Chapter 9 Social Security Contributions - Employees and Employers

The Belgian social security system is the result of several evolutions that have occurred during the past 150 years. In the current system, traces of each of the past periods remain.
In the organisation of the Belgian social security system, a main distinction should be made among three systems: salaried persons, self-employed persons (treated in Chapter 11) and civil servants. In fact, social insurance contributions are different for wage earners on the public and private labour market. Also, within the private sector, social insurance contributions differ for blue- and white-collar workers.

9.1 Private labour market

The Belgian social security scheme for salaried persons is dictated by law, so it is impossible to deviate from it with special agreements, which would be null and void.
When paying the salary, employers should deduct the contributions due by the employees (personal contributions). Then employers add the contributions that they are due (the employer’s contribution) and they have to pay the total amount of employer’s and employee’s contributions to the National Office for Social Security (ONSS-RSZ)22, acting as a collecting institution for social security contributions. In the general scheme for salaried workers, the financial resources of the main branches23 are managed as a whole within the ONSS. After reduction of the ONSS administrative costs, reimbursement of borrowing costs and various special allocations determined by law, these resources are distributed among the branches concerned on the basis of their cash requirements to be financed each month.

9.1.1 Employees (before reductions)

In total, social insurance contributions for employees amount to 13.07% of gross earnings24, which depend on whether the employee is a blue- or a white-collar worker. In fact, blue-collar workers do not pay social insurance contributions on their ordinary holiday pay (corresponding to 8% of their yearly wage). Thus, for blue-collar workers, gross remuneration is increased to 108%, with the additional 8% representing the simple amount granted for four weeks holiday as a replacement for the regular remuneration25. Social insurance contributions are paid on total gross earnings without ceiling and before income tax reductions. The tax base includes any monetary income (and a limited number of fringe benefits) granted by the employer to the employee as a remuneration for the labour supplied.

9.1.2 Employers (before reductions)

Social security contributions for employers are calculated on the basis of the gross wage26 paid by the employer and depend on the size of the firm. The basic percentage for the calculation of the employer contributions used to correspond to the sum of the applicable percentages for the different components/branches27 of the social insurance system for wage earners (24.92%). However, following the 6th State Reform this direct relationship between the employer contribution and the different components of the social insurance system has been severed to create a so-called “globalized” basic percentage. In 2015, this globalized percentage was equal to the previous sum total of the different components, but as of 1 April 2016 this percentage was lowered to 22.65% as part of the first phase of a reform of the employer contribution scheme (so-called “tax shift”) aimed at reducing the general rate of the employer contribution to 25% by 2018 (Table 9.1).

Table 9.1: Contribution rates for the employers
Contibution rates Pre-reform 2016 2018 2020
Base rate 0.249 0.226 0.199 0.199
Contribution for wage moderation 0.071 0.070 0.051 0.043
Additional contribution for wage moderation for white collars 0.004 0.004 0.000 0.000
Financial (or general) rate 0.324 0.300 0.250 0.242

The reform contains a reduction of the base rate to 22.65% in 2016 and a further reduction to 19.88%28 in January 2018. In addition to the basic employer’s contribution and the contribution for wage moderation, employers are also liable for a series of supplementary contributions, some of which are related to the size of the firm, i.e. the number of employees (see Section 9.1.3). Finally, an additional 10.27% on 108% of the annual earnings of the previous year is due by employers of blue-collar workers to finance holiday earnings.

9.1.3 Employees and Employers (before reductions)

The overall calculation of the contribution rates for employees and employers is summarized in Table 9.2 (for blue collar workers) and Table 9.3 (for white collar workers)29.

Table 9.2: Blue collar workers (% of gross earnings at 108%)
Contributions employee employer total
General contributions
General 19.88
Pensions 7.50
Medical care 3.55
Disability benefits 1.15
Unemployment 0.87
Wage moderation
Wage moderation 4.32
Extra wage moderation white collars 0.00
Annual vacation blue collar
Annual vacation blue collar 5.57
Extra unemployment
Extra unemployment insurance for companies with 10 employees or more 1.60
Extra contribution wage moderation for companies with 10 employees or more 0.09
Special contributions
(Re)employment of vulnerable groups 0.10
Special contribution work related illness 0.02
Special contribution asbestos fund 0.01
Company closing fund
1 to 19 employees: general 0.14
1 to 19 employees: wage moderation 0.01
20 or more employees: general 0.19
20 or more employees: wage moderation 0.01
Temporary unemployment 0.10
Wage moderation 0.01
Global total
1 to 9 employees 13.07 30.16 43.2
10 to 19 employees 13.07 31.85 44.9
20 or more employees 13.07 31.90 45.0
Table 9.3: White collar workers (% of gross earnings)
Contributions employee employer total
General contributions
General 19.88
Pensions 7.50
Medical care 3.55
Disability benefits 1.15
Unemployment 0.87
Wage moderation
Wage moderation 4.32
Extra wage moderation white collars 0.00
Annual vacation blue collar
Annual vacation blue collar 0.00
Extra unemployment
Extra unemployment insurance for companies with 10 employees or more 1.60
Extra contribution wage moderation for companies with 10 employees or more 0.09
Special contributions
(Re)employment of vulnerable groups 0.10
Special contribution work related illness 0.02
Special contribution asbestos fund 0.01
Company closing fund
1 to 19 employees: general 0.14
1 to 19 employees: wage moderation 0.01
20 or more employees: general 0.19
20 or more employees: wage moderation 0.01
Temporary unemployment 0.10
Wage moderation 0.01
Global total
1 to 9 employees 13.07 24.59 37.7
10 to 19 employees 13.07 26.28 39.4
20 or more employees 13.07 26.33 39.4

9.1.4 Exemptions and Special Cases

The computation of the social security contributions is (or is not) implemented according to different rules30 for the following categories of employees.

9.1.4.1 Pharmacists, sales representatives, company agents, transporters of people or things, doctors in training, scholarship holders, temporary workers, house staff, cleaning staff, sailors

People employed in one of these jobs are treated as regular employees (and are therefore subject to social contributions for employees) as long as their services are executed within the context of an employment contract31. Should it be otherwise, they fall within the social security contributions scheme for self-employed. It is worth noting that doctors in training are exempt from all social contribution schemes except for the one for health care.

9.1.4.2 Athletes

With regard to paid athletes, a distinction must be made between athletes who fall within the scope of the law of 24 February 1978 – related to the employment contract of paid athletes – and those who do not. This law defines the paid athlete as an individual whose remuneration (provided by a third person) for his activity exceeds a certain amount. To determine this amount, all the sums to which the athlete is entitled must be taken into consideration (e.g. fixed remuneration, victory bonuses, reimbursement of expenses). The annual amount for the period 01/07/2019 – 30/06/2020 is set to €10,61232, and it is unchanged for the period 01/07/2020 – 30/06/2021. The athletes concerned by this law are presumed to have a regular employment contract (the proof of the opposite cannot be brought), which, therefore, must obligatorily be declared to the ONSS. The same applies to football, basketball, volleyball and cycling coaches and to football and basketball referees whose annual remuneration reaches the amounts set out above. Persons who do not fall under this law must be declared to the ONSS only if they are linked to an employment contract. In some cases, contributions must be calculated on the basis of a fixed monthly amount. From 01/03/2020, this amount is €2,399.2533. This amount is valid both for athletes who fall under the law of 24 February 1978 and for those who do not. Specifically, if the athlete’s gross monthly remuneration amounts to at least €2,399.25 (from 1 March 2020), the contributions will be calculated on this amount, otherwise, on the actual remuneration. The contributions of coaches and referees subject to the provisions of the law of 24 February 1978 or under an employment contract are not calculated on the above lump sum. They are always calculated on their actual remuneration.

9.1.4.3 Organizers of sport events

People employed exclusively on the days during which a sport event takes place by the organizers of such event are exempt from the social contributions to the ONSS. These services must not exceed 25 days per year with one or more employers. This provision is not applicable to athletes.

9.1.4.4 Socio-cultural sector

The following employers are exempt from declaring to the ONSS the persons employed in socio-cultural services (e.g. animators in sports vacation courses), provided that these do not exceed 25 working days with one or more employers during a year.

  • The State, the Communities, the Regions and the provincial and local administrations;
  • The RTBF (Radio-télévision belge de la Communauté française), the VRT (Vlaamse Radio- en Televisieomroeporganisatie) and the BRF (Belgischer Rundfunk);
  • Employers organized as a non-profit association or as a social enterprise;
  • Organizations recognized by the competent authorities, whose mission is to provide socio-cultural training and/or sports initiation;
  • Schools subsidized by a Linguistic Community.

If the employment exceeds 25 days in a year, social security contributions are due for the full period of employment in the socio-cultural sector.

9.1.4.5 Artists

According to the system for small allowances that came into force on 1 July 2004, amateur artists, who perform “small-scale artistic activities” for which they receive only a small compensation, do not fall within the scope of the social security law (and must not declare these compensations to the ONSS). The compensation for the artist’s performance cannot exceed 130.79€/day (2020) and 2,615.78€/year (2020)34 for all his artistic performances. When the artist provides services for several principals over a single day, the maximum daily amount is to be understood by principal; the annual maximum amount remains unchanged. In addition, the number of days during which an artist can provide services under this system is limited to 30 per year, and a maximum of 7 days in-a-row for the same principal. These special provisions do not apply to persons who either are bound to the same client by an employment contract, a company contract, a statute, or who work under the provisions of the article 1bis of the law of June 27, 196935. If the annual threshold or the number of days worked by the artist is exceeded, the client who employs him/her at that time must declare him/her to the ONSS, as well as the clients who will occupy him/her during the rest of the year. If there are principals for whom the artist provided services earlier in the year, they must also declare these services. If the daily threshold is exceeded by a principal, even if the annual threshold is not exceeded, the artist is subject to social security declaration under the ONSS for all the allowances which (s)he receives from this principal during the year. These regulations provide that the concerned artists must obtain an artist card.

9.1.4.6 Apprentices (work-study training)

Social security legislation assimilates apprentices to ordinary workers36 and limits their subject to only certain social security schemes until the 31st December of the year in which they turn 18. In fact, apprentices younger than 18 are only subject to the following regimes of the social security system: unemployment, health care and holidays. With the 6th State Reform, the legislative competence of apprenticeships was transferred to the regions. Yet, whether or not to subject social security to salaried workers remains a federal competence. Therefore, any new training must be examined in the light of the conventions of 1 July 2015 on work-related training.

9.1.4.7 Interns/Trainees

If an internship is not remunerated, the intern must not be declared to the ONSS by the employer. If the internship is remunerated or if a compensation is paid, the nature of the employment relationship must be examined. Specifically, a distinction between training contracts and employment contracts must be made. Whether the internship is imposed by a study program or not can be an important factor in determining whether it is a training contract or a work contract. In the case of a training contract, if the trainee meets the definition of “apprentice” in the context of a work-related training, (s)he is subject to social security for salaried workers (see previous paragraph). On the other hand, when the aim of an internship is rather to provide work services, these services are considered to have been carried out in the context of an employment contract and they are always subject to ONSS declarations. It is worth noting, however, that any contract concluded with a student is presumed to be a “student work contract”. The law of 21 December 2018 provides the trainees not subject to social security contributions (“small status trainees”) with a general insurance for occupational accidents. For these trainees, social security contributions are not due. However, the ONSS still acts as an operator to collect the data and to provide the necessary information. Finally, people who carry out an internship imposed by the regulations governing access to certain liberal professions (e.g. lawyers) are not bound by an employment contract. Consequently, these trainees should only be declared to the ONSS if the traineeship is completed in execution of an employment contract.

9.1.4.8 Home workers

Home workers are people who, in a place chosen by them, work on raw materials or partially finished products commissioned by one or more clients. The application of social security only concerns manual labour. It follows that people who carry out intellectual work at home (e.g. translation, private tutoring) should only be declared to the ONSS if they are bound by a work contract.

When home workers themselves hire workers to help them, two possibilities can arise:

  • if they do not employ more than four workers, they and their workers are subject to the social security scheme for salaried workers. They are required to communicate the necessary information to their principal in order to enable him/her to comply with his/her obligations towards the ONSS;
  • if they employ more than four assistants, they are considered to be contractors themselves and therefore they become self-employed. With regard to their workers, home workers are considered as employers and they must therefore declare them to the ONSS.

As the number of days actually devoted to work provided by home workers is not always known, the ONSS accepts this number to be fixed on the basis of the same criterion as that provided by the legislation on unemployment. This means that the number of working days is obtained by dividing the quarterly remuneration by 1/26 of the amount of the guaranteed average monthly minimum income (€1,593.81 from 1 September 2018). If the result of this operation (rounded if necessary) is higher than the number of days (except Sundays) included in the quarter, the number of working days will be limited to the number of working days in the quarter.

9.1.4.9 Disabled workers and apprentices

In terms of social contributions, disabled people are declared as regular workers, with the same contribution rates, unless they are employed in approved adapted work companies. In fact, for these enterprises, no salary moderation is due on the remuneration of a disabled person. People with disabilities who work under an apprenticeship contract, a professional adaptation contract or a vocational training contract, from 1 October 2017, are no longer subject to social security contributions (and no declaration can be made for them). This also applies if they are not bound by a work contract and if they do not meet the conditions for apprentices.

9.1.4.10 Students

All young people aged 15 or more, who are no longer subject to compulsory full-time education (but who are still attending school/college/university), can be considered as “students” for their working contract. All paid students employed with a regular work contract are subject to social security contributions, except:

  • if the student works under a “student employment contract”, as referred to in title VII of the law on employment contracts of 3 July 197837;
  • if the student works for a maximum of 475 hours per year38 with one or more employers;
  • in the periods39 when the student is engaged in compulsory attendance at classes or at other activities.

In these aforementioned cases, the student and his employer are not liable for ordinary social security contributions but only for a lower contribution known as “solidarity contribution”. An employer who wants to declare someone to the ONSS with the application of the solidarity contribution must ensure that this person is actually a student. A proof/attestation of enrolment in a (high)school or university for the current school or academic year is sufficient. The percentage of the solidarity contribution is 8.13% of the student remuneration, of which 5.42% is borne by the employer and 2.71% by the student. In addition to the employer contribution, a 0.01% contribution for the financing of the Asbestos Fund (only in the 1st and 2nd quarters of the year) must be added. By remuneration, the amount which would be subject to ordinary social security contributions if the student did not meet the exclusion conditions (gross earnings) is considered.

9.1.4.11 Doctors

Doctors are subject to the social security scheme for salaried workers only if they are employed under a contract or a statute (otherwise they are considered as self-employed). In addition, a specific provision applies to doctors employed in hospitals, educational or professional guidance services, psycho-medico-social centres and medical surveillance school services. Specifically, doctors who, in addition to their services in one of these institutions, practice medicine outside these institutions must not be declared to the ONSS. Rather, they are liable for the contribution scheme for self-employed workers (unless they are paid exclusively in a fixed manner for their services in one of these institutions).

9.1.4.12 Babysitters sui generis

A sui generis babysitter is a natural person who is affiliated with a service approved by the local Linguistic Community for the reception of children in a home intended for a family reception and who is not bound by an employment contract. The approved service is considered to be the employer of sui generis babysitters. Social security contributions of sui generis babysitters are calculated in a special way. That is, they are calculated on the basis of a fictitious salary which is obtained by applying the following formula: \[T \times E \times L,\] where

  • \(T\) = number of reception days. A day of reception corresponds to the reception of a child for 1 day;
  • \(E\) = 1.9;
  • \(L\) = \(3 \times \text{R.M.M.M.G.}\) (guaranteed average minimum monthly income) of the month divided by 494.

The amount of the fictitious remuneration is calculated per month, as L can vary in the event of a change in the R.M.M.M.G. during the quarter.

9.1.4.13 Fishermen at sea

The social security contributions due by the members of the crew of a fishing vessel and by the apprentice ship’s boys40 (as referred to in the law of September 23, 1931 on the recruitment of sea fishing personnel) are calculated on daily flat-rate remunerations, regardless of whether these workers benefit from a fixed remuneration or if they are remunerated totally or partially according to the fishery product. The daily remuneration for the fishing vessel crew is €84.36, that for apprentice ship’s boys is €42.13. The number of days actually worked by fishermen is obtained by adding the days worked in the port and the days of navigation.

9.1.4.14 Skippers

From 1 January 2016, all workers engaged in inland navigation must be directly declared to the ONSS, while the special compensation fund for family allowances of inland waterway companies (BK4) ceases to exist. Nevertheless, the calculation of contributions is not modified. This means that employers who use one or more boats for third parties calculate contributions for their inland waterway staff on 22/25nd of the declared gross remuneration.

9.1.4.15 Agricultural workers

Workers engaged in the cultivation of hop plants, in the gathering of hops and tobacco or in the cleaning and sorting of white poplars are not to be declared to the ONSS if the following conditions are met simultaneously:

  • their benefits do not exceed 25 working days per year;
  • the worker was not subject to social contributions to the ONSS during the same year due to an activity carried out in the same sectors;
  • the occupation falls within a defined period41.

9.1.4.16 Personal assistants

From 1 January 2005, work carried out under a personal assistance scheme which is not an employment contract may, under certain conditions, fall under the social security of salaried workers.

9.1.4.17 Volunteers

“Volunteers”, as referred to in the law of July 3, 2005, relating to the rights of volunteers and their organizations, are not subject to the ONSS contributions. The activity that a volunteer firefighter, a volunteer paramedic or a volunteer Civil Protection officer performs in this context is not considered as volunteering.

9.1.4.18 Workers in Associations

As part of the so-called “complementary activities”, as referred to in the law of July 18, 2018 on economic recovery and strengthening social cohesion, it is possible, under certain conditions, to carry out activities for an association or organization without being subject to the ONSS. Specifically, this applies to associations that either are registered to the Banque-Carrefour des Enterprises or (in case of a de facto association) that are identified with the ONSS. An association worker can earn up to 6,340€/year (2020) without having to pay taxes or social security contributions. This corresponds to 528.33€/month, which is doubled for an active association worker42.

9.1.4.19 AR 499: Disadvantaged youth

The Royal decree n° 499 foresees that the disadvantaged young people employed by certain ASBLs (association sans but lucratif) should not be declared if the amount of their remuneration is limited.

At the time of employment, these young people:

  • must be between 18 and 30 years old;
  • cannot benefit from unemployment benefits or other allowances;
  • are not in a vocational training within the framework of the legislation relating to employment and unemployment.

9.1.4.20 Volunteer firefighters, paramedics and Civil Protection officers

A special system of exclusion from social security – on the basis of article 17quater of the royal decree of 28 November 1969 – is applicable to the following persons:

  • volunteer firefighters and paramedics in a rescue zone;
  • paramedics with a certificate issued by a training and development centre for paramedics;
  • Civil Protection volunteers.

The indemnities for “exceptional” services, which these volunteers execute with the organizations that employ them, are always exempt from social security contributions, whatever the amount of the indemnity is. Compensation for “non-exceptional” services is exempt from social security contributions provided that it does not exceed the amount of €785.95 (not indexed) per quarter. The indexed amount is equal to €1,100.49 per quarter (from the 4th quarter of 2018). When the ceiling of €1,100.49 is exceeded, employee and employer social security contributions are due on the total amount of compensation for “non-exceptional” benefits, and not only on the part which exceeds the ceiling. A person who operates in a rescue zone or who is bound to an approved ambulance service or to Civil Protection by an employment contract, a statutory designation or a service contract can no longer carry out services as a volunteer with the same organization. When the ONSS notes the accumulation of allowances, then all the indemnities for professional activity are subject to social security contributions.

9.1.4.21 Workers paid by tips

For workers remunerated in whole or in part by tips, contributions are calculated on a daily flat-rate remuneration according to the scheme reported in Table 9.4. If the worker is uniquely paid with tips, contributions are calculated on the amount obtained by multiplying the number of working days by the applicable daily rate. The result of this calculation is increased by 8% (blue-collar workers). When the worker’s remuneration is made up of tips or service and other amounts, the contributions are calculated:

  • on a lump sum basis (equal to workers remunerated exclusively with tips), if this amount is at least equal to all of the compensations and benefits (108%) owed by the employer;
  • on all of the compensations and benefits (108%) owed by the employer, excluding tips or service, if this total is higher than the amount established in accordance with the rule applicable to workers remunerated exclusively with tips.
Table 9.4: Daily flat-rate remunerations for workers paid by tips (in €)
Position Work shifts spread on six days/week Work shifts spread on five days/week
Restaurant
Commis débarrasseur 83.0 99.7
Commis de suite 83.0 99.7
Commis de rang 83.0 99.7
1/2 chef de rang restaurant 95.8 115.1
Garçon/serveuse restaurant 99.2 119.1
Chef de rang restaurant 99.2 119.1
Premier chef de rang restaurant 102.2 122.7
Sommelier(ère) 102.2 122.7
Assistant(e) maître d’hôtel rest. 121.5 145.8
Maître d’hôtel restaurant 130.3 156.4
Banquet
Aide-serveur(se)/commis 83.0 99.7
Garçon/fille banquet 85.1 102.2
1/2 chef de rang banquet 89.4 107.3
Chef de rang banquet 99.2 119.1
1er chef de rang banquet 102.2 122.7
Assistant maître d’hôtel banquet 121.5 145.8
Maître d’hôtel banquet 130.3 156.4
Brasserie, taverne, bistro
Garçon/serveuse brass., taverne, bistro 99.2 119.1
Café
Garçon/serveuse café 92.6 111.1
Bar
Commis barman/barmaid 83.9 100.8
Barman/barmaid 99.2 119.1
Responsable barman/barmaid 102.2 122.7
Hotel
Chasseur 83.0 99.7
Voiturier 83.5 100.3
Portier 83.5 100.3
Bagagiste 83.0 99.7
Valet/femme de chambre 84.7 101.7
Concierge 100.2 120.3
Chef concierge 121.5 145.9
Roomservice
Commis d’étage 83.0 99.7
Garçon/fille d’étage 99.2 119.1
Assistant(e) maître d’hôtel r.s. 121.5 145.8
Maître d’hôtel roomservice 130.3 156.4
Divers
Préposé(e) aux toilettes 83.0 99.7
Préposé(e) aux vestiaires 83.0 99.7

9.1.4.22 Occasional workers in agriculture and horticulture

In the agriculture and horticulture sectors, there are specific regulations for casual work. Under these regulations, contributions are not calculated on the actual remuneration, but on a fixed daily remuneration according to the following scheme (Table 9.5).

Table 9.5: Fixed remuneration for workers in agriculture
Sector Daily remuneration (in €)*
Chicory 25.3
Agriculture 20.7
Mushrooms 20.2
Horticulture 20.2
* Adapted to the consumer price index.

The days actually worked by casual workers, regardless of the number of hours worked per day, are declared for a fixed daily fee. For the contributions to be calculated on these daily flat rates, some day-limits must be met43. Since these workers are not subject to the annual vacation regime, this daily rate must not be increased by 8%.

9.1.4.23 Occasional workers in the catering sector (Horeca)

Any worker hired by an employer in the catering sector for a maximum of two consecutive days, within the framework of a fixed term employment contract, is an occasional worker. The ONSS accepts that the worker is declared as an ordinary worker even if (s)he does not work more than two consecutive days. The reverse, however, is not valid. Contributions for casual workers in the catering sector are calculated on advantageous fixed rates for a limited number of days (both for the worker and the employer). Specifically, these flat rates (that are indexed and increased by 8% for manual workers) amount to:

  • 8.22€/hour in case of hourly computation (with a maximum of €49.32);
  • 49.32€/day in case of daily computation (= 6 times the hourly rate).

The number of working days is limited to 50 days per year for the worker and to 200 days per year for the employer. Beyond these limits, the occasional worker may still be employed, but under the regular contribution regime (real remuneration or, for workers paid with tips, on the basis of daily lump sums44).

9.1.4.24 Flexi-job and Horeca workers overtime

From 1 December 2015, two new measures which aim at reducing the wage cost in the Horeca sector have come into force: the so-called flexi-jobs and the possibility of working overtime being exempt from social contributions. These systems also benefit from tax exemption. From 1 January 2018, the flexi-job system is extended both in terms of the people who can perform these flexi-jobs and of the sectors that can make use of this system. Anyone who has provided a sufficient number of services to another employer can be employed in the framework of a flexi-job. Flexi-jobs are not subject to the calculation of ordinary social security contributions, but only to a special employer contribution of 25%. This 25% contribution applies to the full salary (including holiday pay) paid to workers performing flexi-jobs. Within the Horeca workers overtime framework, the number of non-recoverable overtime hours that a worker can work on an annual basis in the catering sector is increased to 300 hours (360 hours if the employer uses a cash register system – SCE), with a maximum of 143 hours for a 4 month period. The salary paid for this overtime does not give rise to the calculation of contributions. Overtime is completely excluded from the calculation of reductions on contributions either.

In addition, from the employer’s side, the wage moderation contribution is not due for the following categories of workers:

  • young people until 31 December of the year in which they reach the age of 18;
  • paid athletes;
  • workers whose remuneration is wholly or partly made up of tips or service and for whom social security contributions are calculated on daily flat-rate remuneration;
  • fishermen and apprentice ship’s boys;
  • taxi drivers for the transportation of people;
  • disabled people employed in adapted work enterprises;
  • occasional workers in the agricultural and horticultural sectors;
  • staff members remunerated directly from the state budget;
  • members of the staff of an educational establishment paid directly by a Linguistic Community or by a public body which acts as the organizing authority for community education;
  • occasional workers in the Horeca sector declared with a flat rate.

9.1.5 Reductions for Employees

Employees are eligible for a reduction in social insurance contributions, called “work bonus”, if they satisfy certain income conditions. This basic reduction is calculated on the monthly full-time equivalent income (FTE), which is calculated as \[\hbox{FTE} = Y \times \frac{X_{F}}{X_{W}}\]
Where \(Y\) is the gross earnings, \(X_F\) is the number of days (or hours) of the full-time position and \(X_W\) is the number of days (or hours) worked. The entitlement to the work bonus on the basis of the FTE follows the rules described in Table 9.6.

Table 9.6: Basic reductions for employees
Monthly FTE (in €) Reduction amount (2020)
White collar
\(FTE\leq1674.49\) \(205.65\)
\(1674.49\leq FTE\leq 2611.78\) \(205.65-0.2194\times(FTE - 1674.49)\)
\(F \gt 2611.78\) \(0\)
Blue collar
\(FTE\leq 1674.49\) \(222.10\)
\(1674.49 \lt FTE \leq 2611.78\) \(222.10-0.2370\times(FTE - 1674.49)\)
\(FTE \gt 2611.78\) \(0\)

The actual reduction is calculated by taking the basic reduction and multiplying it by the fraction of the actual number of hours or days worked to the corresponding number for a full-time position (38 hours per week). If the number of hours worked per week is more than 38, a ratio of 1 is simply taken (working full-time). For a full-time employee the work bonus is equal to the basic amount.

9.1.6 Reductions for Employers

All employers can enjoy a structural reduction of social insurance contributions as a measure to stimulate employment. The structural reduction is applicable for all workers that are subject to all branches45 of social insurance. This means that the structural reduction is only for employers in the private sector. Since 2016, this system of structural reductions has been downscaled and simplified as part of the tax shift. Being W the declared quarterly payroll, and S the quarterly FTE46, reductions (R) are calculated as follow47:

  • General category: RCategory1 = \(0.14 \times (9,035 - S)\);
  • Social Maribel: RCategory2 = \(49 + 0.2557 \times (7,590 - S) + 0.06 \times (W - 13,249.80)\);
  • Adapted work companies (with moderate wages): RCategory3 (with salary moderation) = \(0.14 \times (9,640 - S)\);
  • Adapted work companies (without wage moderation): RCategory3 (without wage moderation) = \(375 + 0.1785 \times (9,035 - S)\).

To calculate the effective reduction, the above “theoretical” reduction, denote R, needs to be further adjusted, taking into account the effective labour time. The effective reduction (D) is calculated as \(D = R × μ × b\), with \(μ = \frac{hours \; worked}{38 \; hours}\) and \(b\) being defined as in Table 9.7.

Table 9.7: Coefficients \(b\) and \(\mu\)
\(b\) \(\mu\)
\(1/\mu\) \(\mu\geq0.80\)
\(1.18+0.28\times (\mu-0.55)\) \(0.55\leq\mu\lt0.80\)
\(1.18\) \(0.275\leq\mu\lt0.55\)
\(0\) \(\mu\lt0,275\)

Besides the structural reduction, there are several specific target-group reductions that aim at increasing the employability of certain more vulnerable groups. Employers can opt for one of these target-group reductions per worker employment line, provided that they and the worker meet the required criteria. Also, unlike structural reductions, the worker should not ex-ante be subject to all the schemes. As part of the 6th State Reform, a large part of the current reductions in employer contributions to specific target groups were regionalised. Existing general federal target-group reductions may continue to be applied. For regional target-group reductions, the ONSS remains the administrative and technical operator for their declaration and execution, but only the regions can, for workers in their territory, delete, modify or create new target-group reductions. The federal authority can no longer modify the existing regional target-group reductions. The target-group reduction (Pg) is calculated, per line of employment, as follow: Pg = \(G × \mu × b\). Depending on the group targeted, G corresponds to one of the following packages.

  • G1 = €1,000.00: for workers aged between 57 and 65 (Brussels Capital Region), between 59 and 62 (German Community) and between 58 and 61 (Walloon Region), and for youth in the alternating training system (Flemish Region);
  • G2 = €400.00: for workers aged between 56 and 59 (German Community) and between 55 and 57 (Walloon Region), and for the collective reduction of the working time;
  • G3 = €300.00;
  • G4 = €600.00: for workers aged between 55 and 60 (Flemish Region);
  • G5 = no longer applicable;
  • G6 = €1,150.00;
  • G7 = the balance of the basic contributions after application of the structural reductions: for the employment of the first employee, for the workers under the article 60 § 7 of the law of 8 July 1976 on the organic of the CPAS (not in the Flemish Region), for public sector replacements, and for the house staff;
  • G8 = €1,500.00: for workers aged over 62 (German Community and Walloon Region) and over 60 (Flemish Region);
  • G9 = €800.00: for guardians (German Community and Flemish Region), and for fixed employees in the horeca sector younger than 26;
  • G10 = €500.00: for fixed employees in the horeca sector older than 26;
  • G11 = €770.00: for babysitters;
  • G12 = €726.50: for artists;
  • G13 = the balance of the basic contributions after reduction of the salary moderation contribution;
  • G14 = €1,550.00: for the employment of the second employee (for the first 5 quarters);
  • G15 = €1,050.00: for the employment of the second employee (for the next 4 quarters) and of the third, fourth, fifth and sixth employee (for the first 9 quarters);
  • G16 = €450.00: for the employment of the second employee (for the subsequent 4 quarters) and of the third, fourth, fifth and sixth employee (for the next 4 quarters).

Between 31 December 2015 and 1 January 2021 an additional target-group package was available for the hiring of the first employee. Namely, it gave the right to a total exemption from basic employer contributions to social security (for the whole duration of the work contract).
The structural reduction can be combined with only one target-group reduction. In addition, the structural reduction and the target-group reduction cannot be combined with any other reduction in the employer contributions, with the exception of the Maribel social reduction.

The Maribel social fund was established with the royal decree of July 18, 2002, which governs the particular reduction system in the non-profit sector. Employers in this sector48 are entitled to a flat-rate reduction in contributions for each worker who, during a quarter, worked at least 50% of the number of working days/hours in a full-time occupation (33% in the case of adapted work companies). This is therefore a reduction in the sector in which the employer is active. The amount of the reduction is fully calculated and retained by the ONSS, and its proceeds are paid to a Maribel social fund. Employers must, however, take into account this social Maribel reduction when establishing the amount of other reductions to which they would be entitled. From 1 January 2020, the package is:

  • €409.37 for employers of the joint committee for caregiver and elderly services;
  • €507.48 for employers of the joint committee for health care establishments and services;
  • €498.31 for employers in the public sector social Maribel fund;
  • €539.95 for workers who are employed in an adapted work company (category 3 of structural reduction);
  • €504.10 for all other employers for each worker who falls within the scope of the social Maribel.

An additional financial subsidy, consisting of a reduction in the contributions due to the ONSS, is granted by the royal decree of September 22, 1989 to employers in the non-profit sector who are active in the promotion of employment among risk groups. The subsidy amounts to 2% of the gross wages of the workers (108% for blue-collar workers) increased by employer contributions (basic contribution, contribution for the size of the firm, holiday contribution for blue-collar workers).

Finally, since 1996, there has been a system of reductions of the contributions from the employers committed in scientific research activities49. The reduction consists of a total exemption from the basic employer contribution after reduction and from the salary moderation contribution.

9.2 Civil servants

Civil servants can be divided into two categories: staff of local and provincial authorities and that of other administrations. The first category of civil servants falls within the remit of the ONSS. For all other civil servants, the authority that employs them is responsible for the collection and payment of contributions, except for the contributions for health care, which are allocated to the salaried persons’ scheme.

9.2.1 Employees (before reductions)

Social insurance contributions for wage earners on the public labour market without statutory service are the same as those for wage earners on the private labour market. The only exception is that wage earners on the public labour market without statutory service do not have to pay contributions for company closure (company closure fund). On the contrary, the social insurance contributions for civil servants with statutory service are different than those for wage earners in the private labour market. Since civil servants are generally not covered by all branches of social insurance, they are subject to reduced rates of employees’ contributions. In principal, the employees’ contributions for statutory civil servants consist of a contribution for health care (3.55%) and, as of 2015, of a contribution for pensions (7.5%50). Therefore, the standard rate of the social insurance contribution for the civil servant is 11.05% of total gross earnings.

9.2.2 Employers (before reductions)

The employers’ contributions for civil servants with statutory service are different than those for wage earners in the private labour market. Moreover, there is a difference for civil servants working for the federal government and those working for local and provincial administrations. For statutory civil servants, provincial and local administrations are required to pay a basic employer’s contribution of 23.07 % to the ONSS overall management. This rate includes an employer’s contribution of 3.80% for health care. In addition to the basic employer’s contribution, they are also liable to the ONSS overall management of a wage moderation contribution of 5.67% of the salary. The provincial and local administrations that are affiliated to a Social Service are also liable to the ONSS for an additional employer contribution on the salary of staff members, both contractual and statutory. Depending on the actual case, the amount of this contribution is:

  • 0.14% (2019 and 2020) for the collective social service of provincial and local governments;
  • 0.15% for the Police Social Service (SSD-GPI);
  • 0.15% for the Gemeenschappelijke Sociale Dienst lokale besturen in Vlaanderen.

For contractual civil servants in other administrations, the basic rate of the employer’s contribution is 24.82% (17.82% for non-definitive statutory civil servants). As they are not liable of the wage moderation contribution, they also pay an additional 1.40% contribution.

9.2.3 Reductions for Employees

Certain low wage civil servants of local and provincial administrations might be eligible for a reduction of personal social insurance contributions if their monthly wage mass does not exceed a certain amount.

9.2.4 Reductions for Employers

Also for employers in the public sector at local or provincial level, programs exist that give right to a reduction of social insurance contributions. In principle the (public) employer of wage earners in the public sector without statutory service enjoys the same reductions as private employers if the employees are subject to all branches of social insurance (where required).

9.3 Modelling Assumptions

In the calculation of the social security contributions for blue-collar workers, the gross remuneration is increased to 108%. Therefore, we assume that - for this category of workers - the same calculation basis is also used for the computation of the reductions in the social security contributions (i.e. 108% of the gross earnings).
Target-group reductions for private sector employers and possible reductions in the social security contributions from the public sector (civil servants and public administrations) are not considered.

9.4 Module input

9.4.1 Variables

#> Warning in create_inputvar_table(path_xlsx): Some variables are missing:
#> act_occ, agr_sector, dag_p_sn, days_reception, days_worked, empl_risk_group,
#> gross_wage_prev_year, lhrwe_pw_fn, lse_p_hsc, maribel, non_def_statcivserv,
#> prov_loc_gov, soc_serv_aff, wage_moderation, workers_ft, worker_type,
#> y_minmonth, yemch_pyg_fm.
Name Description Database
act_occ actual occupation (specific) Other
agr_sector type of agriculture Other
dag_p_sn Age at the end of the income reference period SILC
days_reception number of reception days for babysitters Other
days_worked numbers of days of work in one year Other
empl_risk_group if the employer is active in the promotion of employment among risk groups (yes/no) Other
gross_wage_prev_year previous year gross wage for the employer of blue collar workers Other
lhrwe_pw_fn hours working a week - main job  HFCS
lse_p_hsc Status in employment household member HBS
maribel sub-category of employers who fall within the scope of the social Maribel Other
non_def_statcivserv if the workers are non-definitive statutory civil servants (yes/no) Other
prov_loc_gov provincial and local administration (yes/no) Other
soc_serv_aff social service with which an administration is affiliated Other
wage_moderation if an employer pays the wage moderation contribution (yes/no) Other
worker_type blue vs white collar workers Other
workers_ft number of full-time workers in a firm Other
y_minmonth guaranteed average minimum monthly income Other
yemch_pyg_fm yearly gross cash employment income HFCS

9.4.2 Parameters

Name Description Value (2020)
ssc_employee_adu employees / age of majority 18
ssc_employee_agr_ag employees / acriculture farmers daily salary 20.69
ssc_employee_agr_ch employees / chicory farmers daily salary 25.28
ssc_employee_agr_ho employees / horticulture farmers daily salary 20.22
ssc_employee_agr_mu employees / mushrooms farmers daily salary 20.22
ssc_employee_ath employees / athlets’ wage threshold 28791
ssc_employee_bc employees / blue collar workers multiplier 1.08
ssc_employee_bs_e employees / babysitters multiplier 1 1.9
ssc_employee_bs_l employees / babysitters multiplier 2 0.00607287449392713
ssc_employee_civ_serv_scr employees / civil servants / standard contribution rate 0.1105
ssc_employee_doc employees / doctors in training contribution rate 0.047
ssc_employee_fsh employees / fishermen daily salary 84.36
ssc_employee_hor employees / horeca workers daily salary 49.32
ssc_employee_red_am1_bc employees / reductions amount 1 blue collars 217.75
ssc_employee_red_am1_wc employees / reductions amount 1 white collars 201.62
ssc_employee_red_am2_bc employees / reductions multiplier amount 2 blue collars 0.237
ssc_employee_red_am2_wc employees / reductions multiplier amount 2 white collars 0.2194
ssc_employee_red_ftcoef employees / reductions full time coefficient 0.0263157894736842
ssc_employee_red_thr1 employees / reductions earnings threshold 1 1641.62
ssc_employee_red_thr2 employees / reductions earnings threshold 2 2560.57
ssc_employee_sb employees / ship boys daily salary 42.12
ssc_employee_scr employees / standard contribution rate 0.1307
ssc_employee_stu employees / students contribution rate 0.0271
ssc_employee_tip employees / tip workers daily salary 90
ssc_employee_yg employees / youth contribution rate 0.0557
ssc_employer_bc1 employers / blue collar contribution rate 1 (annual vacation) 0.0557
ssc_employer_bc2 employers / blue collar contribution rate 2 0.1027
ssc_employer_doc employers / doctors in training contribution rate 0.0615
ssc_employer_ee_1t19 employers / company closing fund contribution (1 - 19 employees) 0.0015
ssc_employer_ee_mt19 employers / company closing fund contribution (more than 19 employees) 0.002
ssc_employer_ee_mt9 employers / contribution for more than 9 employees 0.0169
ssc_employer_flex employers / flexi-jobs contribution rate 0.25
ssc_employer_red_mar_am1 employers / reductions / maribel social / amount 1 409.37
ssc_employer_red_mar_am2 employers / reductions / maribel social / amount 2 507.48
ssc_employer_red_mar_am3 employers / reductions / maribel social / amount 3 498.31
ssc_employer_red_mar_am4 employers / reductions / maribel social / amount 4 539.95
ssc_employer_red_mar_am5 employers / reductions / maribel social / amount 5 504.1
ssc_employer_red_riskgrp_coef employers / reductions / risk groups / coefficient 0.02
ssc_employer_red_str_awc_wm employers / reductions / structural / adapted work companies wage moderation / threshold 9640
ssc_employer_red_str_awc_wwm1 employers / reductions / structural / adapted work companies without wage moderation / threshold 375
ssc_employer_red_str_awc_wwm2 employers / reductions / structural / adapted work companies without wage moderation / multiplier 0.1785
ssc_employer_red_str_b_coef1 employers / reductions / structural / coefficient b / coefficient 1 1.18
ssc_employer_red_str_b_coef2 employers / reductions / structural / coefficient b / coefficient 2 0.28
ssc_employer_red_str_mar1 employers / reductions / structural /maribel social / starting amount 49
ssc_employer_red_str_mar2 employers / reductions / structural /maribel social / first multiplier 0.2557
ssc_employer_red_str_mar3 employers / reductions / structural /maribel social / first threshold 7590
ssc_employer_red_str_mar4 employers / reductions / structural / maribel social / second multiplier 0.06
ssc_employer_red_str_mar5 employers / reductions / structural / maribel social / second threshold 13249.8
ssc_employer_red_str_mu_thr1 employers / reductions / structural / coefficient μ / threshold 1 0.8
ssc_employer_red_str_mu_thr2 employers / reductions / structural / coefficient μ / threshold 2 0.55
ssc_employer_red_str_mu_thr3 employers / reductions / structural / coefficient μ / threshold 3 0.275
ssc_employer_red_str_std1 employers / reductions / structural / standard multiplier 0.14
ssc_employer_red_str_std2 employers / reductions / structural / standard threshold 9035
ssc_employer_scr employers / standard contribution rate (base rate) 0.1988
ssc_employer_skip employers / skippers adjustment coefficient 0.88
ssc_employer_spec employers / special contributions 0.0013
ssc_employer_spec_af employers / special contributions (abestos fund) 1e-04
ssc_employer_stu employers / students contribution rate 0.0542
ssc_employer_temp_un employers / company closing fund contribution (temporary unemployment) 0.0011
ssc_employer_wmc employers / wage moderation contribution 0.0432
ssc_employer_yg employers / youth contribution rate 0.0761
ssc_pub_adm_non_def_statcivserv public administrations / non-definitive statutory civil servants / contribution dor the PA 0.1782
ssc_pub_adm_provloc_css public administrations / provincial and local / collective social service 0.0014
ssc_pub_adm_provloc_gsd public administrations / provincial and local / gemeenschappelijke sociale dienst 0.0015
ssc_pub_adm_provloc_pss public administrations / provincial and local / police social service 0.0015
ssc_pub_adm_provloc_scr public administrations / provincial and local / standard contribution rate 0.2703
ssc_pub_adm_provloc_wmc public administrations / provincial and local / wage moderation 0.0567
ssc_pub_adm_scr public administrations / standard contribution rate 0.2482
ssc_pub_adm_wmc public administrations / wage moderation 0.014

9.5 Module output

Name Description
t_ssc_employee amount of the social security contributions for the employee
t_ssc_employer amount of the social security contributions for the employer

9.6 References

[] Social Security, Everything you have always wanted to know (in Belgium). Federal Public Service Social Security, 2018.

[] Sécurité sociale / Enterprise. 2020. URL: https://www.socialsecurity.be/online_fr/employer/infos/index.htm.

[] J. Derboven, Z. Rongé, S. Van Houtven, et al. “EUROMOD COUNTRY REPORT, BELGIUM (BE) 2016 – 2019”. In: n.d. (2019).

  1. https://www.rsz.fgov.be/en.↩︎

  2. The main branches are: incapacity for work and invalidity, pensions, accidents at work, occupational diseases, unemployment and annual vacations.↩︎

  3. For some categories of employees, contributions are calculated differently (see Section 9.1.4).↩︎

  4. For white-collar workers, annual vacation benefits are paid directly by the employer, whereas the annual vacation of blue-collar workers is paid by the National Office for Annual Vacation or a vacation fund with specific social contributions paid by the employer to the ONSS first. In the national accounts, annual vacation is not considered as a social security benefit but as part of the worker’s remuneration.↩︎

  5. The increase to 108% of the gross remuneration for blue-collar workers always applies.↩︎

  6. Pensions, sickness and disability, medical care, unemployment, family benefits, accidents at work, work-related illness/disease, educational leave, work integration/guidance programs for youth, childcare.↩︎

  7. For the commercial sector and adapted work companies; for the non-commercial sector the base rate remained 24.92%.↩︎

  8. Both tables refer to 2019/2020 rates.↩︎

  9. Exemptions, different rates for contributions or different calculation basis.↩︎

  10. Pharmacists are presumed to be bound by an employment contract with the owner or the tenant of the pharmacy. Should the pharmacist be the owner himself, it clearly does not apply.↩︎

  11. €10.200 for the period 01/07/2017 – 30/06/2019.↩︎

  12. €2,352.21 from 01/09/2019 to 29/02/2020.↩︎

  13. Amounts for 2018 – annual: €2,534.11, daily: €126.71. Amounts for 2019 – annual: €2,578.51, daily: €128.93↩︎

  14. The article 1bis of the law of June 27, 1969 foresees that persons, who cannot be bound by an employment contract because one or more of the essential elements for the existence of the contract are non-existent, and who provide services or produce works of artistic nature in exchange of a remuneration on behalf of a client (natural or legal person), must declare these revenues to the ONSS. In this case, the principal is considered to be the employer and must assume the obligations incumbent on any employer (e.g. identification with the ONSS).↩︎

  15. For the definition of the “apprentice” assimilable to ordinary worker (conventions of 1 July 2015), see: https://www.socialsecurity.be/employer/instructions/dmfa/fr/latest/instructions/persons/specific/apprentices.html.↩︎

  16. For the contrat d’occupation d’étudiants, see: https://emploi.belgique.be/fr/themes/contrats-de-travail/contrats-de-travail-particuliers/contrat-doccupation-detudiants?id=41944. It is worth noting that, when employers can offer a student employment contract, they are obliged to do so. Therefore, it is an obligation rather than a choice, even if the student and the employer opt for an ordinary declaration of the employment and not for the solidarity contribution system.↩︎

  17. The count of the 475 hours starts from the beginning of the year and the hours can be freely spread over the year. When the quota is exceeded, ordinary contributions are due from the 476th hour.↩︎

  18. Periods during which the student is supposed to take the courses or to attend the activities of the institution in which (s)he is enrolled/registered.↩︎

  19. In French: apprentis-mousses.↩︎

  20. The period in which any of these plants are cultivated.↩︎

  21. Animator/coordinator who provides a sports initiation and/or sports activity: sports trainer, sports teacher, sports coach, youth sports coordinator, sports referee, jury member, steward, pitch or equipment manager, flagman at sports competitions.↩︎

  22. Workers can only be employed by one or more employers: for a maximum of 65 days per year in the horticulture sector; for a maximum of 30 days per year in the agricultural sector; for a maximum of 35 days per year in the chicory sector; for a maximum of 156 days per year in the mushrooms sector.↩︎

  23. See Table 9.4.↩︎

  24. Employers of young people (until December 31st of the year in which they turn 18), paid athletes, casual workers in the agricultural and horticultural sector and doctors in training are therefore excluded.↩︎

  25. See Section 9.1.5.↩︎

  26. Should W and/or S be such that R is negative, the employer is simply not entitled to the reduction (a “negative reduction” is equal to a “zero reduction”).↩︎

  27. For the complete list of employers and employees concerned, see: https://www.socialsecurity.be/employer/instructions/dmfa/fr/latest/instructions/reductions/otheremployersreductions/workpromotion_nonprofitsector.html.↩︎

  28. These are: universities and similar educational establishments; scientific institutions or establishments managed, approved or subsidized by the Federal State, the Communities, the regions or, for what concerns the Brussels-Capital Region, the Joint Community Commission; Sciensano.↩︎

  29. 1.5% for managers.↩︎