Phasing out of the special social security contribution
June 2022 – In addition to the ordinary social security contributions, employees are subject to a special social security contribution (BBSZ/CSSS). As part of the mini-tax-shift, the government has decided to abolish this BBSZ/CSSS. But this will be done gradually. For the time being, we will have to make do with a reduction.
BBSZ/CSSS
The special social security contribution was introduced in 1994 as part of the overall plan of the Dehaene I government, which focused on consolidating public finances and increasing social security funding.
The monthly deduction is calculated on the worker's quarterly salary. The salary taken into account is the worker's gross salary (at 108% for manual workers) which is declared on a quarterly basis to the NSSO.
If the worker has more than one employer, the salary paid by the other employer(s) is not taken into account.
The double holiday pay is not a wage and is not taken into account when determining in which special contribution bracket the worker falls.
Parts of the salary which the employer could not determine at the time of the declaration (e.g. salary arrears) are also not taken into account.
The part of the salary that is paid by a third party (e.g. a life insurance fund) is taken into account.
The special contribution is deducted monthly from the salary, but is only an advance on the final amount to be paid. The final amount is determined on the basis of the employee's personal income tax return. At that time, the net taxable income of the household may also be taken into account. The amount of the contribution varies according to whether the person is a single person or a cohabitant or spouse with two incomes.
The annual BBSZ/CSSS is currently determined as follows:
Household income <18 592,02 euros: Contribution: 0.
18 592,02 euros ≤ household income < 21 070,96 euros: Contribution: 9% of household income above 18 592,02 euros
21 070,96 ≤ household income < 60 161,85 euros: Contribution: 223,10 euros + 1,3% of household income above 21 070,96 euros
60 161,85 ≤ household income: Contribution: 731,28 euros.
The income ceilings for the calculation of the BBSZ/CSSS are not indexed.
Mini tax-shift
The first step towards the abolition of the BBSZ/CSSS is the reduction of the 9% rate applicable to the income bracket of 18 592,02 euros to 21 070,96 euros to 5%.
A distinction will now be made between taxpayers who are taxed jointly and taxpayers who are taxed individually.
For taxpayers who are taxed individually :
the percentage of 1,3% remains applicable to the income bracket of 21 070,96 euros to 37 344 euros;
the percentage of 1,3% is increased to 4,0090% for the income bracket from 37 344 euros to 40 997,26 euros; and
the BBSZ/CSSS remains unchanged for taxpayers who are taxed individually and whose household income exceeds 40 997,26.
For taxpayers who are taxed jointly:
the percentage of 1,3% remains applicable to the income bracket from 21 070,96 euros to 60 181,95 euros ;
the BBSZ/CSSS will be equal to 632,39 euros, when the household income is included in the bracket from 60 181.95 euros to 74 688 euros;
the BBSZ/CSSS is equal to 632,39 euros, increased by 1,3629% of the part of the household income above 74 688 euros, when the household income is between 74 688,01 euros and 81 944 euros.
The BBSZ/CSSS is therefore gradually reduced. The maximum contribution remains at 731,28 euros.
For taxpayers who are taxed individually, the maximum contribution of 731,28 euros is reached with a household income of 60 181,95 euros (as in the current calculation), while for taxpayers for whom joint taxation is established, the maximum contribution is reached with a household income of 81 994 euros.
Four phases
The minister stated in 2021 that the aim was for the contribution to be abolished in four phases, corresponding to the phases in which the minimum wage increases: in 2022, 2024, 2026 and 2028.
Phase 1 is therefore already complete, but we must point out that it is only a first, small step. The taxpayer with an income of more than 21 070,96 euros, but less than 40 000 euros, benefits from the maximum reduction. This reduction corresponds to the difference between 9% and 5% of 21 070,96 euros (i.e. approximately 99 euros).
Above these amounts, the rate increases slightly, so that the BBSZ/CSSS decreases more slowly. Since the maximum contribution is simply maintained, there is no reduction for higher incomes. The maximum is simply reached later.
