Flemish target group reductions in 2023

In a previous infoflash, we already gave information on the planned measures in Flanders in 2023. In this infoflash, we clarify the implications for target group reductions.

Apprentices, young people and mentors: until 1 July 2023

In the implementing decree qualifying work-based learning bonus for companies and apprenticeship bonus for work-linked training, the following target group reductions will be abolished as of 1 July 2023:

• The target group reduction for mentoring (mentoring discount)
• The target group reduction for apprentices in a work-linked training
• The target group reduction for young people working part-time and receiving vocational secondary education.

These target group reductions are valid until the 2nd quarter of 2023. No transitional measures are provided.

As of 1 July 2023, these measures can therefore no longer be used.

Older present employees: transitional measures

The target group reduction for older working employees is again adjusted to further increase the age requirements. The target reduction for older non-working job seekers remains unchanged.

Older present employees who have already reached at least the age of 59 by 31 December 2023 will remain eligible for the G4 target group reduction (600€/quarter), until the last day of the quarter preceding the 62nd birthday.

Older present employees who have already reached at least the age of 62 by 31 December 2024 will remain eligible for the target G8 reduction (1,500€/quarter), until the last day of the quarter preceding the 63rd birthday.

SINE target group reduction: application until 1 July 2023.

The social integration economy (SINE) is a measure that provides financial support to employers who recruit job seekers who are difficult to employ. This measure breaks down into an integration benefit and a target group reduction SINE.

This measure will be abolished as of 1 July 2023, with the introduction of the "individual customisation”. As of this date, no more applications for SINE measures can be made. However, individual customisation  can be used if necessary.

Only for employees who entered the workforce no later than 30 June 2023 and remain in continuous employment will employers retain the benefits associated with the SINE measures for up to 24 months.

Target group reduction recent sustained work experience: as of 1 October 2023.

As of 1 October 2023, a new target group reduction will be introduced in Flanders for persons without recent, sustained work experience. This target group reduction replaces the recruitment incentive for long-term job seekers.

Conditions:

• Be registered with VDAB as non-working job seeker on the day before entering employment
• Be between 25 and 58 years of age (on the last day of the quarter)
• Be registered with VDAB as a non-working job seeker for at least two years[1] and create a file on “Mijn Loopbaan”.
• Salary limit of 10,000€ quarterly reference salary
• Employee works in business unit in the Flemish Region

G1 reduction (1,000€ per quarter) for first quarter of employment + 3 subsequent quarters

The regulations regarding the target group reduction in recent sustained work experience have not yet been finally approved by the Flemish Government.

Source

• Decree of 23 December 2022 on the bonus for qualifying work-based learning for companies and the bonus for work-linked training for students, Belgian Official Gazette of 31 January 2023.
• Preliminary draft Decree of the Flemish Government amending 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.
• Decree of 14 January 2022 on customisation for individual integration, Belgian Official Gazette of 11 March 2022.
• Flemish Government Decree 15 July 2022 implementing the Decree of 14 January 2022 on customisation for individual integration, Belgian Official Gazette of 19 August 2022.

[1] However, for the calculation of this 2-year period, periods of illness, accident or detention are treated equally as well as periods of interruption of registration amounting to less than 3 months. The Flemish minister of work may determine additional periods that are treated equally.