Federal parliament passes Arizona government's first program Act

On July 18, 2025, the federal parliament definitively adopted the program Act. The Moniteur Belge – Belgisch Staatsblad published this Act in its July 29, 2025 edition.

This Act provides, among other things, for the right to unemployment benefits after resignation, parental leave, and the extension of voluntary overtime for economic recovery.

Context 

In our news of June 11, we presented the main new measures contained in a program bill that will have an impact on employers in the private sector. 

On July 18, 2025, the federal parliament definitively adopted this first program bill of the Arizona government. The Moniteur Belge – Belgisch Staatsblad published this Act in its July 29, 2025 edition. 

The legislator has not fundamentally changed the provisions contained in the government's program bill. The program Act provides for: 

• Exemption from employer social security contributions above a quarterly remuneration ceiling; 
• Extension of the period between the pivot index being exceeded and the automatic indexation of social benefits; 
• The possibility for workers to resign and receive unemployment benefits once during their professional career; 
• Parental leave for parents who take in a child placed in their care by court order; and 
• The option for self-employed workers who have reached the legal retirement age, who continue to work and have an income of less than EUR 17,008.88 to choose to pay the same social security contributions as a self-employed worker in their main occupation in order to build up additional pension rights. 

New provisions introduced by amendments

The Program Act extends several tax benefit schemes, including: 

• The tax reduction on remuneration for 180 hours of overtime is extended until December 31, 2025. The tax benefit will therefore not disappear on June 30, 2025. Employers are exempt from paying withholding tax in this context. 
• Similarly, the voluntary overtime scheme to boost the economy—which increases the ceiling for voluntary overtime by 120 hours and provides tax and social security exemptions—was also due to end on June 30, 2025. However, the federal government is considering permanently increasing the ceilings for voluntary overtime. Pending legislative changes, the program Act extends the voluntary overtime scheme to boost the economy until December 31, 2025. However, the federal government has yet to adopt a decree extending the social security contribution exemptions. 

Source: Program Act (1) of July 18, 2025, M.B. / B.S. of July 29, 2025, p. 63555