. From a legal standpoint, there are no exact regulations on this issue and associations handle the topic of compensation very differently. Here are a couple of points of reference:

It should be a matter of course that compensation is provided for expenses that are actually incurred.
The expense regulations and the compensation provided must be adjusted in line with the association's financial situation. This expenditure should be included in the budget.
Generous lump sums and compensation payments may exhibit the character of payments that are subject to tax and other duties.
For associations that are exempted from tax and those that bear the ZEWO quality seal, more stringent requirements apply.

It is highly recommended to discuss the compensation of expenses in detail within the committee and to record the regulations decided upon in writing. See in this regard the work aid "Expenses, expense regulations, compensation".

Remuneration for committee members

Expense reimbursement?

Question

Answer