Economic stimulus plan
Last update: 12 February 2013 - 16:00 CET
The Government aims to increase the population's purchasing power by raising the workforce's net income and thus stimulate consumer activity within Belgium.
With the below measures, the plan is to render active employment more attractive and with greater remuneration. The Government also seeks to tackle the so-called welfare trap issue, whereby a citizen's financial rewards from being employed are insignificant in balance with the social benefits gained during a situation of unemployment.
An increase, from tax year 2014, in both the social (reduction of personal contribution) and fiscal (tax credit) working bonuses for workers or employees (private or public):
- Private and public employees earning a gross monthly salary of EUR 1,400 would benefit from a yearly net increase of EUR 68.
- The current working bonus system, which benefits private employees, is adjusted so as to eliminate welfare traps. Persons earning a gross monthly salary of EUR 1,800 would thus earn an additional maximum of EUR 134 per year.
- A private employee earning a gross monthly salary of EUR 1,800 would earn a total additional net amount of EUR 202 per year.
The Government wants to enhance the legal status of self-employed or independent workers through an increase of family pensions.
The 5 October 2012 Council of Ministers meeting (Dutch | French) confirmed that from 1 January 2013, the family pensions minimum for independent or self-employed workers will be increased. The aim is to bring equality between the respective minimum pension amounts for the independent/self-employed and for salaried employees.