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Elections are coming up: what remains to be decided?

29 March 2024 Employers
Ellen Van Grunderbeek

The European, federal and regional elections are being held on 9 June 2024. Prior to that, the parliaments are being dissolved and the governments are going into caretaker mode.

This means policymakers need to finalise various political issues over the weeks ahead.

Which labour market issues still need to be resolved? Here is an overview.

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Further pension system reforms

The 2022 pension deal and the 2023 budgetary measures are to be further rolled out. In practical terms, this means that:

  • employees who continue working past the early retirement age will be entitled to a pension bonus;
  • the calculation rules for the minimum pension will be changing;
  • the special social security contribution paid by employers over very high supplementary pension schemes (the so-called "Wijninckx contribution") is set to double.

Flexi-jobs take further shape

Opt-in and opt-out

 Flexi-jobs are said to be allowed in a number of sectors from 1 April 2024. These will include:

  •  Flemish childcare;
  • the subsidised staff of the Flemish Community grant-maintained education system.

Several sectors have also made use of the opt-out option that allows the sector to (partially) restrict the use of flexi-jobs. However, these changes still need to be affirmed by a royal decree before the effective date of 1 April 2024 can be definitively confirmed.

Income cap for retired flexi workers 

 An annual income cap of EUR 12,000 applies to professionally active flexi workers.

 An income cap on income from flexi-jobs  is also said to be introduced for early retired flexi workers. In doing so, the proportionate share of flexi-income will be limited.

Redesigning Flemish support zones

From 1 November 2024, the three existing support zones in the Flemish Region are set to be replaced by four new support zones with a six-year validity period.

Target group reduction for persons without sustainable work experience

From 1 July 2024, the age limit for the target group reduction for persons without sustainable work experience will be dropped. This means that young people (from 18 years of age) and older workers (as long as they have not reached the statutory retirement age) will also be entitled to the target group reduction.

Launch of the Federal learning account

The Act establishing and administering the Federal Learning Account (FLA) will come into force on 1 April 2024. On 1 June 2024, the final version of the platform should be available. From that time forward, employers will have six months to enter the required data regarding their employees’ training rights. On 1 December 2024, use of this platform is set to actually become mandatory.

Amendments to legislation on sports and culture vouchers and tax scheme for the extension of the deadline for granting the purchasing power bonus

Work is still in progress to bring the sports and culture vouchers in line with the meal and eco vouchers. In doing so, sports and culture vouchers will also be able to be digitally issued and reactivated.

In the same move, tax legislation is also being amended so that the purchasing power bonus which may be issued until 31 March 2024 also remains exempt from withholding tax.

Ceiling on exempt bicycle allowance from EUR 2,500 to EUR 3,500 per year for workplace travel

As previously announced, the exempt bicycle allowance will be EUR 0.35 per effective kilometre from 1 January 2024. The total amount of the bicycle allowance is exempt on an annual basis (only) up to an amount of EUR 2,500 per employee (index-corrected amount for the 2024 income year). An increase in this ceiling up to EUR 3500 euros per year has been announced and is also already included in the NSSO instructions of the 1st quarter 2024.

The required social and fiscal legislation is still required to effectively raise this ceiling to EUR 3,500 per year.

Introduction of mandatory use of electronic control card temporary unemployment (eC3.2)

To receive temporary unemployment benefits, employees must provide their benefit disbursement organisation with a C3.2 control card at the end of the month. Since 1 September 2023, employees can use an electronic control card (eC3.2).

The National Employment Office (RVA) has announced the mandatory use of the eC3.2. It is not yet clear when this will be the case.

Miscellaneous Tax Provisions Act

An Act setting out various tax provisions is in the pipeline. Among other things, said legislation will regulate the following aspects:

  • The extension of the limitation period for the exemption from withholding tax for natural disasters. Without intervention, this measure would become impracticable,
  • The raise of the maximum exempt annual bicycle allowance from EUR 2,500 to EUR 3,500,
  • The tax credit for the increased employer contribution towards employees’ rail season tickets.

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Written by Ellen Van Grunderbeek

Legal advisor at Acerta

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