How does the upper limit for employer contributions work?
The upper limit on employer contributions is designed to reduce the financial burden on your company while ensuring adequate social protection for employees. The arrangement is as follows:
- Limit amount/upper limit: the indexed limit amount above which no employer contributions are required has been set by royal decree. This is 85,000 euros gross per quarter. It includes all wage elements related to the work performed during the quarter.
- Application of the upper limit: employer contributions will only be required on the portion of the quarterly wage that is below this limit. For wages that exceed this threshold, no contributions will be required.
- Multiple employments: in cases of multiple employments with the same employer, the distribution of the limit amount will be clarified to ensure fair application of the upper limit.
What are the implications for specific contribution reductions?
In the calculation of certain specific contribution reductions, employer contributions on wages that exceed the limit will not be considered. These reductions include:
- The structural reduction: a general reduction of social contributions to encourage employment
- The reduction for scientific research: aimed at supporting companies that invest in research and development
- The reduction for seafarers in merchant shipping: intended to support this specific sector
The calculation method for these specific contribution reductions is explained in the royal decree.
Learn more: ‘Social wage costs: the RSZ contributions’.
Are other reductions being considered?
A reduction in wage costs for low and medium wages will be introduced, along with an expansion of the structural reduction of employer contributions. This reduction will be adjusted throughout the entire legislative term based on available budgetary resources. The amount of the structural reduction will vary depending on the employee's category, with three main categories. Another reform concerns the target group reduction of employer contributions for first recruitments, with certain limitations and expansions:
- First employee: unlimited reduction in time, with a maximum of 2,000 euros per quarter (currently 3,100 euros)
- From the second to the fifth employee: a maximum of 1,000 euros per quarter for three years. The amount is currently higher, but only for the second and third employee
You can find detailed explanations about the target group reductions in the other sheets of this theme ‘’Optimizing wage policy’.
Entry into force
This new measure will take effect retroactively from July 1, 2025.
What does Securex do for you?
If you have any questions about these measures and their application, please contact your Securex Legal Advisor at the following email address: myHR@securex.be.
You can also find extensive information on the calculation of the structural reduction in our file Structural reduction of employer contributions.
Sources
- Program law July 18, 2025, BS July 29, 2025
- Royal decree implementing Article 38, §1, paragraph 2, of the law of June 29, 1981, containing the general principles of social security for employees and amending Article 3 of the royal decree of May 16, 2003, implementing Chapter 7 of Title IV of the program law of December 24, 2002 (I), concerning the harmonization and simplification of the regulations regarding reductions of social security contributions
- RSZ Instructions
