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Historically, employer social security contributions have been uncapped. However, the Program Law of 18 July 2025 represents a significant policy development by introducing a cap on employer social security contributions for employees in both the private and public sectors. This summary provides an overview of the principal elements of the new legislation.
The Program Law was published in the Belgian Official Gazette on 29 July 2025 and took effect on 1 July 2025. While a Royal Decree will need to set detailed rules for the cap, the NSSO has issued provisional guidance in its administrative guidelines.
Purpose and objectives
The introduction of the cap serves two primary objectives:
- To reinforce Belgium’s competitiveness and attract high-paying knowledge-based roles.
- To curb the shift towards remuneration structures that circumvent social security contributions, particularly where base salaries are substantial.
Threshold of € 85.000 per quarter
The cap on employer social security contributions applies when an employee's salary with a single employer exceeds a specified limit:
- In 2025, this limit is €85,000 per quarter.
- By 2027, the threshold is expected to decrease to €67,500 per quarter.
The threshold will be indexed over time. The threshold is absolute and will not be prorated in case of part-time employment or incomplete quarters.
The cap applies solely to the basic employer contribution, which is 24.92% in the private sector. Other contributions, including employee social security contributions and special employer contributions, are not affected by the cap and remain applicable to the total salary. In practice, the exemption will be implemented through a reduction in contributions in the quarterly declarations.
Salary elements reported under salary codes 1 and 61 in the DmfA
The assessment of whether the threshold is reached will be based exclusively on amounts reported under salary code 1 (code 61 for civil servants), which typically reflect benefits directly associated with performance during the quarter. Only these earnings qualify for the exemption. As a result, bonuses, end-of-year premiums, termination indemnities, usually reported under salary code 2, will not influence the threshold, which underscores the focus on positions with high base salaries.
Guidance and support
Developments will be monitored and updates provided as necessary. For any additional information or clarification regarding the cap on employer social security contributions, please contact the team.