Reform of Plus Plans from January 1st 2022: regulations put in place

Reform of Plus Plans from 1 January 2022: regulations put in place

SD Worx Knowledge Centre

Source

The Royal Decree of 27 January 2022 amending the Royal Decree of 16 May 2003 implementing Chapter 7 of Title IV of the framework law of 24 December 2002 (I), on harmonising and simplifying the regulations concerning reductions in social security contributions, p. 9795.

From 1 January 2022, new rules apply to the target group reduction for first recruitments. The changes are the result of an evaluation of the system of this target group reduction.

However, there was still no implementing decree. This was announced on 10 February. The legislation has now been fully amended.

New principles

Let's recap the new principles we need to follow from 1 January 2022:

• The target group reduction for the first employee is no longer an unlimited exemption from social security contributions in terms of the amount

It is now also a (limited) flat-rate reduction of maximum €4,000 per quarter for full quarterly performance. However, the reduction is unlimited in time. This applies to each target group reduction for the first employee from 1 January 2022, even if the employer has opened the right to the reduction before 1 January 2022. However, there is no retroactive application.

• All occasional workers and flexi-job workers are completely excluded from the system (for the count, the opening of the right, the application of the reduction)

• The existing calculation method for determining whether an employee who is newly employed is a replacement for a person who was previously employed in the technical business entity (TBU) is now laid down in the decree

• A new tolerance rule applies to that calculation method

A maximum of five effective days (with the highest employment) are not taken into account when assessing the maximum simultaneous employment in the TBU in the reference period. For example, we disregard accidental or exceptional employment when checking replacements in the TBU.

• The same employer (legal entity) may only apply the reductions for the first to sixth employee once

This new rule is aimed at the situation of the continuation of a target group reduction opened elsewhere (in the case of restructuring or legal change of the employer). From 2022, in the event that several first or nth reductions were applied for one employer (legal entity), the employer concerned will have to choose.

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A divergence is provided from this principle in the event of replacement in the same quarter.

• The same reduction is possible for employees who are replacements within the same quarter, provided that they are not employed simultaneously at any time

Until the end of 2021, the departure of a first and only employee in the course of a quarter, followed by the commencement of employment of a second employee in the course of the same quarter, led to the start of the 'reduction of second recruitment'. This is no longer the case. You can now continue the 'reduction of first recruitment'.

• If an employer is part of a simultaneous TBU, an analogous principle applies: the reductions for first to sixth employees may only be applied once within that TBU

This provision does not apply to reductions already started before 1 January 2022 for simultaneous TBUs (which existed at that time).

• For the opening of the right to a reduction and the application of a reduction, there must be sufficient 'simultaneous employment'

The decision stipulates that the reduction can only be applied for an n-th employee if there are n employees simultaneously in service during the course of the quarter.

• The 'additional employment in a TBU' must continue at least one month after the date of commencement of employment

• For the grade of the reductions, we must look at the number of employees previously employed by the employer or the TBU (new conditions under the definitions of 'new employer' in the law).

A difference is made in the count depending on whether new employees join a company that is part of a simultaneous or historical TBU.

In the case of a simultaneous TBU, no right to a target group reduction can arise for first recruitments as soon as there are at least six employees in total employed within the TBU. Before 2022, additional employment within the TBU was sufficient to open a right.

If an enterprise is the result of a restructuring operation, the newly hired employee who constitutes additional employment can only take the grade into account for the application of the reduction, taking into account the employees who have been taken over from the pre-existing entity or entities.

The additional employees are now considered to be 'last employed'. Until now, they were the 'first' to be employed.

Entry into force

The new rules will enter into force on 1 January 2022. No transitional arrangement is provided.

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The right to the target group reduction for first recruitments that was opened before 1 January 2022 has been retained due to recruitment that would no longer be eligible under the new rules.

Consequences for the employer

Current target group reductions

Employers who already make use of a 'first hire' target group reduction may continue to apply this benefit for an unspecified duration starting from the first quarter of 2022. However, the amount of the reduction may decrease (fixed amount capped at €4,000 per quarter in the case of full quarterly performance).

The impact is mainly on high pay levels.

The target group reductions for the second to sixth recruits remain unchanged.

As of 1 January 2022, the opening of a new entitlement to a target group reduction for an nth employee and its application will be linked to stricter conditions. The new principles apply to new recruits.

New target group reductions

New employers who meet all the allocation conditions applicable from 1 January 2022 can claim a target group reduction for a maximum of six employees.

The employer's target group reductions can be applied immediately to an employee of your choice in the payroll calculation, provided that all conditions are met.

From 1 January 2022, the benefit for a first hire is capped at €4,000 per quarter in the case of full quarterly performance. The target group reduction applies indefinitely.

The target group reductions for the second to sixth recruits remain unchanged.

However, claiming the right to a target group reduction for the second to sixth recruits and the application of this are subject to stricter conditions from 1 January 2022.

Clients of SD Worx

The adjusted calculation of the target group reduction for the first employee will be made automatically in the payroll calculations. Employers do not need to take any action in this respect. SD Worx will update its programming as soon as possible.

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Index

A

Annual holidays: Annual report: Mar 44

B

Benefits: Benefits in kind: Mar 25 Bicycle: Business trips: Mar 29

C

Carer's leave: CLA No. 90: Mar 6 CO2 emissions: Jan 41 Corona premium: Jan 2 Commuting: Feb 28, Mar 24 Company cars: Company closure fund: Feb 24

D

Discrimination: 21

E

Eco-vouchers: Jan 27 Educational leave: Feb 30 Employment plan: Mar 42

F

Final employment: Flemish incentive bonus:

I

Innovation premium: IPA: Jan 11

G

GDPR:

J

Job bonus: Mar 36

K

Key index: Jan 3 and 4, Mar 4

L

Labour Deal: Mar 10 Long-term illness: Feb 5

M

Meal vouchers: Mobility: Mobility budget: Mobility survey: Feb 16

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N

Night work: Notice periods: NSSO: Mar 34

O

Occupational disease: Jan 50 Office allowance: Jan 46 Overtime: Mar 5

P

Personal income tax: Phoenix.Brussels: Feb 33 Programme Act: Jan 14

R

Reimbursement of expenses: Reimbursed expenses: Reintegration of long-term sick employees: Jan 21 and 25 Retirement pension:

S

Sickness and Disability Insurance benefit: Social inspectorate: Sport and cultural vouchers: Jan 55 Storm: Mar 23 Students:

T

Target group reductions: Mar 45 Teleworking: Jan 5, Feb 2 and 22 Test policy: Jan 8

U

Unemployment with an additional company allowance (RCC/SWT) Unemployment: Jan 30

V

Vaccination leave: Jan 39

W

Withholding tax: Feb 7, 10 and 20, Mar 15 Working hours: Wage garnishment: Jan 44

Z

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