You are here
Government reforms labour market and social security
The government has approved the Workable and Agile Work (Werkbaar en Wendbaar Werk) law and thoroughly reformed the 1996 law on wage norms, along with financing of . “In that way it demonstrates a commitment to a modern and competitive labour market,” the N-VA states. “At the same time, it increases accountability in the social security system.”
“This majority allows our labour market to adapt to the needs of the 21st century, without threatening the average 38-hour working week,” the N-VA explains. This means the Workable and Agile Work Law has provided a legal framework for flexible working hours and working from home or teleworking, to include during strikes. In addition, the law simplifies the rules about part-time work. “Through these reforms we guarantee an increase in flexibility for employer as well as employee, without the administrative red tape that used to be involved in the past,” the N-VA remarks.
Wage cost: avoiding further derailment
The wage norms law of 1996 is twenty years old and is now being thoroughly reformed. As a result of theand wage indexation, within a mere two years’ time (2015-2016), the government has fully eliminated the that had accumulated since 1996. “With these reforms we prevent wage costs from derailing anew,” the N-VA states. “We create a safety margin of at least 0.5% per inter-professional agreement. And tax cuts effected in the tax shift are applied to reduce the historic wage handicap. In that way we boost and job creation for our companies, both large and small.”
Social contract: no more passing the financial buck
The N-VA is also quite pleased with the reform of social security financing. It means that for social contracts involving fiscal impact, social partners are first asked whether alternative cuts are possible. “This puts an end to the tradition in which social contracts entail costs that are passed on to the taxpayer via a makeshift third-party payer system. In future, social partners will be made accountable for reducing the social security budget deficit. Moreover, at the same time, we increase democratic control of alternative financing of social security through tax income,” the N-VA concludes.