Brussels-Capital Region: start of the regionalisation of employment aid

In the framework of the 6th state reform and the powers conferred to it, the government of the Brussels-Capital Region has decided to change the landscape of measures promoting employment starting with the NSSO target group reduction 'Older workers'.

Since 2014, the Brussels-Capital Region is competent for all reductions which were transferred to the Regions, being:

• Young workers
• Older workers
• Long-term job seekers (Activa, PTP, Sine)
• Workers who have fallen victim to restructuring
• Subsidised contract workers
• Tutors
• Domestic staff
• Artists
• Baby minders.

The Brussels employment policy wishes to focus on the target groups, notably the young workers, the older workers, the long-term unemployed and the low-skilled workers.

The first changes made by the Brussels-Capital Region (BCR) concern the target group reduction for the employment of older workers. The other reductions currently remain unchanged and continue to apply as they exist at the moment.

The changes to the target group reduction 'Older workers' will be announced before 1 October 2016. These changes have not yet been published in the Belgian Official Gazette.

Employers concerned

These changes apply to the employers having an establishment unit on the territory of the Brussels-Capital Region who employ one or several older worker(s).

The employer must belong to category 1 of the structural reduction (no change at that level).

Workers concerned

The new Brussels target group reduction will be granted provided that the worker fulfills 4 conditions:

• be at least 55 years old on the last day of the quarter (instead of currently 54 years old);
• be no older than 64 year on the last day of the quarter (currently no higher age limit);
• earn a quarterly reference wage that is less than € 12,000 (instead of currently € 13,669.09);
• be employed in an establishment unit in the BCR.

Amount of the reduction

The BCR does not change the principle of the benefit: it still regards a reduction of employer social security contributions.

Below you will find an overview of the changes presented in a comparative table:

The modalities of application for the measure have not been changed by the BCR and will continue to apply as they exist at the moment (rules for calculating the reduction for part-time workers, rules for combining reductions ...).

Transitional measures

The BCR does not provide for any transitional measure. This means that the federal measure as it is currently being applied will simply be discontinued on 30 September 2016 and will be replaced on 1 October 2016 by the Brussels measure for your workers who are employed at an establishment unit in the BCR.

This will not have a significant impact, except for the worker you currently employ and who:

• either currently is 54 years old and not 55 years old at the end of Q4/2016

Example: you currently employ a worker who turned 54 years old on 1 August 2016. If the wage limit is observed (€ 13,669.09/quarter), you will be entitled to a reduction of € 400 for Q3/2016.

Since he is not 55 years old at the end of Q4/2016, you will not be entitled to the Brussels reduction 'Older workers'.

You will only be entitled to this reduction as from Q3/2017 since he will be 55 years old on 1 August 2017. So he will be 55 years old on the last day of that quarter. However, his quarterly reference wage may not exceed € 12,000.

• either be 65 years or older: as from 1 October 2016, you will no longer be entitled to the target group reduction 'Older workers'.

Source: preliminary draft decree of the government of the Brussels-Capital Region amending the royal decree of 16 May 2003 in implementation of Chapter 7 of Title IV of the Programme Act of 24 December 2002 (I), to harmonize and simplify the schemes for reductions of social security contributions.

[1] For a full-time worker having worked the full reference period.

Author: Anne Ghysels

23/08/2016