Net monthly salaries will increase on average by 36 euros from 1 January due to the tax-shift measure, according to the SD Works human resources agency. The tax shift is a mesure created by the Belgian Government with the aim of creating more jobs and making employment more attractive. It entails lower employer contributions coupled with net salary increases. The first two phases of the measure were implemented in early 2016 and early 2018. The third phase takes effect on 1 January 2019.
In concrete terms, the non-taxable salary has been increased and a greater portion of the remainder is taxable at 40%, thus reducing the portion subject to a 45% tax.
While net salaries will go up, on average, by 36 euros come January, the increase will be proportionally higher for lower salaries.
An employee receiving a gross monthly salary of 2,000 euros will take home 1,612.63 euros net from January, an increase of 2.36% or 37.19 euros. Employees grossing 3,000 euros per month will earn take-home salaries of 1,955.51 euros (+1.87% or 35.84 euros). Finally, someone earning a gross monthly salary of 4,000 euros will receive a net salary of 2,394.91 euros (+1.52% or 35.85 euros).
This increase is calculated without taking into account any wage indexation or any possible increases stemming from collective labour agreements.