How to reduce your social security contributions in Flanders

Companies that set up a first base in Flanders can benefit from a social security reduction scheme related to first recruits. In a nutshell, they receive:

• a lifelong exemption from social security contributions (SSCs) for the first employee hired;
• further SSC reductions for the next five employees hired (for a period of over three years).

Overview: quarterly reductions on employers' SSCs in Flanders (as of Jan. 2022)

Does your company operate a base in Flanders, and are you hiring someone under the age of 25? In that case, the social security contributions you need to pay for this employee will be reduced for a period of two years. During the first eight quarters of employment, you don’t need to pay the basic employer contributions for low-skilled workers.

However, conditions in terms of maximum wage apply. The employees concerned may not earn more than:

• EUR 7,500 per quarter during their first year of employment; 
• EUR 8,100 per quarter during the second year.

To make hiring seasoned workers more attractive, Flanders has introduced a specific reduction scheme related to social security contributions. When hiring a non-working jobseeker over the age of 58, Flanders-based employers based can be exempt from paying basic employer contributions for a total period of 2 years.