Background information

In 1 July 2004, a system of reducing workers' contributions was introduced, the aim of which was to give workers that were made redundant as a result of restructuring a financial incentive when they find work again, by guaranteeing them a higher net wage for a certain period, without increasing their gross pay. This measure, together with the restructuring target group reduction, is part of the promotion of the re-employment of workers made redundant due to restructuring.

This instrument is available to employees who have lost their previous job as a result of company bankruptcy, closure or restructuring.

Content of measure

A reduction of the personal social security contributions is foreseen for the employee who has a restructuring card and who is hired by a new employer.

This flat-rate reduction amounts to €133.33 per month for a full-time employee. It is granted in the period from when the employment started (with a valid restructuring card) until the end of the second quarter when this employment restarted. Meaning the duration of the reduction can last for a maximum of 3 quarters in total. For blue-collar workers, the amount of €133.33 is multiplied by €1.08 and for part-time workers, these amounts are prorated. This reduction in favour of the employee may only be applied insofar as the reference monthly salary of the employee does not exceed a certain wage limit:

For employees younger than 30 years, the reference monthly wage may not exceed €3,009. For employees of at least 30 years of age, the reference monthly wage may not be higher than €4,416.60. Previously (before the transfer to the regional governments) employers received social security benefits. However, all of the regions dismissed this aspect over the years.

Use of measure

A reduction in costs for the employee in question because of the reduction in social benefits they are obliged to pay.

The reduction in social benefits for employers that used to be the case is removed in the majority of the cases. It only remains to some extent in the German-speaking community.

Target groups

Workers	Businesses	Citizens
Unemployed	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Local / regional government	Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 01 June 2004: FPS Employment (www.emploi.belgique.be)
• 19 April 2022: RVA-ONEM-LFA (www.rva.be)