What reductions will disappear from 1 July 2024?
From 1 July, the NSSO rebates, known as target group reductions, will be abolished for botholder and low-skilled younger workers . For older workers, both discounts for hiring and retaining older workers will be abolished.
You, as an employer based in Flanders, therefore have every interest in recruiting employees belonging to the target group before 1 July 2024.
The NSSO discount for hiring older unemployed jobseekers
The measure in a nutshell
Are you a private sector employer recruiting a non-working jobseeker of 58 years or older ? Then you are currently entitled to a full exemption from the NSSO (basic) employer contributions for eight quarters.
This employee's quarterly salary must be no more than EUR 13,945 to be entitled to the discount.
After this period, if the conditions are met, you as an employer can benefit from the measures for incumbent older employees.
For a detailed discussion, consult our theme articles (Dutch/French only) on this subject.
Transitional measure
If, as an employer, you already enjoyed this reduction before 1 July 2024, you will keep them for the anticipated eight quarters. For employees starting from 1 July 2024, you can no longer submit new applications.
The NSSO reduction for older “incumbent ”employees
The measure in a nutshell
Are you an employer in the private sector and do you employ an employee aged 61 years or older? Then you are currently entitled to a RSZ discount of 600 euros per quarter for your employees between 61 and 62 years of age. For your employees aged 62 and over, you are entitled to a rebate of 1,500 euros per quarter if your employees are employed at least 80%.
The quarterly salary of this employee may not exceed 13,945 euros to be entitled to a discount.
This discount is maintained until the anticipated retirement age.
For a detailed discussion, please our topic file on this subject.
Transitional measure
If you were able to take advantage of this measure before 1 July 2024, you will continue to enjoy the reduction until the scheduled retirement age and no later than 30 June 2028. However, from 1 July 2024, no new entitlements will be opened.
The existing reduction of 600 euros per quarter for incumbent workers aged between 61 and 62, however, will be permanently abolished from 1 July 2024. And that without transitional measures.
Recruiting “younger” job-seeking workers
This measure in a nutshell
Are you a private sector employer hiring a low-skilled non-working jobseeker younger than 25 ? Then for eight quarters you are entitled to a full exemption from the NSSO (basic) employer contributions.
To be considered a low-skilled worker, the worker must not have obtained a sixth-grade secondary school diploma. Moreover, the younger employee must no longer be in full-time compulsory education at the time of commencement.
The quarterly salary of this employee may not exceed EUR 7,500 in the quarter of recruitment and the three subsequent quarters. In the four subsequent quarters, the quarterly wage may not exceed 8,100 euros.
For a detailed discussion, Four theme articles (Dutch/French only) on this issue.
Transitional measure
If, as an employer, you already enjoyed this discount before 1 July 2014, you will keep it for the foreseen period. However, no new applications will be possible from 1 July 2024.
Are there any alternative NSSO rebates provided from 1 July 2024?
Yes, there are and the scope will also be extended. From 1 July 2024, the scope of the already existing RSZ discount for people without recent, sustained work experience will be extended.
The minimum and maximum age to be entitled to this NSSO discount will indeed be deleted. Thus, low-skilled younger and older workers can also be entitled to the discount. Of course as long as they meet all other conditions of application.
The measure in a nutshell
Are you a private sector employer hiring a non-working jobseeker? And had been registered with the VDAB for two years on the day before taking up employment. Then you are entitled during four quarters to a NSSO rebate of 1,000 euros per quarter.
This employee's quarterly wage may not exceed €10,000 in full-time employment.
In addition, this employee must currently be between 25 and 58 years old the day before employment. These age conditions, however, will be abolished from July 1, 2024. Thus, this NSSO discount can partially compensate for the abolition of the other discounts.
The discount granted through this measure is lower. Moreover, the entry conditions are stricter. As an employer, you therefore have every interest in recruiting employees, who are eligible for the current older and younger workers' scheme, no later than 30 June 2024. This way you can still make maximum use of the more advantageous discounts.
For a detailed discussion, consult our theme articles (Dutch/French only) on this topic.
What does Securex do for you?
If you still have questions about these NSSO rebates, contact your Securex Legal Advisor at myHR@securex.be.
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