Flexi-jobs – social security and taxes

The favourable status of flexi-jobs is clear in particular from their social and tax treatment: full exemption for the worker and an advantageous special contribution for the employer.

Social security contributions

The following allowances are excluded from the notion of remuneration in social security:

• the base flexi-wage of € 9.18/hour (on 1 January 2018)
• all ‘gross’ extra allowances such as premiums, supplements, etc.
• the flexi-holiday pay of 7.67%.

The sum of the flexi-wage and flexi-holiday pay (as mentioned above) shall be subject to:

• worker: no deduction
• employer: a special employer contribution of 25%, calculated on 100% of the flexi-wage and flexi-holiday pay. This contribution replaces the ordinary base and fringe contributions.

All ‘non-gross’ extra allowances for ordinary workers will not be subject to the special contribution of 25% and receive the normal treatment of the benefit (e.g. commuting contribution, private use of a company car, …).

Flexi-jobs and contribution reductions

There is no entitlement to any reduction of the special contribution of 25%: no structural reduction, no target group or any other reduction.

If a worker combines a flexi-job and an ordinary employment contract with the same employer(authorized if less than 4/5), the time worked and the allowances for the flexi-job are not taken into account for the calculation of the reductions granted for the employment under the employment contract.

For the ‘first hirings’ target group reduction, flexi-jobs are considered as hirings. They thus give rise to the first, second, third, fourth, fifth or sixth reduction, without being able to benefit from the reduction themselves.

Social rights of flexi-job workers

In theory, the time worked in a flexi-job is taken into account to build up social security rights. In practice, this is of little relevance, because those involved are either retired or carry out a main activity that already guarantees that social rights are built up.

Taxes

The sum of the flexi-wage and flexi-holiday pay, that is subject to the special employer contribution of 25%, is eligible for a favourable tax treatment. It is not liable to personal income tax or withholding tax.

For the employer, the flexi-wage, the flexi-holiday pay and the special employer contribution of 25% are deductible as professional expenses.

On a tax level, the ‘non-gross’ extra allowances for ordinary workers also receive the normal treatment of the benefit.

Example

2 days employment of each 7 hours in a flexi-job. Suppose that the employment entitles to a supplement of 10% by virtue of a collective labour agreement.

wage for 14 hours worked                              € 128.52 (= € 9.18 x 14)

supplement                                                     €   12.85 (= € 128.52 x 10%)

flexi-holiday pay                                             €   10.84 (= € 141.37 x 7.67%)

total                                                                 € 152.21

net worker                                                     € 152.21

wage costs employer                                               

wage                                                               € 152.21

special contribution 25%                                €   38.05 (= €152.21 x 25%)   

total wage costs employer                             € 190.26

Source: Act of 16 November 2015 establishing various social provisions, as amended by the Programme Act of 25 December 2017 (Belgian Official Gazette of 29 December 2017).

Author: Els Poelman

16/02/2018