Fewer social and tax benefits for newcomers

Because newcomers can too easily enjoy generous social protection in Belgium without having contributed in any way, the Belgian government wishes to limit the social and tax benefits for this group further. “We must guard the borders of our Social security Social security is currently managed at the Federal level in Belgium. The most important pillars of Belgian social security are: sickness and invalidity insurance (NIDHI), pensions, unemployment insurance and child allowances. In addition, occupational illness, occupational accidents and annual holidays are dealt with at this level. Some Flemish parties have been campaigning for years for (large parts of) social security to be transferred to the Regions and Communities. social security and the scarce budgetary resources,” says Minister of Finance Johan Van Overtveldt. “Therefore we now are linking tax and social benefits to the duration of stay and employment.” The new measures are intended to yield EUR 75 million to our treasury on an annual basis starting from 2018.

Even those who have only lived in this country for a couple of months currently benefit from all sorts of tax benefits: from tax credit for dependent children to tax deductions for pension savings or a mortgage. The government is putting the brakes on this now. For example, deductions within personal tax can only be applied to the months during which the newcomer was already actually living in Belgium. So people who only arrived here halfway through the year for instance can only enjoy only half of that year’s tax deductions. And only half of the fixed amount of professional expenses may be deducted from the income. Furthermore, people leaving the country will also only partially benefit from our tax benefits. “So there is no question of any discrimination,” says Johan Van Overtveldt. “Especially when you know that this measure applies to all newcomers, no matter where they come from or what their status is.” Last month, the minister took a similar measure specifically aimed at asylum seekers.

Unemployment benefit

Newcomers will also not be granted unemployment benefit so easily. “In the past, having worked in Belgium for a single day was enough to be entitled to unemployment benefit, based on work done abroad,” says Johan Van Overtveldt. “However, as from October, people must have worked here for at least three months. And now we want to double that period: people who have not worked here for at least six months are not entitled to unemployment benefit.”

In the past, newcomers from a great many countries, as well as people with official refugee status, were entitled to unemployment benefit in Belgium provided they could prove they had been employed in that other country. But as from this month, that rule only applies to the countries of the European Union and a number of the EU’s neighbours, for example Turkey. Finally, Europeans - who are allowed to take their work abroad into account - are also expected to have worked in Belgium for at least six months. “Our society stands for rights as well as obligations,” says Minister Johan van Overtveldt. “With this new package of measures, we achieve a better balance between the two.”