Flemish target group reduction young employees as from 2020

Medium-skilled young people recruited after 31 December 2019 no longer qualify for the Flemish target group reduction for young employees.

New as from 1 January 2020

This Flemish target group reduction was introduced in 2016 as a support measure for low- and medium-skilled young people.

For recruitments as from 1 January 2020 only low-skilled young people (no secondary education diploma) will be eligible.

Medium-skilled young people (maximum secondary education diploma) recruited until 31 December 2019 fall in a transitional arrangement and lose nothing: their reduction will continue after 31 December 2019 until the planned 8 quarters are exhausted.

Which young people?

The young person must satisfy the following conditions:

1. The employment is linked to a business unit in the Flemish Region
2. The employee is younger than 25 at the end of the recruitment quarter
3. Employment is under an ordinary employment contract
4. The employee is low-skilled i.e. has no secondary education diploma (schooling condition for recruitments as from 1 January 2020)
5. The level of education was attested in good time in the electronic file of the VDAB (Flemish Employment Agency)
6. The reference quarterly wage is lower than €7,500.00 (recruitment quarter + 3 quarters) resp. €8,100.00 (following quarters)

Reduction for low-skilled young people

The reduction is not limited to a lump sum. The employer is fully exempt from the basic contribution and the wage moderation contribution (for the profit sector, that is 25.00% on the gross wage) during the recruitment quarter and the following 7 quarters.

Source: draft of the (Flemish) Decree containing provisions for the 2020 budget