Federal Government close to postponing increase to social contributions

Federal Government close to postponing increase to social contributions
Credit: Hatim Kaghat/Belga.

The Federal Government is said to be close to an agreement not to subject companies to an increase in social contributions in line with the upcoming wage indexation.

Due to the rampant inflation, wages are predicted to be indexed by 10% in January which would result in companies also having to increase their social contributions by the same amount.

The cost of such an increase would be a hefty €23 billion for companies in the space of two years. Employers already face €8 billion worth of salary raises in 2023.

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However, French-speaking newspaper L'Echo has reported that the Federal Government (which is currently holding budget negotiations) is nearing an agreement to postpone this increase in employers’ social contributions.

The report gave two primary reasons for the deferral: reducing the shock of wage increases for Belgian businesses and keeping them competitive on the international markets.

L’Echo also noted that the possibility of the Federal Government paying part of these social contributions for employers is being discussed.


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