Has the ceiling for tax-favoured overtime been reached? Then net overtime offers a possible alternative.
Read more: “Overtime: expansion and permanent regimes forthcoming”
What is the principle?
Fiscal advantages apply to a limited number of overtime hours per employee.
- The employee benefits from a tax reduction
- While the employer receives a partial exemption from the transfer of the advance tax levy
This makes these overtime hours financially attractive, although they remain subject to specific rules, such as the mandatory overtime supplement for both voluntary and involuntary overtime.
Read more: “Tax reductions (exemptions from transfer of advance tax levy), overtime”
The contingent remains limited to 130 hours for the time being
The tax-favoured regime currently applies to a maximum of 130 overtime hours per year and per employee.
A bill to reform personal income tax now provides for a permanent and retroactive increase to 180 hours from 1 January 2026. The vote on this bill is delayed, so this increase to 180 hours is not yet official.
Net overtime as an alternative
Are your employees (almost) reaching the contingent of 130 tax-favoured overtime hours? Then there is an alternative: net overtime.
These are voluntary overtime hours that are not subject to social security or advance tax levy (gross = net). Moreover, for this type of overtime, no compensatory rest and no overtime supplement are due.
Finally, a written agreement from the employee suffices for performing these overtime hours.
Read more: "Overtime: expansion and permanent regimes forthcoming”
As soon as the maximum of 130 tax-favoured overtime hours is reached, you can no longer apply this regime. Additional overtime remains possible, but then through the net overtime system.
The government intends to increase the number of net overtime hours from 120 to 240 as of 1 April 2026. This measure is also part of a bill and is therefore not yet final, but there is a political agreement on retroactive application. The FPS ELSD has meanwhile confirmed this.
Read more: "New regulation of voluntary overtime from 1 April 2026 | Federal Public Service Employment, Labour and Social Dialogue"
Securex will therefore already apply this increased limit of 240 hours.
What does Securex do for you?
Securex closely monitors the evolution of the legislation. As soon as the increase of the tax-favoured overtime contingent is officially published, we will inform you immediately.
Do you have specific questions on this subject? Your Legal Advisor will be happy to assist you. Contact him by e-mail at myHR@securex.be.
