New in 2019: a higher flemish target group reduction for low-skilled young employees

Author: Els Poelman
Date:

Since a few years, the Flemish Region has its own target group reduction for young employees. For low-skilled young employees the reduction will be enhanced as from 2019.

WHICH YOUNG EMPLOYEES?

The conditions with regard to the employee do not change - broadly speaking these are:

  1. the employment takes place in an establishment unit in the Flemish Region
  2. the employee is aged under 25 at the end of the recruitment quarter
  3. the employment occurs under an ordinary employment contract
  4. the employee is low-skilled (no secondary school diploma) or moderately-skilled (secondary school diploma at most)
  5. the level of education was certified in due time in the electronic file of the VDAB (Flemish Employment Agency)
  6. the quarterly reference wage is lower than €7,500.00 (recruitment quarter + 3 quarters) or €8,100.00 (following quarters)

REDUCTION FOR LOW-SKILLED YOUNG EMPLOYEES FROM 2019

For low-skilled young employees the reduction is no longer limited to a lump sum. The employer is fully exempted from the basic contribution and the wage moderation contribution (25.00% on the gross wage for the profit sector).

education

basic amount per quarter

number of quarters

until 31.12.2018

as from 01.01.2019

low-skilled

€1,150.00

full exemption basic contribution + wage moderation (25.00% in the profit sector)

recruitment quarter + 7 quarters

moderately-skilled

€1,000.00

€1,000.00 (does not change)

There are no transitional arrangements - the full exemption is applied irrespective of the recruitment date. The remaining quarters associated to the recruitment of a low-skilled young worker before 1 January 2019 open the right to the full exemption as well.

Source: Decree of the Flemish Government implementing various provisions of the Decree of 4 March 2016 on the Flemish target group policy, approved by the Flemish Government on 26 October 2018 - not yet published.