It's not always easy to find your way around the recruitment aid sector in Belgium. These matters depend on several levels of authority and vary according to whether your company is located in the Flemish, Walloon or Brussels Regions, as the benefits are not always the same. When the provisions are federal, they benefit everyone in the same way. Here’s how it works.
#1 The effects of the taxshift
During the last legislature, we heard a lot about the tax shift. As a device, the tax shift aims to shift the burden of taxation on labour, which is very high in Belgium, to other tax sectors (capital income, excise duties, property income, consumption, pollution, etc.).
One of the key measures of the tax shift to boost growth and encourage companies to recruit is aid for entrepreneurs when hiring their first employee. This aid scheme is still available until 31 December 2021, and it would be a pity not to take advantage of it, as it allows exemption for life from employer contributions on the first recruitment. This exemption is not linked to the worker but to the first recruitment. The benefit remains in force even if the worker leaves the company and is replaced by someone else.
#2 Employment benefits
In terms of regional aid, there is a type of support that is particularly useful for companies recruiting employees from the target groups (young, old or long-term employees).
These are systems such as Activa (Brussel), aanwervingsincentive (Flanders) and Impulsion (Wallonia), the principle of which is to pay the employee a work benefit. This is deducted from the net salary of the employee, who will receive the same amount, but the employer will have to pay less. The duration and amounts of the benefit vary from region to region and may be increased for certain categories of workers.
#3 Allowances and subsidies
In addition to tax exemptions and employment benefits, there is also a whole system of allowances and incentives for recruiting employers. To benefit from these, all you need to do is to recruit a member of staff from the target groups defined by the regions. In general, we are talking about young, older, long-term, disabled, etc. unemployed people. You also find training allowances for less qualified workers. In short, there is a whole range of measures designed to make recruitment easier for you.
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