Subsidy on employer costs for first hires in Belgium: target group reduction of employer social security contributions

Lower employer costs for your first employees in Belgium

Are you a foreign employer planning to hire staff in Belgium? If so, you may be eligible for a federal measure that reduces employer costs: the target group reduction for first hires.

On this page, we explain how the scheme works.

The target group reduction scheme for first hires is regularly amended by the Belgian legislator. As a result, both the eligibility conditions and the level of the benefit may change over time. In this article, we explain the purpose and general operation of the scheme.

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What does the target group reduction involve?

The target group reduction for first hires is intended to support employers when hiring their first employees in Belgium. It is a federal scheme that applies throughout Belgium and is also available to foreign employers with employees in Belgium, whether or not they have a Belgian establishment.

The scheme reduces the employer’s social security contributions payable to the Belgian National Social Security Office (Rijksdienst voor Sociale Zekerheid, RSZ) and therefore has a direct impact on labour costs. If you outsource your Belgian payroll to Interfisc and we are confident that you qualify for this reduction, we will apply it automatically in your payroll.

Why is this interesting for foreign employers?

In Belgium, employers generally pay around 26% in employer social security contributions to the Belgian National Social Security Office (Rijksdienst voor Sociale Zekerheid, RSZ), with no upper limit. The target group reduction effectively works as a subsidy on employer costs, making your market entry into Belgium significantly more affordable.

How much is the reduction?

The target group reduction lowers employer social security contributions for employers hiring staff in Belgium. The level of the benefit depends on several factors, including the employee’s contract of employment and the legislation applicable at the time of recruitment.

The Belgian legislator regularly amends the scheme. As a result, both the eligibility conditions and the amount of the reduction may change. Overall, the target group reduction represents a substantial saving on labour costs for many employers. To give an indication, in July 2026 the reduction for a first employee can amount to up to €2,000 per quarter, without a time limit.

Would you like to know which benefit your company may currently be entitled to? If so, please contact Interfisc or consult the applicable regulations.

Who is eligible for the scheme?

The target group reduction applies, among others, to:

Belgian and foreign employers;
companies hiring staff in Belgium for the first time;
employers with no previous employment history in Belgium.

The reduction is processed through the employer’s social security return submitted to the Belgian National Social Security Office (Rijksdienst voor Sociale Zekerheid, RSZ).

Automatic application via Interfisc

If you outsource your Belgian payroll administration to Interfisc, we will in principle ensure that the reductions are applied automatically in your payroll, unless further review is required. Please also note that reductions granted earlier may in some cases be reclaimed by the Belgian National Social Security Office (Rijksdienst voor Sociale Zekerheid, RSZ) if it later appears that not all conditions were met.

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Since 1972, Interfisc has offered international HR & Payroll solutions in the Netherlands, Belgium, Germany, France, the United Kingdom, and Italy. We do this from our offices in the Netherlands and Belgium, and with an international team of around 45 committed and caring employees.

Thorough knowledge of local rules on employment law, social security, taxes, employee benefits and health & safety
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Expert in cross border payroll solutions since 1972
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