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How to reduce your social security contributions in Flanders

Flanders, Belgium’s northern region in the heart of Europe, offers access to various reductions on social security contributions, helping you optimize salary costs and lower your overall labor costs. Below are the most prominent ones.

For first recruitments

Companies that set up a first base in Flanders can benefit from a social security reduction scheme related to first recruits. In a nutshell, they receive:

  • a lifelong exemption from social security contributions (SSCs) for the first employee hired;
  • further SSC reductions for the next five employees hired (for a period of over three years).

Overview: incentive on employers’ social security contributions (SSC) in Flanders

 

Gross salary

Employer’s SSC 
Month 1-15

Employer’s SSC 

Month 16-27

Employer’s SSC 
Month 28-39

Employer’s SSC
Month 40-…

1st employee

€ 3,500

€ 0 
(lifelong exemption)

€ 0
(lifelong exemption)

€ 0 
(lifelong exemption)

€ 0 
(lifelong exemption)

2nd employee

€ 3,500

€ 358.33
(10.2%)

€ 525
(15%)

€ 725
(20.7%)

€ 875
(25%)

3rd employee

€ 3,500

€ 525
(15%)

€ 525
(15%)

€ 725
(20.7%)

€ 875
(25%)

4th employee

€ 3,500

€ 525
(15%)

€ 525
(15%)

€ 725
(20.7%)

€ 875
(25%)

5th employee

€ 3,500

€ 525
(15%)

€ 525
(15%)

€ 725
(20.7%)

€ 875
(25%)

6th employee

€ 3,500

€ 525
(15%)

€ 525
(15%)

€ 725
(20.7%)

€ 875
(25%)

For young employees

Does your company operate a base in Flanders, and are you hiring someone under the age of 25? In that case, the social security contributions you need to pay for this employee will be reduced for a period of two years. During the first eight quarters of employment, you’ll receive a benefit of:

  • EUR 1,150 per quarter for low-skilled workers;
  • EUR 1,000 per quarter for medium-skilled workers.

However, conditions in terms of maximum wage apply. The young employee concerned may not earn more than:

  • EUR 7,500 per quarter during his/her first year of employment;
  • EUR 8,100 per quarter during the second year.

For older employees

To make hiring seasoned workers more attractive, Flanders has introduced a specific reduction scheme related to social security contributions. Consequently, your Flanders-based business can receive the following benefits depending on the age of your recruit:

  • for workers between the ages of 55 and 59 – up to EUR 1,150 per quarter during the first quarter of employment and the following 7 quarters;
  • for workers between the ages of 60 and 65 – a fixed sum of EUR 1.150 per quarter during the first quarter of employment and the following 7 quarters.

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