Increased employer’s contributions on company allowance (UCA)
For the years 2023 and 2024, the employer’s social security contributions on the company allowance are increased, also for the ongoing UCAs.
A former employee who benefits from the system of unemployment regime with company allowance (UCA, the former bridging pension), receives on top of the unemployment allowance a company allowance from the employer.
This company allowance is subject to special social security contributions, the so-called DECAVA contributions. The amount of the employer’s DECAVA contribution depends on the age of the employee at the start of the UCA.
The Program Act of 26 December 2022 provides an increase of this DECAVA contributions for the years 2023 and 2024 for companies that belong to the profit sector and which are not recognised as companies in difficulties/restructures. This increase applies irrespective of the start date of the UCA and as a consequence also applies to ongoing UCAs.
More precisely, the percentages of the contributions are increased with a factor of 1.047 as from 1 January 2023 until 31 December 2023 and with a factor 1.094 as from 1 January 2024 until 31 December 2024.
This results in the following:
|
Age at the start of UCA |
Base contribution |
2023 |
2024 |
|
< 55 |
142.50% |
149.20% |
155.90% |
|
≥ 55 and < 60 |
75.00% |
78.53% |
82.05% |
|
≥ 60 and < 62 |
37.50% |
39.26% |
41.03% |
|
≥ 62 |
31.25% |
32.71% |
34.19% |
Action point
Take the increased contributions on the company allowance (in the context of UCA) into account for the years 2023 and 2024.