With the aim of increasing Belgium’s competitiveness, the Programme Act of 18 July 2025 introduced a new cap for employer’s social security contributions. From 1 July 2025, no standard employer contributions are due on the portion of the base salary that exceeds a specified quarterly threshold. A Royal Decree of 6 October 2025 has now formally set that quarterly base salary threshold at EUR 85,000 and clarified which salary components are included in the notion of ‘base salary'.
Cap on standard employer’s social security contributions
For the first time since 1982, employer’s contributions are not due on the full, uncapped salary of an employee. From 1 July 2025, no standard employer’s social security contributions are payable on an employee’s base salary to the extent it exceeds the quarterly threshold of EUR 85,000.
It’s important to note that this cap only concerns the employer’s contributions; employee contributions remain due on the full, uncapped salary. In addition, the cap applies solely to the standard employer’s social security contributions. Specific contributions, such as those payable for a sectoral subsistence fund, or contributions tied to specific elements like employer’s contributions to a second-pillar pension plan, are unaffected.
The quarterly salary threshold
The recently adopted Royal Decree also specifies which salary elements must be taken into account when determining whether the EUR 85,000 quarterly threshold is met. Only salary elements directly related to work performed during the quarter in question are included. These include the regular monthly salary, overtime pay, single holiday pay for white-collar workers, guaranteed pay, etc.
Salary elements that don’t fit this definition are excluded from the threshold calculation and moreover remain fully subject to employer’s social security contributions. These include, for example, the year-end premium and an annual performance bonus.
Conclusion
The Royal Decree of 6 October 2025 provides the final legislative piece of the puzzle for implementing the new cap on employer’s social security contributions as of 1 July; just in time, as the social security reporting for the third quarter of 2025 is almost due. Companies should, together with their payroll provider and taking into account which salary elements can be included, assess to what extent the new cap applies to their high-earning employees.
