The removal of the tax break on unemployment benefits will take effect on 1 July, Het Laatste Nieuws reported on Monday. This is due to affect some 36,000 people in Belgium.
The Federal Government had previously announced its intention to increase taxes on unemployment benefits as part of Belgium's unemployment insurance reform. The first group of unemployed affected by the new reforms was notified in September last year, and they lost their unemployment benefits on 1 January.
Initially, the proposed levy was set at €200 per month. Following several adjustments, the reduction in benefits has been lowered to €165 per month.
This tax will apply to all unemployment benefits received this year. However, the legislation has not yet been passed.
As a result, recipients of unemployment benefits will need to repay any excessive amounts through their tax return next year.
Once the measure is approved, the reductions will be automatically deducted at the source.
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The first wave of warning letters was sent digitally through the eBox system on 14 February, and one final round will be sent in March 2026. The reform affects individuals across all professional backgrounds, regardless of their employment history.
In total, 13,963 people in Wallonia, 5,824 in Brussels, 15,926 in Flanders, and 180 in the German-speaking community will lose their unemployment benefits between 1 July 2026 and 1 July 2027.
