Your Payroll Administration Q3.2025

With the start of the third quarter of the year, we once again look ahead to the key changes that may impact your payroll administration and personnel policy.

Student labor: increase of the quota to 650 hours is confirmed

Good news for employers who regularly rely on student workers during the summer. Starting in 2025, the maximum number of hours a student may work per year under favorable conditions will be increased to 650 hours.

What does this mean for you as an employer?

• You can employ students for up to 650 hours per calendar year without having to pay social security contributions on their wages. However, a solidarity contribution of 8.13% is due on that wage (5.42% borne by the employer and 2.71% borne by the student).
• No withholding tax is applicable on these wages, as long as the basic conditions are met (timely Dimona declaration and valid student contract).
• Students may distribute these hours among multiple employers.
• The allowable income for students who want to remain fiscally dependent on their parents has also been increased from €1,500 to €3,000 for the assessment year 2026 and beyond.
• Student labor continues to be an attractive solution for managing peaks or temporary absences, especially during the summer months. Make sure that all administrative tasks are completed in a timely manner.

Supplementary pension for employees in the construction sector: take action before September 15, 2025

In light of the harmonization of supplementary pensions between blue-collar and white-collar workers, employers in the construction sector have been paying contributions for a sectoral supplementary pension for their employees through social security contributions since January 1, 2024. The pension contribution in the sectoral supplementary pension plan (“SAP”) amounts to 1.10% of the employee’s reference salary.

As of January 1, 2026, this sectoral supplementary pension plan will be further expanded with a solidarity component. As a result, the employer’s contribution will increase to 1.80%, and additional benefits will be accrued, such as pension accrual during certain absences (e.g., sickness and maternity leave) and interest in case of death.

However, if your company has its own supplementary pension plan that is at least equivalent to the sector plan, you can, as before, remain outside the scope – but you will need to take action again.

Employers who wish to remain outside the scope of the sectoral supplementary pension plan starting in 2026 must submit a declaration and an actuarial certificate to Constructiv by September 15, 2025, at the latest, demonstrating the equivalence of their own supplementary pension plan under the new conditions.

Those who do not submit these documents (on time) or cannot demonstrate equivalence will automatically fall under the sectoral system from January 1, 2026, and will have to pay the increased contributions. In that case, do not forget to discontinue your own supplementary pension plan to avoid double contributions. Model documents and more information can be found at www.pensiob.be.

Mobility allowance

In the upcoming quarter, multiple indexing adjustments will be implemented regarding mileage allowances. Starting July 1, the maximum mileage allowances will be indexed. These adjustments apply to business trips using a private vehicle. Additionally, the mobility allowance for travel time will also be indexed.

Mileage allowance for business trips with private vehicle

The amount of the mileage allowance has been indexed quarterly since October 1, 2022. In the third quarter of 2025, the maximum exempt amount for the mileage allowance for business trips will decrease slightly. From July 1 to September 30, this allowance will be €0.4309 per kilometer, compared to the previous amount of €0.4320.

Aside from this quarterly indexation, there is also an annually indexed mileage allowance. This mileage allowance will also see a slight decrease and will amount to €0.4309 per kilometer for the period from July 1, 2025, to June 30, 2026. As an employer, you can opt for this system, but you will not be able to revert back to the fixed quarterly system.

Mobility allowance for travel time

The mileage allowance covers the costs of the trip. Additionally, certain sectors, such as the Metal and Construction sectors, offer a mobility allowance that focuses on the time spent traveling rather than the costs. The maximum exempt amount for this mobility allowance has been €0.1929 per kilometer since July 1, 2024. We expect this amount to be adjusted, and we will keep you informed as soon as any changes occur.

End of the relance overtime

The current arrangement regarding relance overtime has been valid until June 30, 2025. Until that date, your employees could work a maximum of 120 regular voluntary overtime hours and 120 relance overtime hours, with a combined maximum of 220 overtime hours for both systems. A written confirmation from the employee is required for each instance of these overtime hours, which must be renewed every six months.

The government agreement includes plans to expand the system of voluntary overtime. The number of overtime hours without overtime pay would increase to 240, with the gross amount being equivalent to the net amount. This would bring the total maximum to 360 voluntary overtime hours per calendar year.

! Please note: the government agreement does not yet have legal binding power. The proposals must first be converted into legislation before they become binding. As of now, this is not the case for relance overtime.

However, a recent draft law was approved, which extends the existing arrangement regarding relance overtime until the end of this year. As a result, employees can use their allocation of 120 relance overtime hours until December 31, 2025 (unless, of course, this has already been exhausted).

Important: this draft law still needs to be voted on and published in the Belgian Official Gazette before the extension officially comes into effect. We will keep you informed as soon as this occurs.

Federal Learning Account: registration obligation postponed until September 1, 2025

The deadline for registering employee training in the Federal Learning Account (FLA) tool has been postponed again. Previously set for November 30, 2024, and later April 1, 2025, the new final date is now set for September 1, 2025. This postponement has been officially established in new legislation. The government agreement provides for the complete abolition of the FLA, which is to be replaced by a less burdensome system. The new Minister of Labor wishes for this abolition to be completed by September 2025 at the latest.

Note that this postponement does not mean that the training obligations for employers will be waived. Starting in 2024, employers must allocate a minimum of five training days per year to their employees. Additionally, companies with twenty or more employees are required to create an annual training plan, with a deadline of March 31. Information and reporting obligations will also remain in effect: employees receive individual information about their training rights, while employee representatives receive collective reports.

Flemish Training Leave (“VOV’): stricter rules starting September 1, 2025

Starting September 1, 2025, new, stricter conditions will apply to the Flemish Training Leave (VOV) in the private sector. Through the VOV, employees can take training leave while retaining their normal (capped) salary, while employers can reclaim part of this wage cost from the Flemish Region.

The new regulation stipulates that, starting from September 1, 2025, employees must work at least 80% of a full-time workweek, which previously was 50%, and an average of at least 28 hours per week. At the same time, the contribution that employers receive per training hour from the Flemish government will be reduced from €21.30 to €14.91.

Certain forms of training will no longer qualify for VOV starting on that date. This includes coaching of new colleagues, online training videos, lunch sessions, and peer review sessions. Furthermore, from September 1, 2025, it will no longer be permitted to combine multiple short training sessions to reach the minimum of 32 hours.

Pending a structural reform, the Flemish government is also extending the joint initiative right, allowing employers to propose training programs. This extension applies to the 2025-2026 school year. An employee who voluntarily participates in a training program and also accepts the employer’s proposal for another training program doubles their right to training leave and can take up to a maximum of 250 hours of Flemish training leave. When submitting a reimbursement request, it must be clearly indicated whether the training was initiated by the employee or the employer.

Important: These new rules stem from decisions made by the Flemish government but are not yet legally binding. They still need to be published in the Belgian Official Gazette after the consultation procedure is completed. Once the final rules are known, we will keep you informed.

Wage Indexations

At the start of the third quarter of 2025, an indexation of 0.87056% was applied in the Construction Sector (JC 124).

Furthermore, a yearly indexation of 2.72% in the Metal Sector (specifically for joint committees 111 and 209) has taken place on July 1, 2025.

We continue monitoring all the sociolegal developments and keep you informed of any adjustments.