Modifications Concerning Activation Contributions - Increase In Rates And Stricter Conditions

• Published date: 29 January 2024
• Subject Matter: Employment and HR, Employee Rights/ Labour Relations
• Law Firm: Claeys & Engels
• Author: Claeys & Engels

As of 1 January 2024, the legislation regarding activation contributions, aimed at discouraging employers from fully exempting employees from benefits, has been tightened. The Program Act of 22 December 2023 significantly increased the rates and imposed stricter conditions. Notably, no transitional measures were introduced, applying the new conditions to both new and pre-existing cases of garden leave.

The Program Act of 22 December 2023, amended and tightened the legislation on activation contributions.

Increase in rates

Starting 1 January 2024, activation contributions will be increased as follows:

Age at start of exemption	Percentage of salary in 2023	Percentage of salary in 2024	Quarterly minimum (EUR)
	20%	50%	EUR 300
≥ 60 years	15%	45%	EUR 225.60
≥ 62 years	10%	40%	EUR 225.60

Tightening of conditions

The requirement for an activation contribution, previously applicable when an employee has not delivered any performance for an entire quarter with the same employer, is expanded to encompass performance equivalent to less than one-third of the weekly working time of full-time employees in the same category within the company.

As a result, starting 1 January 2024, if an employee is employed for less than one third of a full-time work schedule in a calendar quarter, an activation contribution will be applicable.

Adjusting contribution reduction

In the previous regulatory framework, a 40% reduction in contributions applied when an employee had to participate in mandatory training organised by the employer for a minimum of 15 days over four consecutive quarters.

From 1 January 2024, this mandatory training will be replaced by the requirement to undergo outplacement guidance totalling 60 hours during the initial four quarters. This guidance is equivalent to 1/12th of the annual remuneration of the calendar year preceding the garden leave, with a minimum...