Social Security
1. Postponement payment social security contributions of employees
Contributions towards NSSO | Postponed to |
Q1 2020 | 15 December 2020 |
Q2 2020 | 15 December 2020 |
The most important measure is certainly the postponement of the payment of amounts due to the NSSO. Companies can still pay social security contributions for the first and second quarter until 15 December 2020.
The sectors catering, recreation, culture, festivities and sport, and shops and stores affected by compulsory closure are automatically entitled to the deferment. Companies that are closed because they are unable to comply with the sanitary measures will be able to obtain a deferment on the basis of a statement of honor (cf. website here).
2. Repayment plans
In addition, employers experiencing payment difficulties due to the Covid-19 virus can apply for a repayment plan for the first and second quarter of 2020. Such payment plan allows an employer to spread its monthly payments towards the NSSO, with a maximum of 24 months. The request has to be done on the follwing link.
3. Temporary unemployment for force majeur
Unemployment allowance | Duration |
70 % of a capped gross income (2.754,76 EUR) | 31 December 2020 |
+ supplement of 5,63 EUR per day paid by of the National Employment Office | 31 December 2020 |
The company can rely on the system of temporary unemployment due to force majeure or economic reasons (in case of a substantial drop in production, turnover or orders as a result of the corona virus). Under this flexible regime, employees will receive an allowance of up to 70% of their salary (capped at 2.754,76 EUR). In both cases a specific procedure needs to be followed. The government has very recently introduced a much more flexible regime whereby all companies can follow the procedure of force major for unemployment due to the corona crisis. The procedure can be found on following link (note that your payroll provider will give you the necessary assistance).
4. Bridging allowance
The federal government expands the right to a bridging allowance for self-employed individuals and makes the conditions more flexible in response to the COVID-19 crisis. At the moment, the bridging allowance can be requested for March, April, May, June, July and August 2020. This period can be extended depending on the length of the crisis. The bridging allowance must be requested via your affiliated social insurance fund.
Who?
A full time self-employed person, helpers, assisting spouses and starters (if affiliated in March), directors, managers and working partners.
- Who have been forced to close down their activities completely or partially as a result of the measures taken by the National Security Council (see list of activities: https://www.vlaio.be/nl/begeleiding-advies/moeilijkhedencoronavirus/specifieke-maatregelen-mbt-het-coronavirus/welke);
- Other self-employed individuals who (voluntary) stop their activities because of the current crisis for at least 7 consecutive days within that month. The self-employed person may only perform minimum and urgent tasks during this 7-day period. The social insurance fund will indicate how this must be proven.
- Self-employed individuals with a secondary activity can benefit from this bridging allowance if they pay provisional social security contributions that is at least equal social security contributions as a full time self-employed person.
- Self-employed individuals with a secondary activity who do not fulfil the above condition can apply for a semi-bridging allowance if they stop their activity within one month for 7 consecutive calendar days.
Conditions?
- You owe social security contributions as a self-employed individual in Belgium;
- You do not benefit from a replacement income, with the exception of a temporary unemployment benefit.
Amount?
Until now, the bridging allowance only existed for self-employed individuals who would stop their activity for a month. This is now more flexible - for all forms of bridging allowance - to 7 consecutive calendar days. In normal times, an interruption of 7 days stands for an allowance of 7 days. Now, in March and April 2020, the crisis bridging allowance provides for a full monthly amount of 1,291,69 (gross) or 1,614.10 EUR (gross) (with family dependants) for every self-employed person who interrupts his or her activity for at least 7 consecutive calendar days in that month because of COVID-19.
The so-called semi-bridging allowance for self-employed persons with secondary activity can be requested if their revenue is between 6.996,89 and 13.993,77 EUR per year. If this condition is fulfilled, the independent can request a semi-bridging allowance of 645,85 EUR per month (or EUR 807.05 per month in case of family dependants). However, there is a limit of 1.614 EUR per month for federal benefits. This means that an independent with a secondary activity can combine a temporary unemployment benefit or a pension with the bridging allowance, but that he can receive a maximum of 1,614 EUR of federal aid. The bridging allowance will therefore be limited.
The bridging allowance can be combined with the Corona disruption premium or compensation premium.
Relance bridging allowance
Businesses that were still forced to close their business on May 3, 2020 or whose activities were still forbidden and suffered a decrease of their turnover/orders of 10% or more in comparison to the same period in 2019 can request a relance bridging allowance. The relance bridging allowance can be cumulated with restarting your activities.
Conditions:
- Fulltime self-employed persons, primo-starters, assisting spouses, self-employed individuals with a secondary activity if they pay provisional social security contributions that is at least equal to social security contributions as a full time self-employed person.
- The relance bridging allowance cannot be cumulated with:
- Normal bridging allowance;
- Corona parental premium for self-employed persons;
- Other allowances of your health insurance.
The relance bridging allowance is the same amount as the normal bridging allowance (see above).
The relance bridging allowance must be requested via your affiliated social insurance fund.
5. Deferral payment period of annual social security contributions for companies
Companies will have to pay the annual social security contribution before October 31, 2020 (instead of June 30).