While this government agreement contains several concrete provisions, it is important to note that all these provisions still need to be converted into legislation. Consequently, it is not yet entirely clear when specific measures will take effect or to whom they will apply.
Labor Market
The primary objectives of this government are to raise the employment rate in Belgium to 80% by 2029, make work more rewarding, and facilitate the reintegration of individuals who have been long-term sick.
Work Must Be More Rewarding
To enhance the distinction between working and not working, the following measures are proposed:
- The difference between working and not working must be at least €500.
- Tax-free allowances will be increased, and the Special Contribution to Social Security (BBSZ) will be reduced.
- The social work bonus will be strengthened.
- For the minimum wage, gross pay must equal net pay.
- The GGMMI will be increased by €35 in 2026 and 2028, with no additional costs for employers.
- The automatic indexing and wage norm law will remain in effect, but social partners will be tasked with advising on the reform of these two laws by December 31, 2026.
- The 2001 law regarding employee participation will be modernized.
Entrepreneurship Must Be More Rewarding
To improve Belgium's competitive position, labor costs for personnel must be reduced. The following measures are proposed:
- Labor costs for low and middle wages will be reduced.
- The employer's contribution to social security will be capped for high wages, starting from the wage level of the Prime Minister, which is approximately €250,000 gross annually.
- The target group reduction for initial recruitments will be reformed.
For the first employee, the contribution reduction will remain unlimited in time and amount to €2,000 per quarter. For the second to the fifth employee, a contribution reduction of €1,000 per quarter will apply for the first three years. - The temporary tax exemption for contributions related to shift work will be replaced by a permanent measure that aims to provide more clarity and legal certainty.
- The tax exemption for contributions for scientific research (R&D) will be clarified, with adjustments made to the scope for universities, colleges, university hospitals, and research funds.
Working Hours
Working hours will undergo significant reform.
- Employers will have greater flexibility to determine working hours in collaboration with their employees, in accordance with European regulations. A new legal framework for annualization of working time will be introduced by June 30, 2025.
- The requirement that the minimum weekly working hours must be at least 1/3 of a full-time schedule will be abolished. The prohibition on work performance of less than 3 hours and on-call contracts will remain in effect.
- The prohibition on night work and the legally mandated closing day will be abolished.
- Night work in the distribution and related sectors will only commence from midnight (thus extending from 24 hours instead of 20 hours).
Overtime
- Voluntary overtime will be permitted up to 360 hours, of which 240 hours will be without surcharge, with gross pay equaling net pay (thus exempt from social and tax contributions). For the hospitality sector, this will be 450 voluntary overtime hours, of which 360 will be without mandatory overtime pay. The current arrangement in the hospitality sector will be simplified and made more flexible.
- Voluntary overtime is available for full-time employees and part-time employees who have worked part-time for at least 3 years, provided there is a temporary increase in work.
- Other overtime can be performed up to 180 hours in a tax-friendly manner.
Labor Contract
Several provisions have been established regarding labor contracts, which we will summarize for clarity.
- The probation period will be reintroduced.
- Any employee with at least 10 years of work experience may resign once and receive 6 months of unemployment benefits.
- The severance pay for new recruitments will be limited to a maximum of 52 weeks.
- The number of protection compensations will be limited.
- The starter contract will be abolished.
- Student labor (tax and social advantageous rate) will be permitted up to 650 hours per year.
- Flexi-jobs will be expanded to all sectors. The tax threshold will rise to €18,000, and the maximum hourly wage to €21. The prohibition on flexi-jobs at connected companies will be removed (for full-time employees).
- The temporary transfer of personnel to another employer will be made more flexible.
- Social partners are requested to develop proposals for the completion of the unified statute for workers and employees (guaranteed wage, annual vacation).
Extralegal Benefits
- A broader transition period for hybrid company cars is provided. The maximum deduction percentages are: until the end of 2027: 75%, in 2028: 65%, and in 2029: 57.5%. Fuel costs for hybrid company cars will remain 50% deductible until the end of 2027.
- Collective bonus systems (CAO 90) will be simplified and harmonized.
- Meal vouchers will be increased by two increments of €2 in the coming legislative term (up to €12). Eco vouchers and sports and culture vouchers will be eliminated.
- The copyrights will be extended to digital professions, such as those in the IT sector.
- The system of flexible remuneration (cafeteria plans) will be legally defined, and the gross wage exchange will be limited to a maximum of 20% of the annual gross wage.
- The existing mobility budget will be reformed into a mobility budget applicable to all.
Unemployment
The unemployment benefits will undergo comprehensive reform.
Unemployment benefits will be limited in duration to a maximum of 2 years (after 5 years of work) and a maximum of 1 year for school leavers. This limitation does not apply to individuals over 55 years old with 30 years of professional experience (from 2025) and 35 years from 2030. The benefit will be increased during the initial phase and will then decrease progressively. Additionally, those who are temporarily unemployed for more than three months must register as job seekers with the VDAB, Forem, or Actiris.
End of Career and (Supplementary) Pensions
Through a new pension reform, the government aims to encourage individuals to work longer.
- SWT (former bridge pension) will be discontinued: new entries will cease as per the government agreement. Only medical SWT and SWT in cases of restructuring or collective dismissal announced before the government agreement will remain available.
- The landing path (part-time or 4/5) will remain available from 55 years, with at least 30 career years and a minimum of 156 worked days each. This condition will gradually increase to 35 career years by 2030.
- The early retirement age will be 60 years for those who can prove 42 career years of 234 days. Other conditions will remain, but the career condition will increase to 156 days in 2027. Transitional measures will be introduced.
- A bonus-malus system will be implemented: working longer will be rewarded, while early cessation will incur penalties. From 2026, those who work beyond the retirement age and can demonstrate 35 career years with 156 days per year will receive a bonus of 2% for each additional year. This bonus will increase to 4% after 2030 and 5% after 2040.
- A contribution of 3% of the salary to the supplementary pension is targeted by 2035. The solidarity contribution on supplementary pensions exceeding €150,000 will increase from 2% to 4%.
Training and FLA
The Federal Learning Account will be abolished, and a simpler system will be explored. Short contracts (flexi-jobs, seasonal workers, students) will be excluded. The individual training right of 5 days will be made more flexible and partially collectivized, focusing on employees who need it most. Administrative burdens will be minimized, and accrued training rights will not result in wage payments. Exemptions for SMEs (<10 and <20 employees) will remain in place.
Reintegration of Long-term Sick Employees
The approach to addressing the increasing number of long-term sick individuals will be prioritized. The government has three goals: to prevent illness, to reduce the duration of illness for those affected, and to facilitate the swift reintegration of individuals who have been absent from work for an extended period. This will be achieved through the following reforms:
- Stricter sanctions for employees who do not cooperate with reintegration efforts.
- Relapse will only entitle individuals to guaranteed pay after 8 weeks of work resumption. No guaranteed pay will be provided for new full disability during partial work resumption.
- Medical force majeure will be possible after 6 months.
- Employers may initiate reintegration processes from the first day of illness with the employee's consent.
- Contributions to the Back to Work (TNW) fund will always be due upon termination of the agreement.
- Active absenteeism policies will be implemented by employers and prevention services.
- Non-SMEs will pay 30% of the RIZIV benefit during the first two months of illness after guaranteed pay for employees aged 18 to 54 years. This replaces the responsabilization contribution.
- Doctor's note for the first day of illness is limited to 2 times per year (for companies with more than 50 employees), reduced from the current allowance of 3 times.
- Introduction of the 'fit note' to indicate tasks that the sick employee is still able to perform.
- Reintegration plans through the employer will consider opportunities with other employers.
- TRIO platform: Certificate of incapacity for work will be shared after 1 month.
- Prevention advisor-occupational physician will take action after 1 month of absence.
- Employers will receive support in developing reintegration plans and will be required to assess work potential after 8 weeks of incapacity for work. Employers with more than 20 employees will face sanctions if no reintegration process is initiated within 6 months.
What Does Securex Do for You?
We will continue to monitor the implementation of the measures outlined in the government agreement. As soon as more concrete details become available, you will find updates on Lex4You. If you would like to stay informed about developments related to the government agreement, please register for our Webinar on social current affairs on February 18, 2025; or opt for a favorable subscription.