Labor Market Reforms in Belgium—Summer Agreement and New Program Act: Major Transformations on the Horizon

The Belgian federal government has taken two decisive steps in the implementation of its reform agenda. First, the adoption of the so-called Summer Agreement on July 21 outlines an ambitious fiscal and social overhaul. Second, the long-awaited Program Act was approved during the night of July 17 to July 18 and introduces a historic limitation on unemployment benefits. Together, these measures significantly redefine the Belgian labor market ecosystem. 

In this alert, we highlight the main labor and employment law measures that emerged from these two events. 

The Summer Agreement: Working Time Flexibility, Administrative Simplification, and Capped Notice Period               

Increased Working Time Flexibility and Administrative Simplifications

The agreement introduces several measures to make working time rules more flexible: 

Tax-exempt overtime hours: In all sectors, employees may perform 360 hours of overtime on a voluntary basis, with 240 of these being tax-exempt (gross will be equal to net). In the hospitality sector specifically, the quota rises to 450, with 360 hours being tax-exempt. 

Elimination of minimum working duration: Currently, the minimum weekly working duration of part-time employees equals one-third of full-time employment (with some exceptions). This rule will be removed. This will allow, for instance, pensioners, persons with disabilities, close caregivers, etc., to enter the labor market.

Removal of night work prohibition: As a principle, night work (i.e., work between 8 p.m. and 6 a.m. is prohibited (with several exceptions to this rule). This prohibition will be lifted. 

Sectoral Adjustments

• • Tightened night premium schedule for the distribution and e-commerce sector: Night work in the e-commerce sector is set to the time slot from midnight to 5 a.m. (formerly 8 p.m. to 6 a.m.). Premiums paid to employees performing during the night will therefore only be in effect during that time. This measure will not apply to employees already employed who benefit from more advantageous conditions.

Flexible work schedules: Currently, employers need to include all work schedules applicable within the company in the Work Rules. This administrative burden will be removed.

Administrative simplification for temporary work: This ends the obligation to individually establish for each temporary worker the intention to conclude a temporary contract no later than when their engagement by the user company ends. 

Digitalization of the bonus plan: The CLA90 bonus plan (non-recurring, results-based benefits that can be offered to employees in a tax-friendly manner) will be digitalized. 

End of RCC/SWT schemes: The government validates the social agreement concluded by social partners, notably the measure ending RCC/SWT (end-of-career schemes) except for medical RCC/SWT. 

Time credit reform: Time credit will be accessible from age 55 for persons performing heavy work and employed for at least 35 years. 

Reform of Notice Period in Cases of Dismissal

For employment contracts concluded from 2026 onwards, the maximum notice period (or the indemnity in lieu of notice) will be capped at 52 weeks. 

This measure will only begin to have practical effect in 2043, once employees hired under the new regime reach the 17 years of seniority required to trigger the maximum duration. 

The Program Act: A Revolution in the Unemployment Benefits System 

Key Principle: Two-Year Limit

Currently, unemployment benefits in Belgium can be granted for an unlimited duration, albeit under conditions and degressive amounts. The new rule puts an end to this structure. 

The flagship measure of the Program Act, that will enter into effect on January 1, 2026, introduces a maximum unemployment compensation duration of 24 months, disrupting the foundations of the Belgian social protection system. After this period, in cases of continued unemployment, recipients will be required to turn to the CPAS/OCMW (Openbaar Centrum voor Maatschappelijk Welzijn, Centre public d'action sociale, Public Centres for Social Welfare) for social integration income. 

Exclusion Procedures and Target Groups

The government has planned a phased exclusion based on unemployment compensation history. The first group will include long-term unemployed individuals, particularly those receiving benefits for more than 20 years. Notifications will be sent in the course of 2025. 

New Benefit System

Eligibility Criteria 

• • 12 months of employment in the past three years grants entitlement to one year of benefits 
  • Each additional four months of employment entitles the claimant to one extra month of benefits 

Revised Benefit Scale

• • Months 1–3: 65% of average daily wage (higher ceiling, better ratio for low wages) 
  • Months 4–6: 60% of wage 
  • Months 7–12: 60% maintained, but with a reduced ceiling 
  • Year 2: Lump-sum amount based on family situation 

Derogatory Regimes

Several exceptions will mitigate the strict application of the two-year limit: 

Training Exemption 

• • Until 2025: training for shortage occupations 
  • From 2026 onwards: limited to critical health care functions (nurses and care assistants) 

Senior Exemption

• • Over 55 years old with at least 30 years of part-time equivalent career (including assimilated periods such as leave for medical reasons, maternity leave, military service, and temporary unemployment)
  • Tightening scheduled: 35 years of career required as of 2030 

Sectoral Exclusions

• • Artists 
  • Dock workers and sea fishers 

CPAS/OCMW Funding

In view of the increased burden on the CPAS/OCMW, a specific budget has been allocated: 

• • 2026: €300 million (vs. initial €234 million) 
  • 2027: €300 million 
  • 2028: €302.3 million 
  • 2029: €342.6 million 

Outlook and Implications

These concurrent reforms mark a turning point in Belgian social policy. The Summer Agreement emphasizes work incentives through increased net wages and more flexible labor rules. Simultaneously, the Program Act introduces a stronger activation logic by limiting the duration of social rights. 

Companies will need to adapt their HR policies to the new working time regulations and anticipate the implications of the cap on notice periods (as from 2043). Social partners and the CPAS/OCMW will face major organizational challenges to support this transition. 

Next steps: The Summer Agreement still requires legislative transposition, while the Program Act will enter into force as of January 1, 2026.