Belgium faces high tax burden on work, prompting unemployment worries

The Belgian federal government is urging longer working hours as employers seek extra staff and the cost of living rises. Yet the complex tax system makes earning extra income difficult. Popular flexi‑jobs, which allow tax‑free earnings up to a ceiling, have been expanded to all sectors, but finance minister Vincent Van Peteghem warned the scheme could strain the welfare state.

Professor Stijn Baert highlighted that 1.5 million people in Belgium are neither employed nor looking for work. He argues the core issue is not flexi‑jobs but the overall high tax burden on regular employment, stating: “Het lek voor onze welvaartsstaat is niet dat we te weinig belastingen betalen op flexi‑werk. Het lek is dat we structureel te veel belastingen betalen op regulier werk, waardoor werken te weinig loont, we het met te weinig mensen doen en dus met te weinig mensen bijdragen.” The debate centres on whether tax reforms or the flexi‑job model pose the biggest risk to Belgium’s social‑security finances.