These are the main points in Belgium’s new government agreement (1)

1 February 2025

After nearly eight months of negotiations, Belgium finally has a new federal government. The new coalition reached an agreement spanning 203 pages, outlining significant reforms in areas such as taxation, pensions and migration.

Economic and social reforms

Budget deficit: One of the government’s main priorities is to address Belgium’s growing budget deficit. The coalition has committed to a total budgetary effort of approximately 23 billion euros by the end of the legislative term in 2029.
Salaries and employment: The automatic wage indexation system, which adjusts salaries in line with inflation, remains unchanged. A tax reform from 2026 aims to increase net salaries.
A capital gains tax will be introduced on share sales: the first 10,000 euros of net profit will be tax-free, but anything above that will be taxed at 10 per cent.
Labour market: Companies can increase meal vouchers by 2 euros per day, but other vouchers (eco-cheques, culture vouchers) will be phased out.

Pensions and welfare

Welfare benefits: Unemployment benefits will now be limited in time, with standard payments ending after two years, except for those over 55, who will retain long-term support.
Retirement age: Early retirement rules will be eased. Those with a 42-year career can retire at 60, compared to the current requirement of 44 years. However, those retiring too early will face financial penalties, while those working beyond 67 will receive a financial bonus.
Equalisation of pensions: Pension calculations will be standardised across employees, self-employed workers, and civil servants, gradually phasing out special pension benefits for some sectors (e.g., railway workers).
Additional income for pensioners: Retirees will face fewer restrictions on earning extra income.

Migration

Stricter integration rules: Permanent residency will only be granted to those who demonstrate integration efforts, and new citizens must pass a nationality test.
Housing inspections: Police and immigration officials will be allowed to enter homes (with a judge’s approval) to remove rejected asylum seekers causing disturbances.
EU quotas: Belgium will explore the possibility of paying to avoid taking in more asylum seekers than its allocated EU quota.
Welfare: Some new arrivals will have limited access to social benefits for their first five years in Belgium.

Read the full government agreement here.

^{Bart De Wever after a round of government negotiations © BELGA PHOTO NICOLAS MAETERLINCK}

Related news