The Flemish government has decided to extend the job bonus for at least another year and increase the existing salary thresholds, as announced by Minister of Employment Zuhal Demir (N-VA) on Sunday.
Initially, the Flemish government had planned to abolish the job bonus, anticipating a federal tax reform that would reduce labour costs. However, since this reform will not take effect until 2027, the Diependaele administration opted to maintain the job bonus for the time being.
The job bonus aims to increase the incentive to work. “As long as there is no federal tax reduction that fully compensates for the loss of the job bonus, the measure will remain,” Demir stated. “This way, we protect the purchasing power of 900,000 working Flemings.”
Simultaneously, the government decided to raise the salary thresholds slightly to keep pace with rising consumer prices, according to Minister Demir. This adjustment will occur twice over the coming year to ensure that those earning a minimum wage receive up to €700 net annually.
The first adjustment will take place in the first half of this year, and the second will occur either in October this year or in January next year, depending on the forthcoming federal legislation on indexation. The current lower limit of €2,100 gross per month will increase to €2,155 gross, and the upper limit will move from €3,099 gross per month to €3,155 gross.
