Unemployment benefits in Belgium will face higher taxes starting next year, according to a document on the federal government’s summer agreement seen by VRT News and confirmed by the office of Minister Jan Jambon (N-VA).
Currently, unemployment benefits receive tax reductions consisting of a base reduction and an additional reduction. The additional reduction is scheduled to be eliminated in 2026, and the base reduction will be gradually phased out by 2029, as confirmed by Jambon’s office. The aim is to widen the financial gap between those who work and those who do not.
The Christian union ACV predicts that some unemployment benefits will fall below the subsistence level by 2029 due to these changes. They provided calculations for 2029, when the tax increase on unemployment benefits is expected to be fully implemented.
In addition to unemployed individuals, some pensioners will also face higher taxes. Like the unemployed, pensioners currently receive a tax reduction. Unlike the unemployment benefits, this reduction for pensioners will not be abolished but will be gradually decreased, depending on the amount of pension received.
