Following months of negotiations, union protest and controversy among employer organizations, the federal parliament has approved a raft of legislation meant to balance that budget. Here’s what it means for your own budget.
Dossier
Will you have to work longer? Pension reforms and omnibus law approved by federal parliament
Lisa Bradshaw
Published:
The federal parliament has approved the so-called programmawet, or omnibus law, a package of new legislation put together in the ongoing efforts to reduce the budget deficit. At the same time, a decision has been reached on pension reforms.
The omnibus law and pension reforms have gone through months of negotiating amid much public opinion and protest. The omnibus law includes changes to salary indexing and taxes.
Salaryindex
Most employees in Belgium receive an automatic increase in their salaries at the beginning of every year. The percentage of this increase is established by the federal government, based on inflation.
Going forward, the salary index will apply as it always has to the first €4,000 gross pay. So anyone earning less than €4,000 will see no change at all. For amounts higher than €4,000, the percentage applied will be 2% less than the percentage applied to the first €4,000.
A concrete example: Let’s say the salary index is 3%. A worker earning €5,200 per month will receive that 3% on the first €4,000 and 2% less than that on the next €1,2000 (so 1%).
Tax increases
Taxes will increase for:
Air travel: From 1 January 2027, the tax on flights will increase from €5 to €10. In 2028, this will increase by another €0.50 for short-haul flights. That increase will repeat in 2029, for a total of €11 in taxes for short-haul flights. The measure will generate €175 million a year in government revenue.
Securities accounts exceeding €1 million: This doubles from 0.15% to 0.30%, generating €460 million a year.
Excise duties on gas and heating oil
Taxes will decrease for:
Electricity
Pension earnings
The pension system in Belgium has been thoroughly reformed. Among the most notable changes are:
People who retire before having worked for 35 years — with a minimum of 156 days each year and a total of 7,020 days over their career — will see their pension reduced.
Those who continue working beyond the statutory retirement age and meet similar conditions will receive a higher pension.
Pension age increases for military personnel and NMBS train chauffers.
The rules around pension for civil servants are also afffected by the reforms. At present, pensions for government workers are calculated on the basis of the final 10 years of their careers, when salaries are typically at their highest. This period will gradually be extended (over 35 years) to cover the last 45 years of a career. The reform mainly applies to tenured civil servants born in or after 1997.
The tax changes on energy are scheduled to take effect in August. Pension reforms will take effect in January 2027.