“First hires” target-group reduction: new amounts (1 July 2026)

“First hires” target-group reduction 

Under the “first hires” target-group reduction scheme, employers can benefit from a reduction in NSSO contributions for the first employees hired by the company. 

For the 1st employee, the reduction is unlimited in time. For the 2nd to 5th employee inclusive, the reduction is limited in time. It is also subject to a number of specific conditions, which we will not discuss in further detail here. 

The purpose of this scheme is therefore to encourage companies to hire staff. 

This scheme has existed since 2014 and has been reformed several times. 

In this article, we focus on the changes in force since 1 July 2026.

Recent changes 

Since 1 July 2026, the following reductions apply: 

• 1st employee: EUR 2,000 per quarter, for each quarter, throughout the entire period of employment; 
• 2nd to 5th employee: EUR 1,000 per quarter, for a maximum of 12 quarters, to be counted within a period of 20 quarters starting from the quarter in which the 2nd, 3rd, 4th and 5th employee respectively enters employment. 

As a result of this reform: 

• The reduction for the 1st employee is reduced, from EUR 3,100 per quarter to EUR 2,000 per quarter; 
• A reduction is once again available for the 4th and 5th employee (this reduction had been abolished in 2024); 
• There is no longer a degressive reduction for the 2nd and 3rd employee (and therefore also for the 4th and 5th), but a harmonised and simpler system now applies. 

Transitional measures 

• 1st employee: the new amount of EUR 2,000 applies immediately, including to existing situations; 
• 2nd to 3rd employee: where entitlement arose before 1 July 2026, the previous applicable scheme continues to apply until the relevant reduction expires; 
• 4th to 5th employee: the reduction applies only to new hires from 1 July 2026 onwards. 

Takeaway 

This reform means that first hires will generally become more costly, as the amounts of the reductions are decreasing. However, for companies hiring a 4th and 5th employee, the impact is mitigated because they once again benefit from a reduction for these hires. 

Source: Royal Decree of 30 June 2026 amending the Royal Decree of 16 May 2003 implementing Chapter 7 of Title IV of the Programme Act of 24 December 2002 (I), aimed at harmonising and simplifying the schemes for reductions in social security contributions, Belgian Official Gazette, 7 July 2026.