Target group reduction recent sustained work experience (Flanders)

As of 1 October 2023, a new target group reduction will be introduced in Flanders for persons without recent, sustained work experience.

Conditions

To be entitled to this target group reduction, some conditions must be met:

• Registration with VDAB as non-working job-seeker on the day before entry into employment
• Be between 25 and 58 years old on the last day of the quarter of entry into employment
• Be registered with VDAB as a non-working job seeker for at least two years[1] and create a file on “Mijn Loopbaan”.
• Salary limit: 10,000€ quarterly reference salary[2]
• Employee works in a business unit in the Flemish Region

Reduction

The reduction in employer social security contributions is a reduction G1 (1,000€ per quarter) for the quarter of entry into employment and the 3 subsequent quarters.

The amount of the target reduction differs if:

• the employee works less than 80% of normal full-time employment in a given quarter. In that event, the reduction will be adjusted according to the part-time employment.
• the reduction is higher than the employer contribution. The reduction is then reduced to the amount of the employer contribution payable.

What if you rehire an employee?

If the employee is rehired by you within the 4 quarters, the two employment periods will be considered one employment period. The period between employment contracts does not extend the period during which the target group reduction is awarded.

Source

• https://www.vlaanderen.be/doelgroepvermindering-voor-personen-zonder-recente-duurzame-werkervaring
• Decree of 3 March 2023 on the target group reduction for persons without recent, sustained work experience, Belgian Official Gazette 22.03.2023.
• Decree of the Flemish Government amending the Royal Decree of 16 May 2003 implementing Chapter 7 of Title IV of the Programme Act of 24 December 2002 (I), concerning the harmonisation and simplification of social security contribution reduction schemes, yet to be published in the Belgian Official Gazette.

[1] However, for the calculation of this 2-year period, periods of illness, accident or detention are treated equally as well as periods of interruption of registration amounting to less than 3 months. The Flemish minister of work may determine additional periods that are treated equally.

[2] If the salary limit was exceeded in one or more quarters, resulting in no entitlement to the target group reduction, those quarters are also taken into account for the maximum duration of 4 quarters.