The NSSO has confirmed in its Instructions for Employers that the target group reduction for the 1st employee has been extended beyond 31 December 2020.
We announced this in our Infoflash of 7 October 2020. The new Government had announced its wish to extend this further reduction for the hiring of the 1st employee, which legally ended on 31 December 2020. The measure has been extended with the application of the same procedures:
- the 1st employee hired before 1 January 2021 will continue to benefit from the 1st employee reduction as it currently exists;
- the 1st employee hired after 31 December 2020 may also entitle you to this reduction owing to the extension of the measure.
As a reminder, the 1st employee reduction is a target group reduction in employer social security contributions. It is equivalent to the balance of basic social security contributions due after any deduction for the social Maribel scheme and after application of the structural reduction. It is applied for an unlimited period, i.e. throughout the duration of the employment of this 1st employee.
The Royal Decree has not yet been published in the Belgian Official Gazette.