Social and fiscal work bonus from 1 April 2024

Author: Anne Ghysels and Isabelle Caluwaerts (Legal Expert)
Read time: 3min
Publication date: 04/04/2024 - 13:17
Latest update: 04/04/2024 - 13:43

The work bonus for low-wage workers will be increased from 1 April 2024. 

Already in June 2021, the social partners had decided on an increase in the guaranteed minimum monthly income of €37.50 gross/month in April 2024, with a reinforcement of this increase for very low-wage workers.

To this end, the fiscal work bonus is being strengthened in a targeted way. This implies a change in the rules for calculating the social work bonus.

Below we will discuss the changes to the social work bonus (reduction in personal social security contributions) and the fiscal work bonus (reduction in withholding tax).

Social work bonus

The social work bonus is now calculated in two stages: part A for low wages and part B for very low wages.

Part A

Amount of the monthly wage Amount of the reduction part A Non-manual workers Amount of the reduction part A Manual workers
S ≤ € 2,669.96 115.91 125.18
€ 2,669.96 < S ≤ € 3,144.45 115.91 - (0.2443 x (S - € 2,669.96)) 125.18 - (0.2638 x (S - € 2,669.96))
S > € 3,144.45 0 0

Part B

Amount of the monthly wage Amount of the reduction part B Non-manual workers Amount of the reduction part B Manual workers
S ≤ € 2,090.78 156.30 168.80
€ 2,090.78 < S ≤ € 2,669.96 156.30 - (0.2699 x (S - € 2,090.78)) 168.80 - (0.2914 x (S - € 2,090.78))
S > € 2,669.96 0 0

The total amount of the reduction in personal social security contributions granted as part of the work bonus is the sum of parts A and B.

Example:

A non-manual workers works full-time. He receives a gross wage of € 2,000 (= reference monthly wage). His fiscal situation is that of a single person with no family dependents. 

The amount of the work bonus applied to his personal social security contributions for April 2024 is € 272.21. Part A = € 115.91 and part B = € 156.30.

With some exceptions, the amount of the work bonus reduction cannot be higher than the amount of the due personal NSSO contributions. Those amount to €261.40 (see below). The amount of part B is reduced to €145.49 (=€261,40 - €115,91).

Fiscal  work bonus

In terms of withholding tax, the fiscal work bonus is a reduction in the form of a percentage of the social work bonus amount. 

From 1 April 2024, the percentage of the reduction will be increased for very low wages (part B of the social bonus).

Thus, from 1 April 2024, the reduction in withholding tax is equal to:

- 33.14 % of the amount of part A of the work bonus actually granted (in application of article 2, § 1/1, of the law of 20 December 1999 aimed at granting a work bonus to salaried workers with low wages and other reductions in personal social security contributions);

- 52.54 % of the amount of part B of the work bonus actually granted (in application of article 2, § 1/2, of the aforementioned law of 20 December 1999). 

 

Example: 

So, if we continue with the example given above: 

Before 01.04.2024 From 01.04.2024
Gross monthly wage € 2,000 Gross monthly wage € 2,000
Personal NSSO contributions (including work bonus)  - € 0 (= € 261.40 - € 267.42) Personal NSSO contributions (including work bonus)  - € 0 (= € 261.40 - € 272.21)
Taxable   = 2,000 Taxable   = € 2,000
Withholding tax before reduction  - € 203.35 Withholding tax before reduction  - € 203.35
Reduction in withholding tax + € 88.62 (€ 267.42 X 33,14%) Reduction in withholding tax  + € 114.85 ((€ 115.91 x 33.14%) + (€ 145.49 X 52.54%))
Special social security contribution (SSC)  - € 2.30 Special social security contribution (SSC)  - € 2.30
Net wage  € 1,882.97 Net wage  € 1,909.20

Sources:

  • Program Law of 22 December 2023, Belgian Official Gazette 29.12.2023;
  • Royal Decree of 5 March 2024 modifying the Royal Decree of 17 January 2000 implementing article 2 of the law of 20 December 1999 aimed at granting a work bonus to salaried workers with low wages and other reductions in personal social security contributions; Belgian Official Gazette 18.03.2024;
  • Royal Decree of 11 March 2024 introducing changes to the withholding tax, Belgian Official Gazette 19.03.2024.

Authors: Isabelle Caluwaerts and Anne Ghysels

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