The Government approves a major tax reform

In this way:

• a single employee on minimum wage will gain +€268/month
• a single employee with a gross salary of €2,300 will gain +€236/month
• a couple with 2 children on minimum wage will gain +€553/month
• a self-employed individual will gain +€330/month

This increase in workers’ purchasing power is possible thanks to:

• a progressive increase of the tax-free allowance from €10,910 to €15,300 by 2030
• a reduction of the special social security contribution
• an increase in tax reductions for dependent children
• the introduction of an entrepreneur deduction for profits and earnings
• the abolition of several taxes

1. In summary: what increase in purchasing power

The tax reform will lead to a reduction in tax on labour of up to €4 billion by 2030
The gains will be as follows

• Single employee on minimum wage: €268/month (gain from tax reform + meal vouchers + minimum wage increase)
• Single employee with a gross salary of €2,300: €236/month (gain from tax reform + meal vouchers)
• Couple with two dependent children on minimum wage: €553/month (gain from tax reform + minimum wage increase + meal voucher increase)
• Self-employed individual: €330/month (gain from tax reform + entrepreneur deduction + tax reduction for equity + abolition of the surcharge for lack of advance payments)

And this is only the beginning, since the MR has ensured that at every budget conclave, ways to further increase take-home pay are examined. This explains why, at the November 2025 conclave, it was decided to bring forward the tax reform by allocating €60 million for a tax boost on low wages from 2026 and more than €750 million from 2028!

2. The measures in detail

The flagship measures of the tax reform are:

• The increase of the tax-free allowance from €10,910 to €15,300 (progressive increase until 2030). The MR had promised it, and it delivered: no tax before reaching an amount equivalent to the minimum living income (the RIS)
• Reduction of the special social security contribution, allowing an annual gain of up to
  €365;
• Increase in tax reductions for dependent children (tax reduction from €1,980 to €2,650). Freezing of amounts for 5 or more children during the legislature;
• Before the reform, the unemployed were taxed less than workers. An employee, at equal income, paid more tax than someone unemployed. For the MR, this was unacceptable. The MR secured the abolition of the tax reduction for replacement income. This abolition allows for identical taxation between workers and non-workers, and widens the €500-per-month gap promised by the MR;
• The MR obtained the reintegration of the IT sector (digital professions) into the favourable
  copyright regime. This reintegration strengthens the presence of our innovative companies and the tech sector in Belgium. The MR’s persistence pays off, Belgium becomes competitive again in attracting the best foreign talent and preventing our best developers from choosing to build their careers abroad;
• The MR wants to reward self-employed individuals. The government will introduce
  an entrepreneur deduction for profits and earnings of 10%, allowing a tax gain of up to €480 per year!
• The MR also defended a proposal to abolish several outdated small taxes (for
  example those on fruit juices); and,
• Finally, the MR fought to prevent company managers from being penalised under the reform. The government agreement provides for a limit on the share of remuneration that can be paid as a benefit in kind (20%). If the 20% limit is exceeded, no new tax is planned for managers, but this limit is simply added to the conditions for benefiting from the reduced 20% corporate tax rate. For employees, the MR obtained a reduction of the employer’s penalty to 7.5%. The 20% threshold will be calculated at company level, which will soften its impact.