What’s new at work from January 1?

Those with a company car that they can also use for private ends will find themselves paying more tax. The increase in taxation will come about as a result of the annual changes to the way in which standard carbon emission are used to calculate how much a company car that can be used for non-work-related journeys.

Tax levels on electrically-powered and hybrid vehicles will remain unchanged as will the amount payable on vehicles with very high carbon emissions.

Social security contributions payable by employers on the first three people they employ will fall by 50 euro/trimester from 1 January 2015. The measure applies both to employers that already enjoy a reduction in social security contributions as they employ people from so-called “target groups” such as the disabled and those taking on staff for the first time.

The amount automatically set off against tax as expenses (for those not having provided an exhaustive list of their work-related expenses with their tax return) is also being increase. This will result in employees seeing their next income rise to the tune of around 12.5 euro/month from January 2015 and 25 euro/month from January 2016.

The system of so-call “time credit” is to be restricted. The National Labour Office will no longer pay out benefits to people that have taken “time credit” without a valid reason. However, those wishing to take “time credit” leave to look after someone else such as a sick of handicapped family member will be entitled to time credit benefit for 48 months instead of the current 36 months.

The age at which older employees can reduce the number of hours/days they work each work ahead of retirement will be raised from 55 to 60 from 1 January. Only those in physically-challenging job (e.g. in heavy industry) or in the case of corporate restructuring (as seen recently with the close of the Ford factory in Genk) will people still be able to benefit from the system from 55.

The federal coalition agreement contains a host of measures related to unemployment benefits and the rights of those that are out of work.

• Those that have been laid off temporarily will see the unemployment benefit reduced to 65% of their last wage. If their last monthly wage was more than 2,466.59 euro they will receive 65% of 2,466.59 euro. Up until now they got 70%.
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• In future an upper age limit of 25 will apply to the benefit given to school-leavers looking for their first job. From next September (once consultations with the three language community authorities have been completed) the benefit will be conditional on the recipient having qualifications.

• Exemptions for social or family reasons to the conditions regarding availability to work imposed by the National Labour Office will be scrapped from midnight.

• This also applies to older unemployed people and those having taken early retirement with the exception of those that had reached the aged of 60 by 31 December 2014.

• From 1 January 2015 people over 65 that have been laid off will be entitled to unemployment benefit. Previously this was not the case as anyone over 65 was considered to be retired and not entitled to any unemployment benefit.