What does the summer agreement mean for employers?

Bonus-malus system

First, an agreement has been reached on introducing a new bonus-malus system. This system provides, on one hand, a reduction in pension for those who leave the labour market before the statutory retirement age, and on the other hand, a bonus for those who work longer. This system will start from 1 January 2026. 

 The bonus or malus percentage will be determined by the year of birth of the pensioner. The malus will not apply to pensioners who have worked half-time (156 days a year) for at least 35 years and can demonstrate a career of at least 7,020 days. Periods of illness and disability will, however, be compensated in the calculation of the malus.     

Relationship between work and pension  

To strengthen the relationship between work and retirement, measures will be taken from 1 January 2026 regarding the equivalent periods.   

 Certain periods of inactivity will no longer be equated in the calculation of the pension. These include (long-term) unemployment (with company allowance) and ‘landing jobs’ (end-of-career time credit schemes; a Belgian scheme allowing older workers to reduce working hours before retirement). Periods of care leave and sickness and disability remain exempted. 

Civil servant pensions

For civil servant pensions, not only the salary of the last ten years (or less) of the career will be taken into account. The reference period will be extended annually until it aligns with the reference period (of 45 years) for employees in 2062. 

It is also expected that the equalisation of civil servant pensions (which means they increase when the salaries of active civil servants rise) will be reformed, as provided for in the government agreement. 

The retirement age will be gradually increased for NMBS railway personnel and for military personnel. Thus, the retirement age for these groups will become the same as that of other employees and civil servants. Some advantageous pension regimes for civil servants – which meant they had to work fewer years – are also being phased out. 

Labour market policy

Labour market policy reforms will also be implemented.

Dismissal rules

Notice periods for dismissal are capped at a maximum of 52 weeks. Currently, these terms increase the longer an employee works for the same employer, with no maximum. This can lead to very long notice periods. With this new rule, the notice periods are calculated in the same way, but from a certain seniority, the notice period remains the same. After 18 years with the same employer, the notice period always remains 52 weeks (except when the employee retires).

Employee dismissal has already been subject to a 13-week maximum since October 2023.

Furthermore, the notice periods will be shorter during the first 6 months. During this period, the notice period is one week, both for dismissal by the employer and by the employee.

Some see this as a return of the probationary period. However, nothing changes for the first 3 months of the contract, as the notice period there is already one week. However, it does shorten the notice period between the 4th and 6th month, as the current period is 2 weeks in case of dismissal by the employee and 3 weeks in case of dismissal by the employer.

Working hours

The voluntary overtime scheme will be reformed and made structural. Currently, there is a temporary extension of the 220 hours until 31 December 2025.  

The quota will be 360 hours (450 hours for the hospitality sector). 240 hours can be paid without withholding social contributions or withholding tax (360 hours for the hospitality sector). 

 Furthermore, the ban on night workwill also be lifted. Night work in the distribution sector and e-commerce will change to work between 00:00 and 5:00 (instead of 22:00 to 6:00). This will impact the premiums linked to night work. The arrangement will only apply to new hires and will not apply to ongoing night work; these employees must not be disadvantaged by the new arrangement.  

 For part-time workers, the rule of working at least 1/3 of a full-time working week disappears.

Other measures

The government also announced that it is following the social partners’ advice on ‘landing jobs’ (also known as ‘end-of-career time credit’). Specifically, this means that:

• Employees with a long career can continue to receive a benefit from the Belgian National Employment Office (RVA) from age 55.
• For a benefit from age 60, a longer career will be required. The career requirement is 31 years in 2026 and will increase each year – to 35 years in 2033. For women, this career requirement will also increase for sociological reasons, but will remain lower than for men.

Additionally, the government wants to relax the rules around temporary work. The obligation to record the intention for a temporary contract individually for each temporary worker at the first hiring will be abolished. Hiring through temporary contracts will thus be made simpler. 

Tax reforms

Finally, the government wants to realise a €500 difference between working and not working. In doing so, the summer agreement provides for a net increase of 100 euros per month for those working, by 2029. To achieve this, several measures are envisaged: 

• increasing the tax-free sum to €15,300 in 2029, as well as an equal tax benefit for all dependent children. The first increase would happen in 2026;
• an adjustment of the special social security contribution in favour of single persons. They would gain up to €365 a year as a result;
• an increase in the work bonus, making gross pay equal to net pay for the lowest wages;
• the phase-out of the marriage quotient.  

 Additionally, the following tax measures are also planned: 

• the number of tax-advantaged overtime hours is set permanently at 180 hours;  
• the reintroduction of the copyright regime for the IT sector (after it was abolished in 2023); 
• a fixed rate of 33% on the income of pensioners who earn extra after retirement, replacing the classic progressive tax rates.