Walloon Region: reduction of social security contributions for older workers changes on 1 July 2023

The Walloon government has decided to change the target group reduction of employer social security contributions for the employment of older workers from 1 July 2023.

Depending on his age, the worker may be required to register as a jobseeker with the Forem the day before his hiring.

Who can generate the entitlement to the reduction of social security contributions?

The conditions for accessing the target group reduction will differ according to the worker's age:

From 55 to 59 years of age

The worker must:

• belong to category 1 of the structural reduction;
• be employed in or depend on an establishment unit in the French-speaking part of the Walloon Region;
• be between 55 and 59 years of age on the last day of the quarter in which he is hired by the employer;
• earn a reference quarterly salary of less than 16,662.56€;
• be registered as an unemployed jobseeker at the Forem on the day before his employment.

The information flow relating to the condition of registration as a jobseeker will be through ECARO.

From 60 years of age up to the last day of the quarter in which the worker has reached the statutory pension age

The worker must:

• belong to category 1 of the structural reduction;
• be employed in or depend on an establishment unit in the French-speaking part of the Walloon Region;
• be at least 60 years of age on the last day of the quarter;
• earn a reference quarterly salary of less than 16,662.56€.

What is the amount of the reduction of social security contributions?

The amount of the reduction depends on the worker’s age.

These amounts apply for a full-time worker having worked the full reference period.

As is currently the case, the target group reduction will be allocated only if the worker has actually worked over the entire quarter, with the exception of the cases of suspension referred to by the law of 3 July 1978 and the cases of exemption from work granted by the employer during the notice period.

What about the reductions in force on 1 July 2023?

The target group reduction for older workers applied before 1 July 2023 will continue to apply as long as the worker is continuously employed by the employer.

Source: Decree of 21 December 2022 containing the general expenditure budget of the Walloon Region for the financial year 2023, Belgian Official Journal 08.03.2023.