The Council of Ministers has approved new reductions on employer contributions in relation to the first six jobs created by a business. “Today, the Council of Ministers has ratified the employment of a measure for further increases in reductions in such contributions for specifically for the third to the sixth workers.
This harmonises amounts contributed for the third to the sixth workers taken on from January 1st, 2017,” a communiqué states.
If we compare this to the current situation, in force since the tax shift, with these new reductions, there will be average savings of 15,900 euros in employer’s contributions for a business taking on six full-time employees from January 1st, 2017.
“These new exemptions have the aim of helping businesses create jobs, and therefore economic activity,” the Minister for SMEs, Willy Borsus was delighted to announce.
The Minister of Social Affairs, Maggie De Block indicated, “The strengthening of the reduction of target groups of those ‘initially recruited’ makes it possible to reduce employers’ contributions by 1,050 euros per quarter during the first two years.
She went further, “Such contributions will be practically reduced to zero.”