The government recently adopted the first measure within the tax shift framework, more precisely the abolition of social security contributions for a first recruitment.
This is a reinforcement of the existing scheme of reductions for first recruitments, instaured in 2004. The existing reductions designed for the first five recruitments, will now be applied as of the second engagement.
As of 1st January 2016, the employer will no longer be liable for social security contributions on the first job created, and this throughout the entire duration of the occupation.
1.
Who is affected by this new measure?
The « first employers », and more specifically:
the employer who never occupied staff and was never liable for social security contributions;
the employer who did no longer occupy personnel during the last four quarters preceding the recruitment of a worker;
the employer who never hired an apprentice, domestic workers, workers under the part time compulsory school attendance regime, an apprentice in the framework of entrepreneurial training or free lance workers in the agricultural, horticulture or hospitality sector.
The employer belonging to one of these 3 categories will be entitled to a social security contributions waiver, and this throughout the entire duration of the occupation of the first employee.
For certain categories of employees (blue collar workers), the employer’s social security contribution will continue to exist, like the annual holiday payment contribution for workers (6% of the salary). For the majority of the employees, the new measure will apply.
2.
For the second up until the sixth contract of employment, the employer will be entitled to the already existing flat fee reductions of the employer’s social security contributions, more specifically:
for the second contract of employment: a reduction of maximum 1.550,00 EUR/quarter during 5 quarters;
for the third up until the sixth engagement included: a reduction of maximum 1.050,00 EUR/quarter during 5 quarters.
As of the fifth quarter, the reductions in employer’s social security contributions are reduced to 450,00 EUR/quarter for the 4 following quarters.
The employer will be entitled to the reductions of the employer’s social security contribution as of the second till the sixth recruitment and this during 20 quarters (= 5years).
3.
The Royal Decree containing these measures enters into force as of 1 January 2016.
The new reductions applicable to the first employments will apply to all workers which were hired throughout 2015.
Thus, any employer who hired a worker between 1st January 2015 and 31 December 2015 may, if he fits the conditions, claim the reductions specified above and this as of the last quarter of 2015.
This measure will apply as of the publication of the Royal Decree.
The employer who was already entitled to the benefits of the reduction of social security contributions for workers employed before 1st January 2015, may continue to benefit from these measures after December 31, 2015.
The national social security office will publish any time soon its administrative guidelines in order to clarify the conditions for the application of the new measures.
