Days of temporary unemployment due to force majeure resulting from the COVID-19 pandemic are now taken into account for the calculation of holiday entitlement in Belgium. It must thus be shown that there is a valid reason for the frontier worker to be entitled to a temporary unemployment benefit, e.g. If necessary, the National employment office RVA/ONEM (= NEO) will reclaim the overpayments. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. What is the amount of the temporary unemployment benefit? There is no relaxation as to the income limits; they still need to be observed. This means that the exact amount of the temporary unemployment benefit would be calculated later on. Temporary unemployment in case of school closure ... With regards to implementation, the trade unions traditionally play an important role in the payments of unemployment benefits (Belgium having a quasi-Ghent system). Temporary unemployment due to force majeure. Belgium: Temporary Unemployment Benefits Supplements In Belgium. No, self-employed persons cannot be entitled to temporary unemployment benefits. During this period, employees will receive unemployment benefits paid by the Belgian state and will in principle no longer receive any salary from the employer. Artists have a special unemployment system, with benefits that are less rapidly reduced if they can prove three performances in the last 12 months. compensation of public employees[AG2] and the purchase of goods and services – unchanged from its … Such a financial shock can be partly absorbed by the system of temporary unemployment. Can self-employed persons be entitled to temporary unemployment benefits? In Belgium, two types of temporary unemployment exist for companies that can no longer put their employees to work or maintain their employees’ normal working schedules: temporary unemployment due to force majeure and temporary unemployment for economic reasons. The employer who wants to rely on temporary unemployment benefits must submit an electronic application, called the ASR 5/DRS 5, to the local office of the RVA/ONEM. To be entitled to temporary unemployment benefits for economic reasons, since 1 October 2016 the workers must fulfil the ordinary eligibility … This supplement will be paid by the RVA/ONEM. In this particular case, the complementary activity does not need to be declared to the RVA/ONEM and certain conditions concerning the time of day and the kind of the activity do not need to be fulfilled. The amount of the temporary unemployment benefit is increased to 70 % (instead of 65 %) of the last monthly salary (with a maximum of 2754.76 EUR). Both regimes have their own administrative formalities and some form of motivated request had be introduced to benefit from either regime. The benefits which you may enjoy as a foreigner are strictly dependent on the conditions under which you are resident on Belgian soil. From 13.03.2020 until 31.08.2020, a very simple form of temporary unemployment due to force majeure “corona” (hereinafter: “corona unemployment) was introduced. In case the unemployed employee would have been entitled to a lower temporary unemployment benefit, the excess amount would be recovered later on. No. The benefits for temporary unemployment - both for economic reasons and force majeure - will be increased from 65 percent to 70 … Review our cookie policy for more information. Please note: The ILO unemployment figures are unrelated to any possible registration with the VDAB, Actiris, FOREM or the ADG, or to the receipt of unemployment benefits from ONEM (National Employment Office). for economic reasons. A withholding tax on the professional income of 26.75% is deducted from the benefit. Employees who want to receive unemployment benefits must have their domicile in Belgium. EY | Assurance | Consulting | Strategy and Transactions | Tax. © 2020 EYGM Limited. Per day that a person is unemployed, the benefits amount to a minimum of €55.59 and a maximum of €74.17. A temporary unemployment benefit must be taken for the whole day. Who is eligible to receive unemployment benefits, who is not, and how much money do they get? The government has changed its mind about dismantling the special system of temporary unemployment from September 1, federal labour minister Nathalie Muylle (CD&V) told parliament on Tuesday. For more information, click here. There are two types of temporary unemployment: The employer must also declare the employee concerned through a DIMONA application. However, we have received an oral confirmation from the RVA/ONEM that this condition can be waived in practice and that temporary unemployment benefits can be paid to e.g. Does the employer have the obligation to take other measures before he can make use of the temporary unemployment regime? The unemployment benefit is increased with a daily allowance of EUR 5.63 for each day of temporary unemployment. The amount of the temporary unemployment benefit is increased to 70 % (instead of 65 %) of the last monthly salary (with a maximum of 2754.76 EUR). The general application of the flexible COVID-19 temporary unemployment scheme (a form of temporary unemployment due to force majeure) will come to an end on 31 August 2020, but will nevertheless continue to apply (from 1 September until 31 December 2020) to certain companies and sectors … Due to the coronavirus outbreak, the Belgian population and the Belgian companies are confronted with various precautionary measures implemented by the Belgian Government. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. EY | Assurance | Consulting | Strategy and Transactions | Tax. They must have worked for a certain number of days within a given period and be able and available for work. As to the reason for the temporary unemployment benefits, the employer only has to mention “Coronavirus”. People who perform volunteer work can receive a reimbursement for the costs they actually made costs or an amount of maximum 34.71 EUR a day with a total maximum of 1388.40 EUR a year. A professional withholding tax of 26.75 % will be applied to the unemployment benefit. The examples provided by the administration related to “force majeure” have also been broadened vastly to include “companies which (partially) close because they do not have teleworking tasks for (all) their workers and who cannot respect the social distancing measures in the exercise of work and in the transport which they organize (for example, construction companies).” Are also included Belgian companies that have to stop their production process and can thus no longer employ their employees because some of their suppliers do not supply any more. However, we have received a written confirmation of the RVA/ONEM that a supplement paid by the employer on top of a temporary unemployment benefit can be combined with a temporary unemployment benefit, provided that no social security contributions are due on the supplement (see below). Unemployment benefits in Belgium are subject to complicated requirements and restrictions, depending on your age, work experience and family situation. Report Save. Belgium has a very extensive social security system. Foreign employees whose Single Permit has been refused are thus not entitled to temporary unemployment benefits. The examples provided by the administration related to “force majeure” have also been broadened vastly to include “companies which (partially) close because they do not have teleworking tasks for (all) their workers and who cannot respect the social distancing measures in the exercise of work and in the transport which they organize (for example, construction companies).” Are also included Belgian companies that have to stop their production process and can thus no longer employ their employees because some of their suppliers do not supply any more. An employee who needs to stay at home to care for his/her children will in principle not be entitled to temporary unemployment benefits, unless he/she could clearly prove there is no day care available (because the school is not materially able to provide so) and there is not an alternative (no remote work, no other help except … Belgium April 15 2020 By Claeys & Engels With effect as of 13 March 2020, the regime of temporary unemployment due to … However, the economy has been severely hit and many business activities have come to a halt. 3. share. On the 1 st January 2009, a royal decree increased the maximum wage basis to calculate the amount of unemployment benefits and assure these benefits are linked to the rise of the cost of living. Normally, under the general rules for temporary unemployment, a temporary unemployed employee can continue to perform his existing complementary activity (“bijberoep”/”activité accessoire”). No. In the normal temporary unemployment regime relating to a (temporary) lack of work due to economic circumstances, employees must have worked a certain number of days during a certain period before they can be entitled to temporary unemployment benefits. This means that you can receive unemployment benefits for the full amount and that your income of the complementary activity will not be deducted from the temporarily unemployment benefits. capac (22.09.2020) Since September 1, 2020, the rules for temporary corona unemployment have changed. Can Belgian temporary unemployment benefits be paid to employees who are subject to Belgian social security and who live abroad? In response to the COVID-19 crisis, the Belgian government has taken different measures over the past months. I relocated to Belgium for my current job and I was given relocation … In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. The Belgian Overseas Social Security scheme is a distinct social security regime that exists besides the general Belgian social security scheme for employees. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. The substantial increase in temporary or economic unemployment (tijdelijke werkloosheid/chômage technique) is being interpreted as a strong indicator of how hard the global economic crisis has hit Belgium. In the event of temporary unemployment due to a lack of work for economic reasons, the worker is entitled to a supplement to the temporary unemployment benefits. The employee who wants to receive temporary unemployment benefits must inform his trade union or the HVW/CAPAC, the Auxiliary Unemployment Benefits Service. The principle is the following: the state where you pay the social security contributions is also competent for the payment of the benefits. This supplement will be paid by the RVA/ONEM. For businesses it means they do not have to sack any workers they do not need at the minute. Temporary unemployment. What happens when a temporarily unemployed employee becomes sick? EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Coronavirus in a Flash Belgium: New Measures for Employers to Cope with COVID-19: Working Time Reduction, Temporary Unemployment and the Consumption Check The Government has introduced several new measures which employers can use to cope with the corona crisis. Howeve… Obtaining temporary unemployment due to force majeure is possible within three to four days. All Rights Reserved. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. No social security contributions are due on this supplement. Temporary unemployment and group insurance – points of attention. Temporary unemployment is a tool that allows workers to sign on for unemployment benefit for a temporary period due to lack of work. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA/ONEM). Moreover, they must have their effective residence in Belgium. ... if you quit your job you can't receive any unemployment benefits. In case the unemployed employee would have been entitled to a higher temporary unemployment benefit, the shortfall would be paid out through an additional payment. This is what emerged from the new results of Statbel, the Belgian statistical office, based on the Labour Force Survey. However, in … What are the consequences of the temporary unemployment benefit for the Belgian State pension (legal pension)? In the context of the coronavirus crisis, many employers in Belgium are providing for the payment of a supplement to compensate temporarily… Federal Work Minister Nathalie Muylle told lawmakers on Wednesday that the degressive principle applied to unemployment benefits would be suspended for a period of three months from … This can be done through the simplified C3.2A Corona form. The … In the past few weeks, a large number of Belgian companies have placed (part of) their employees on temporary unemployment due to force majeure, following the extension of this possibility adopted by the federal government on 23 March 2020. These rising figures suggest that there will be a high increase in general unemployment in the coming months. Thanks for answer! For the calculation of the State pension, account will be taken of the last salary that was paid before the period covered by temporary unemployment benefits started. Frontier workers who live in another country (for example, France, Germany, the Netherlands or the Grand Duchy of Luxembourg), but work in Belgium can be entitled to unemployment benefits for temporary unemployment in Belgium. The substantial increase in temporary or economic unemployment (tijdelijke werkloosheid/chômage technique) is being interpreted as a strong indicator of how hard the global economic crisis has hit Belgium. Manual workers and clerical workers (in the private, public and non-profit sectors), temporary workers during the term of their contract, contractual employees within an educational institution and apprentices on work-linked training courses are all eligible to receive temporary unemployment benefits. It is thus not possible to work in the morning and to be unemployed in the afternoon (or vice versa). These measures will have a huge financial impact on the Belgian companies. In principle, an employee who receives an unemployment benefit cannot combine this benefit with a salary. On top of this monthly temporary unemployment benefit, the employee will receive a supplement of 5.63 EUR a day. A temporarily unemployed person can always work for another employer while he is temporarily unemployed with his first employer. On top of this monthly temporary unemployment benefit, the employee will receive a supplement of 5.63 EUR a day. What does the employer have to do to apply for temporary unemployment benefits? This can be done through the simplified C3.2A Corona form. There are two forms of temporary unemployment, the temporary unemployment due to force majeure and the temporary unemployment due to economic reasons. The same holds true for unemployment benefits due to temporary unemployment for economic reasons (see below). In case of temporary unemployment due to force majeure, the employer does not need to take other measures before he can apply for the temporary unemployment. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. Note that these unemployment benefits only cover a part of the lost salary and are capped at 70% of monthly pay (up to EUR 2,754.76). These rising figures suggest that there will be a high increase in general unemployment in the coming months. an exact description of the force majeure) to the local office of the RVA/ONEM as soon as possible after the electronic application is temporarily suspended. This declaration can be introduced via the website of the social security administration (http://www.socialsecurity.be/). What are the consequences of the temporary unemployment benefit for the supplementary pension. 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