Belgium: a plan to exempt overtime hours in ‘crucial’ sectors from social security contribution payments

On 25 April, Belgium’s Council of Ministers approved a preliminary draft Royal Decree (which has yet to be submitted to the Council of State) that provides for financial support for workers and their employers operating in ‘essential’ economic sectors in the context of the coronavirus health crisis, by increasing their net income. The project plans to exempt overtime hours worked between 1 April and 30 June 2020 from social security contributions. This exemption will apply to overtime hours worked in excess of the 100-hour limit already provided for outside the current health crisis, or, in other words those authorized on an extraordinary basis by earlier federal government support measures, which had extended the possibility of working an additional 120 hours on a voluntary basis in these ‘essential’ sectors only. (c.f. article No. 11834). This incentive scheme is intended to respond to the manpower shortage linked to high absenteeism rates, particularly in the agricultural sector, which is in sore need of seasonal workers. A tax exemption for overtime hours has also been announced and draft legislation is due to be debated in the Finance Committee on 29 April.