Indexation forecast 04.2026 – 01.2027
As mentioned in our previous newsletter, Belgium’s minimum wages in the private sector are regulated through sectoral collective labour agreements, which introduce indexations at a fixed moment in the year with a variable percentage or indexations at a fixed percentage at variable moments within the year. In the upcoming months of 2026 until January 2027, we are expecting raises in the following sectors:
- The construction sector (JC 124), where quarterly indexations are in force, has already confirmed an increase of 0.8717% in April and is expected to apply raises of 1,02% in July, 0,19% in October and 0,40% in January 2027. What’s more, the recently signed sectoral agreement has introduced meal vouchers, abolished eco-vouchers and adjusted transport allowance as of 1 April 2026.
- The concrete sector (JC 106.02) is predicted to apply a fixed 2% index in May 2026.
- The metal sector (JC 111.1) indexes salaries each year in July: for July 2026 the predicted raise amounts to 2,69%.
- The food industry (JC 118) applies the index in January and the forecast for 01.2027 is 3,10%.
- The electrical sector – JC 149.01 – is forecast to apply a 3,05% index in January 2027.
- The general Joint Committee for white-collar workers nr 200 applies the index yearly in January and the predicted percentage for 01.2027 is 3,07%. The recent sectoral agreement has expanded certain types of leave of absence and modified transport allowance.
Please bear in mind, that these numbers are still unconfirmed. |
New system of overtime as of 1 April 2026 – more flexibility less administration
The relance overtime scheme expires on 31 March 2025. A draft bill is currently pending that aims to introduce a new system of 360 hours of voluntary overtime. This voluntary overtime would not require a specific reason, would not entitle the worker to compensatory rest, and would not count towards the internal overtime limit.
The new system would consist of 120 voluntary overtime hours with surcharge and 240 additional voluntary overtime hours – replacing the relance overtime – for which the gross pay is equal to the net pay and no surcharge is payable. However, make sure to verify whether, under the regulations of your country of origin, social security contributions and/or overtime surcharge must be calculated on these hours. Additionally, income tax is payable if overtime surcharge is required to be paid in accordance with the regulations of the home country.
The employee’s consent remains required, but this can be agreed for a period of twelve months and then automatically get renewed. |
Tax-advantaged overtime
Belgian law provides for a number of overhours, for which a partial exemption from withholding tax applies. The coalition agreement includes a structural increase from 130 to 180 hours of overtime, but this has not yet been definitively approved by the government. For the time being, only 130 hours of overtime can be processed with exemption in 2026, except in certain sectors such as the construction sector. Please note that for posted workers (not subject to Belgian social security), the withholding tax exemption on overtime can only be applied to the employee’s share. The employer’s exemption cannot be applied in this situation. |
Stricter Checks on Withholding Tax Exemptions
The 2025–2026 administrative guidelines tighten the application of various exemptions, including those for night and shift allowances, R&D, and overtime. Compliance and documentation requirements continue to increase.
Key Changes (as of Q2 2026):
- Shift work: Maximum deviation of 10% in shift size, to be assessed daily.
- Interpretation of “same work”: Stricter assessment of what qualifies as similar work between shifts.
- Payment controls: Ensure shift allowances are strictly allocated to actual shift workers.
- Overtime exemption: Applicable only to employees covered by social insurance in Belgium.
- R&D exemption: Projects must be reported to BELSPO in a timely and accurate manner. Copying old files is no longer sufficient.
- BELSPO files: Update with current project information and personnel changes.
Next steps: Van Havermaet can perform a short pre-audit for you (documentation, time tracking, overtime conditions) and apply for exemptions that have not yet been claimed, retroactively where possible. |
Future developments: 2027–2029
For completeness, please note that the above exemptions are expected to be subject to reduction (“correction factors”) starting from financial year 2027:
- 2027: Benefit reduced to 97% of its current value.
- 2028: Further reduction to 93,95%.
- 2029: Increase to 95,90% (still below the current full benefit).
These reductions will directly affect the financial advantage of the exemptions and should be considered in long-term budgeting and remuneration planning.
Next steps: Contact your Van Havermaet account manager to discuss proactive measures, conduct impact analyses, and make the necessary adjustments to ensure compliance and optimise your exemptions.
Suggestion: Keep an eye on our website over the coming months, where we will provide more detailed explanations of each exemption and its practical implications. |
Cross-border telework & A1
The EU framework permits telework of up to 49.9% in the country of residence, without a change in social security coverage, provided a formal A1 application is submitted.
What is crucial? List of actions for Q2.2026:
- Only telework is permitted — no client visits in the country of residence.
- No work in third countries, except on an occasional and unforeseeable basis (recent C‑743/23 (Moguntia) judgment).
- Plan timely A1 renewals.
- Update your teleworking policy with clear rules for client visits and business trips.
- Monitor remote working percentages (rolling 12 months).
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Advance payments of corporate tax
Advance payments of corporate tax are mandatory for foreign companies subject to the tax on non-residents carrying out business operations or companies that perform profit-making activities in Belgium
Those who do not make sufficient advance payments risk a tax increase.
For assessment year 2027 (income year 2026), this increase amounts to 6.75% of the tax liability.
To avoid this increase, companies can make advance payments, which grant a tax reduction per quarter: |
Stay ahead, plan your advance payments early to benefit from higher reductions and avoid unnecessary tax increases.
NSSO Modernization: Major Changes Ahead
The National Social Security Office (NSSO) is preparing for a substantial modernization of several key notifications and withholding systems, with changes expected to affect both Belgian and foreign employers operating in Belgium.
During a recent information session, we have learned that these updates will have a significant influence on works on immovable state. The enhancements will roll out over the next two years, with several milestone reforms:
- Consultation of both social and fiscal debts of self‑employed persons made possible as of May 2026.
- Declaration of Works (30bis) will in 2027 transform into “CATENA” with a modern look and feel and new functionalities – accessible exclusively through secure access.
- In 2027 Check‑In at Work (CIAW) will evolve into the Check‑In and Out (CIAO) platform, with real‑time check‑in and -out performed on-site by employees.
These reforms aim to enhance transparency, enforcement, and efficiency in digital administration. Employers are advised to prepare their processes, tools, and internal workflows well ahead of the implementation dates to ensure compliance and take advantage of the new functionalities. |
Tax returns via Van Havermaet
Van Havermaet can assist your employees with their 2025 individual tax returns.
Please provide the required documents by June 30, 2026.
If you have any questions please contact us before April 30, 2026.
This will ensure timely preparation and filing within legal deadlines.
Deadlines Q2
April
05.04 – NSSO Advance 3 – Q1.2026
10.04 – CIT prepayment Q1.2026
15.04 – Wage withholding tax 03.2026 and Q1.2026
20.04 – VAT (monthly) 03.2026
27.04 – VAT (quarterly) 01.2026
30.04 – NSSO contribution Q1.2026
30.04 – Construction fund contribution Q1.2026
May
05.05 – NSSO Advance 1 – Q2.2026
15.05 – Wage withholding tax 04.2026
20.05 – VAT (monthly) 04.2026
June
05.06 – NSSO Advance 2 – Q2.2026
15.06 – Wage withholding tax 05.2026
22.06 – VAT (monthly) 05.2026
30.06 – Metal fund contribution Q1.2026
End of June – Personal income tax return (BE resident) paper / Response to proposal for simplified return (paper) |
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