Activation contribution increased as of 1 January 2024
29 Jan 2024
Effective 1 January 2024, both the scope and the percentages of the activation contribution – which is due when a company exempts an employee from performing their work, while retaining (part of) their salary – were modified.
The activation contribution was first introduced in 2018 as a dissuasive measure to counter a growing tendency of exempting employees from work to circumvent the stricter conditions of the system of unemployment benefits with company allowance (‘SWT’/’RCC’, previously known as ‘bridging pension’). The contribution is due for every full quarter the employee is exempt from work and amounts to a percentage of the employee’s gross quarterly salary. The contribution is not applicable when an employee is exempt from work during the notice period or when the employee’s employment agreement is suspended on statutory grounds (e.g. due to illness, vacation, maternity leave, temporary unemployment, etc.).
Up until 1 January 2024, the activation contribution was only due when the employee was fully exempt from work. As of this date, however, the contribution is also due when the employee is partially exempt from work and their remaining work regime amounts to less than 1/3d of a full-time employment for a similar position.
Next to this change in the scope of application of the activation contribution, the amount of the contribution was significantly increased. We summarised the increase in percentages, which must be calculated on the employee’s gross quarterly salary, in the following table:
| Age at the start of the exemption from work | Regular activation contribution 2023 | Regular activation contribution as of 1 January 2024 | Increased activation contribution (+25%*) as of 1 January 2024 |
|---|---|---|---|
| < 60 years old | 20% min. EUR 300 |
50% min. EUR 300 |
62.50% min. EUR 375 |
| ≥ 60 and < 62 years old | 15% min. EUR 225.60 |
45% min. EUR 225.60 |
56.25% min. EUR 282 |
| ≥ 62 years old | 10% min. EUR 255.60 |
40% min. EUR 225.60 |
50% min. EUR 282 |
*This increased contribution, of which the percentage remains the same, is due if the employer had to pay the activation contribution for at least 10% of its employees.
Another modification relates to the possibility to have the activation contribution reduced by 40%. Up until 1 January 2024, this reduced contribution was applicable when the employee attended mandatory training, provided by the employer, during the first four quarters of exemption from work. As of 1 January 2024, however, the reduced contribution is instead applicable when the employee is required to follow a qualitative outplacement programme of at least 60 hours during the first four quarters of exemption from work. Moreover, as of this date, the employer is exempt from paying the activation contribution altogether if the employee attends mandatory training, provided by the employer, of which the total amount equals at least 20% of the employee’s gross yearly salary prior to their exemption from work.
Please note that these modifications were not accompanied by any transitional measures, meaning that e.g. the increased percentages will in principle also apply to existing situations of exemption from work.
If you have any questions regarding the above or are confronted with a specific case in this respect that requires assistance, don’t hesitate to reach out: we’d love to hear from you!
