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Social security target group reduction for first hires: envisioned changes as of January 2024

Global Employer Services | Reward & Mobility Alert

According to the new draft law containing various social propositions (Dutch | French), the target group reduction for first hires will be significantly changed  as of 1 January 2024.

Current mechanism

The current mechanism foresees the possibility for the employer to obtain a target group reduction of the employer’s social security contributions for its first hire (i.e. capped at EUR 4,000 per quarter for an indefinite period of time) and for its second to sixth hire (capped to EUR 450 – EUR 1,550 per quarter depending on the quarter concerned and for a definite period of max. 13 quarters).

Proposed changes

The changes envisioned in the new draft law are the following:

First employee

The current target group reduction for the first hire of EUR 4,000 per quarter will be limited to EUR 3,100 per quarter as of 1 January 2024 (still unlimited in time).

2nd and 3rd employee

No changes are foreseen in the draft law concerning the target group reduction for the second and third hire. 

4th, 5th and 6th employee

The current target group reduction for the fourth, fifth or sixth employee will be completely abolished as of 1 January 2024.

Transitional measures

The target group reductions for the fourth, fifth and sixth employee initiated before 1 January 2024 will continue to apply for the foreseen remaining duration of the reduction (max. 13 quarters), according the rules and reduction amounts as they applied on 31 December 2023.

Note that these changes are subject to final approval of the law.