Contrary to what is being circulated, the CPAS will not be left to face the additional demands linked to the time-limiting of unemployment benefits on their own. The federal government has planned unprecedented compensation: €26 million as early as 2025 to prepare for the reform, then more than €300 to €700 million per year between 2026 and 2030. Resources are increasing sharply for staff, support and activation. The CPAS will be fully supported to ensure effective follow-up and long-term reintegration.
1. Background
Programme law of 18 July 2025 (MR 29 July 2025)
The federal parliament adopted a programme law that time-limits access to unemployment benefits (maximum 24 months) and limits integration allowances to a maximum of one year. Here is some context on this reform:
Thousands of job vacancies in Wallonia and Brussels
In the third quarter of 2024, Belgian companies offered 171,946 job vacancies.
With 65.92% of all job vacancies in Belgium, the Flemish Region remains the region with the highest number of job vacancies. It is followed by the Walloon Region with 21.70% and the Brussels-Capital Region with 12.37%.
This reform is therefore supported by the business community, whose development is often limited by a lack of sufficient candidates to fill available positions.
Low employment rates, particularly in Wallonia and Brussels
Belgium is among the 5 European countries with the lowest employment rate. However, rates vary between regions: in Flanders, 76% of people of working age have a job, compared to 67% in Wallonia and 64% in the Brussels Region. At the same time, 171,000 jobs are available in our country.
While the national unemployment rate is 6.2%, it is much higher in Wallonia (15.1%) and Brussels (10.8%) than in Flanders (5%).
The number of long-term unemployed (over 2 years) is also higher in Wallonia (49% of jobseekers) and Brussels (45.5%) than in Flanders (30%).
A necessary reform, but one that must be accompanied
The reform of unemployment benefits will gradually affect recipients of unemployment benefits.
This reform has consequences for the CPAS. Indeed, some of the people excluded from unemployment benefits will apply for help from the CPAS, so it is necessary to support them.
Main challenges:
- Preventing delays in processing assistance requests;
- Strengthening support towards employment;
- Encouraging CPAS to promote rapid and lasting professional reintegration.
2. The unemployment reform
Time-limiting of unemployment rights in several waves
- Wave 1: End of entitlement on 1 January 2026
The people concerned received a warning letter on 15 September.
This wave concerns unemployed people who have received full unemployment benefits for more than 20 years, as well as recipients of integration allowances for more than one year. - Wave 2: End of entitlement on 1 March 2026
The people concerned received a warning letter in mid-October.
This wave concerns unemployed people who have received full unemployment benefits for between 8 and 20 years - Wave 3: End of entitlement on 1 April 2026
The people concerned received a warning letter in mid-November.
This wave concerns unemployed people who have received full unemployment benefits for less than 8 years. - Wave 4: End of entitlement on 1 July 2026
The people concerned will receive a warning letter in January 2026.
This wave concerns unemployed people in the 2nd benefit period. - Wave 5: End of entitlement between 1 July 2026 and 1 July 2027
The people concerned will receive a warning letter in February 2026.
This wave concerns unemployed people in the 1st benefit period with a professional record of less than 5 years. - Wave 6: End of entitlement on 1 July 2027
The people concerned will receive a warning letter during 2026.
This wave concerns unemployed people in the 1st benefit period with a professional record of more than 5 years.
Exceptions
- Artists (arts work allowance);
- Unemployed people over 55 with a professional record of more than 30 years (+1 year each year → 35 years in 2030);
- Disabled workers employed since 1 July 2004 in a sheltered workshop, with retention of benefit entitlement;
- Part-time workers with an income guarantee allowance at the time entitlement ends, for the duration of uninterrupted part-time employment (at least half-time);
- Unemployed people who started training in a shortage occupation before 1 January 2026 and who benefit from an availability exemption. Entitlement is retained for the duration of the training.
3. Impacts on the CPAS and compensation
Some of those excluded from unemployment benefits are likely to turn to the CPAS. To offset the additional costs the measure may cause for the CPAS, the federal government has provided various compensation mechanisms so that local authorities do not bear the cost of the reform.
Draft royal decree granting a subsidy to the CPAS to prepare for the implementation of the unemployment reform
The first compensation granted by the federal level is a subsidy given to the CPAS in 2025 to help them prepare for the impact of the reform. The expenses covered by this compensation are additional staff and operating costs.
Overall, this additional envelope amounts to €26 million, allocated to the CPAS according to the number of people excluded from unemployment (this figure is taken directly from ONEM statistics).
The amount to be granted to each CPAS was communicated to the CPAS Federations on 10 October.
Draft law amending the law of 26 May 2002 on the right to social integration regarding the compensation of the CPAS following the time-limiting of unemployment benefits
Overall, this compensation has three objectives: supporting the rising cost of handling applications, supporting guidance through the individualised social integration project (PIIS), and encouraging professional reintegration.
From a budgetary point of view, this compensation is particularly significant:
- 2026: €300 million + €6 million = €306 million
- 2027: €300 million + €476 million = €776 million
- 2028: €302 million + €310 million = €612 million
- 2029: €343 million + €39 million = €382 million
- 2030: €343 million + €11 million = €354 million
Support for managing the increase in applications
The government aims to support the CPAS with the administrative burden and staff costs resulting from the influx of beneficiaries. It was therefore decided to double the subsidy covering staff costs (from €518 to €1,036).
This increase will apply to people excluded from unemployment benefits between 1 January 2026 and 30 June 2028 as a result of the reform.
Support for guidance towards activation through the PIIS
Currently, when a CPAS concludes a PIIS with a beneficiary, the federal reimbursement rate for the integration income is increased by 10%.
Under the government's decision, from 1 January 2028, a bonus-malus system for this increase will apply, depending on the number of PIIS concluded relative to the number of integration income recipients. The aim of this measure is to support CPAS that actively invest in guidance towards activation:
- 15% if at least 80% of beneficiaries have concluded a PIIS;
- 12.5% if between 60% and 80% of beneficiaries have concluded a PIIS;
- 10% if between 40% and 60% of beneficiaries have concluded a PIIS;
- 7.5% if between 20% and 40% of beneficiaries have concluded a PIIS;
- 5% if less than 20% of beneficiaries have concluded a PIIS.
In addition, the federal government agreement aims to generalise the PIIS. Currently, it is mandatory for young people under 25, people fit for work, and beneficiaries in precarious situations requiring specific support. Currently, just over half of integration income recipients benefit from a PIIS.
But generalising the PIIS is not enough. It must also aim towards professional reintegration. That is why we are introducing two new provisions within the PIIS. First, the possibility for people with an addiction problem to include follow-up of a detoxification treatment in the PIIS when recommended by a doctor. Second, for people in debt, budget guidance becomes a mandatory part of the PIIS.
Incentive for professional reintegration
If a person no longer receives integration income for at least 1 year because they have professional income, and if that person benefited from a PIIS while receiving integration income, the federal level will intervene financially by reimbursing the equivalent of one twelfth of the annual integration income at the household rate (i.e. €1,776.07).
4. Notes made when the draft law was approved:
During the drafting of the bill, a number of notes were made:
- Resolving the problem of advance payments
The government will examine the possibility of allowing payment institutions to grant advances themselves. - Expanded qualification requirements for social workers
Aware of certain difficulties in recruiting new social workers, the Royal Decree of 11 July 2002 regulating the right to social integration is being amended to broaden the qualification requirements for social workers. - Register of social benefits and allowances
The aim is to include in the programme law (initial 2026 budget) a legal basis allowing the creation of a register of social assistance and a cap on all benefits and allowances. This is essential to ensure that work always pays more than accumulating social benefits. - Socio-professional exemption
The government wishes to define a new mechanism aimed at making work more rewarding (a progressive system).