Prerequisite for the release of funds from the EU Reconstruction Fund.

The Belgian pension reform came into force on 1 January. Belgium is thus complying with the European Commission's request to improve the financial and social sustainability of the pension system. The European Commission had linked the release of 300 million euros from the EU Reconstruction Fund with the fulfilment of this requirement.

The reform aims to reduce pension expenditure as a proportion of gross domestic product by 0.5 percentage points by 2070, increase employment beyond the standard retirement age and provide better protection for women.

Access to the minimum pension – better protection for women

As part of the pension reform of July 2022, the conditions for drawing the minimum pension were tightened. In addition to 30 qualifying years, 20 years of employment (effective career) will in future be a prerequisite for drawing a minimum pension.

The number of years of service required will be gradually increased. All those who were 61 or older when the reform came into force do not have to show any years of service. The requirement of younger cohorts is gradually increased. The full 20 years apply to insured persons who are aged 53 or below at that time.

This increase in eligibility requirements is primarily at the expense of women. Their periods of employment are generally shorter and have more frequent interruptions. With the reform, more periods of caring and family life are now counted as periods of effective career. Even short periods of unemployment are now counted as periods of effective career. In this context, the Belgian Minister for Pensions and Social Inclusion, Karine Lalieux, emphasises the overarching goal of reducing the gender pension gap through adjustments within the pension system.

The current rule remains valid that a full contribution period of 45 years under Belgian law is required to receive the current full minimum pension of EUR 1,619. If someone has worked for 30 years, the entitlement is reduced accordingly to two thirds of this amount.

Return of the pension bonus

The pension bonus, which was abolished under the government of the current President of the European Council, Charles Michel, will be reintroduced on 1 January 2025. Insured persons who fulfil the requirements for early retirement are to be given an incentive to work longer. The bonus is aimed at insured persons who have been insured for a full 42 years and can therefore go into retirement without deductions. When they retire later, they can not only build up further pension entitlements, but also receive a pension bonus. This increases gradually over a period of three years to 22,645 euros net and can also be paid out as a one-off payment. 

Reduction for civil servants and doubling of the Wijninckx contribution

While the pensions of employees and the self-employed are price-indexed in Belgium, civil servants' pensions were adjusted in line with the salary development of active civil servants. From now on, this adjustment will be a maximum of 0.3 percentage points above the price indexation of pensions.

The Wijninckx contribution, a solidarity contribution to social insurance on high employer contributions to supplementary pension schemes, will also be increased. As part of the reform, this has risen from three to six per cent.

Further reform steps planned

The reforms for a social and financially sustainable pension system are to continue. To this end, the government had asked the social partners to develop joint proposals by the end of last year. However, the social partners have indicated that these will not be available before the end of the legislative period in June.