Flemish employment bonus to disappear if Federal Government lowers taxes

Flemish employment bonus to disappear if Federal Government lowers taxes
The Belgian and Flemish flags pictured at the Tour of Flanders on 31 March 2024. Credit: Belga / Tom Goyvaerts

The three parties currently negotiating the formation of the next Flemish Government (N-VA, Vooruit and CD&V) have agreed to abolish the Flemish employment bonus.

The bonus can climb to €650 per year for the lowest salaries. However, sources told Belga News Agency that it will only be eliminated if there is a significant reduction in federal charges.

The employment bonus was a key initiative of Jan Jambon's outgoing government, championed by the Flemish liberal party Open VLD. It aimed to provide an annual bonus of €650 to those earning less than €3,000 gross.

Last year, nearly a million Flemish workers received this bonus, designed to make work more rewarding.

Several sources have confirmed to Belga that the new majority plans to scrap this measure. However, the abolition depends on a substantial federal tax cut.

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