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The Flemish government's September declaration announced that the reduction for "present" older employees would gradually be limited to the age group of 61 and over. Now the details are known, following the draft decree.
The Flemish target group reduction for older employees consists of two parts: a “present" employee reduction for all older employees and a hiring reduction for older jobseekers.
The age for the "present" employee reduction will be gradually increased over the period 2022-2024 and will be limited to the age group 61+ in 2024, but transitional measures will be introduced.
For both reductions, the employee must meet the following conditions:
For the (higher) hiring reduction, the older employee must be younger than the statutory retirement age at the time of hiring and be a non-working jobseeker.
The reduction for newly hired aged 58+ who have not yet reached the statutory retirement age and who are registered with the VDAB (Flemish employment service) is not limited to a fixed amount. The employer will be fully exempt from the basic contribution and the salary moderation contribution (in total, 25% on the gross salary) during the hiring quarter and the following 7 quarters.
Nothing will change in this respect on 1 January 2022: the age limit for hiring will remain 58 years.
This reduction should promote the retention of older employees and is a quarterly fixed amount of €600 or €1,500 for full-time work during a full quarter. These amounts are respectively linked to an age limit. In the period 2022 - 2024 that age limit will be gradually increased.
Age at the end of application quarter
Quarterly fixed amount for the reduction
aged under 58
no entitlement
aged 58 to 59
€600
aged 60 and over
€1,500
In 2022, 2023 and 2024 the age limit, linked to the fixed amount of €600 and €1,500 respectively, will be increased by one year after each year
aged under 59
aged 59 to 60
aged 61 and over
aged under 60
aged 60 to 61
aged 62 and over
aged under 61
61
The new decree provides for flexible transitional measures.
Persons who on 31 December 2021:
The transitional measures ensure that no employee falls back on a lower reduction than could be expected under the "old" arrangements until 2021, even if the hiring takes place in 2022 or later. In practice, this has a significant impact, here are some examples:
1.
Date of birth: 15 June 1964, hiring: 1 April 2022
The employee is aged 57 on 31 December 2021, the transitional measures apply:
2.
Date of birth: 15 November 1961, hiring: 1 January 2022
The employee is aged 60 on 31 December 2021, the transitional measures apply. Therefore the reduction starts immediately at €1,500 from the 1st quarter of 2022 onwards
3.
Date of birth: 15 July 1966, hiring: 1 April 2022
The employee is aged 55 on 31 December 2021, the transitional measures do not apply:
Source: Draft Decree of the Flemish Government amending art. 6 of the Royal Decree of 16 May 2003 implementing Chapter 7 of Title IV of the Programme Act of 24 December 2002 (I), concerning the harmonisation and simplification of social security contribution reduction schemes and art. 2 of the Decree of the Flemish Government of 17 February 2017 on awarding hiring incentives for long-term jobseekers, adopted in the Flemish Council of Ministers of 12 November 2021. Subject to final approval and publication.
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