The Di Rupo government looking for more
social security contributions

The Di Rupo government is looking for more social security contributions in the case of termination
of an employment contract.


The severance pay, the protection indemnity payable to candidates or members of the works' council (WC) and the committee for prevention and protection at work (CPPW), and to the members of the union delegation, and the indemnity, paid in the case of termination by mutual consent, are at present subject to social security contributions.

Also the compensation, paid as a counterpart for compliance with a non-compete obligation, is subject to social security contributions, except if the obligation has been agreed upon after the termination of the employment contract.


Other indemnities, due by the employer because of his failure to comply with his legal, contractual or statutory obligations with respect to the termination of an employment contract, are not subject to payment of social security contributions. Such as – by way of examples – the indemnity for abusive termination, the indemnity for abuse of rights, the lump sum indemnity due because of the violation of a lay-off prohibition (pregnant workers, complaint for harassment, application for educational leave, ……). Likewise, the goodwill indemnity en the (legal) closure indemnity, are explicitly excluded from payment of social security contributions.

In accordance with a proposal of the Di Rupo government, apparently approved by the council of ministers, all indemnities, paid because or at the occasion of the termination of an employment contract, will become subject to social security contributions in the future.

Also the compensation, paid within the year following termination of the employment contract as a counterpart for compliance with a non-compete obligation, will become subject to social security contributions, even if that obligation has been agreed upon after the termination of the employment contract.

Only the (legal) closure indemnity would still escape from social security contributions. Also the compensation for moral damages would remain unaffected, but – as generally known – the social security and the tax authorities scrutinize this qualification with a lot of suspicion.

16 September 2013

Marcel Houben - marcel.houben@peeters-law.be