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31 January 202314 minute read

Complementary unemployment benefits

Increased employer social security contributions as of 2023

The basic rule under Belgian social security law is that normal social security contributions are calculated on the basis of the remuneration, as defined in article 2 of the Act of 12 April 1965 on the protection of the employee’s remuneration. The article defines remuneration broadly by including all payments and benefits in kind the worker is entitled to from the employer in the framework of the employment contract. It also excludes certain elements, notably payments by the employer as a complement to the benefits under the various branches of the social security system.

Normal social security contributions are not due on an indemnity paid to a former worker on top of the statutory unemployment benefits paid by the Belgian state. However, complementary social security allowances paid by the former employer are subject to special social security contributions. These were reformed by the Programme Act of 27 December 2006 (I) by increasing this special employer social security contribution depending on the age of the person. The system of unemployment benefits with company allowance (traditionally called “bridge pension”) and the payment of complementary unemployment benefits by the former employer outside the framework of this system, often allowed people to stop working before reaching the legal retirement age. If the former employer accepted a high amount of the allowance, the combination of this allowance (paid by the former employer) and the unemployment benefits paid by the Belgian state sometimes meant that there was no real financial incentive to look for a new job.

To increase the employment rate and reduce the number of people who stop working long before reaching retirement age, the government adopted on 26 December 2022 a Royal Decree further increasing the percentages of this special employer social security contribution. The employer contribution due is increased by 4.7%, both with effect on 1 January 2023 and on 1 January 2024.

For private sector companies that are not classified as a company in restructuring or a company in difficulties by the Minister of Work, the following employer social security contributions are due on allowances paid in the system of unemployment with company allowance for the period after 31 October 2016:

Age at the moment of the first payment

Percentage 2022

Percentage 2023

Percentage 2024

Below 55

142.5%

149.20%

156.21%

55 up to 57 (included)

75%

78.53%

82.22%

58 or 59

75%

78.53%

82.22%

60 or 61

37.5%

39.26%

41.11%

As of 62

31.25%

32.72%

34.26%

 

If the former employer agreed to the payment of an allowance on top of the unemployment benefits outside the framework of bridge pension, the following percentages apply:

Age at the moment of the first payment

Percentage 2022

Percentage 2023

Percentage 2024

Below 52

150%

157.05%

164.43%

Below 55

142.5%

149.20%

156.21%

55 up to 57 (included)

75%

78.53%

82.22%

58 or 59

75%

78.53%

82.22%

60 or 61

58.24%

60.98%

63.85%

As of 62

48.53%

50.81%

53.20%

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