Social Security Contribution (RSZ) Rebate for First Hires Reformed: What Does This Mean for Your SME?
August 2026 - Hiring a first employee remains a major step for many SMEs. To make this decision financially feasible, the federal government provides a Social Security Contribution (RSZ) rebate for first hires. However, new rules have been in effect since July 1, 2026.
The program is becoming simpler, but the financial benefits are also changing. What does that mean in concrete terms for your labor costs?
A Simpler System with Adjusted Rebates
The target group reduction for first-time hires has been thoroughly reformed. The government aims to make the system more transparent while continuing to support businesses as they grow.
The most important changes are:
the social security contribution (RSZ) reduction for the first employee decreases from a maximum of 3,100 euros to 2,000 euros per quarter;
for the second and third employees, the complex degressive system is being eliminated;
a target group reduction is also being reintroduced for the fourth and fifth employees.
This makes the program clearer, and as an employer, you’ll be able to determine your entitlements more quickly.
What changes with each new hire?
For the first employee, the reduction remains in effect indefinitely. Only the maximum amount is reduced to 2,000 euros per quarter. For companies with a limited payroll, this still represents a significant savings on employer social security contributions.
For the second, third, fourth, and fifth employees, the same rule now applies: a reduction of 1,000 euros per quarter, for a maximum of twelve quarters. These twelve quarters may be taken within a period of twenty quarters.
What about current social security discounts?
If you already had a first employee on staff before July 1, 2026, for whom you are receiving the target group reduction, that discount will automatically be adjusted to a maximum of 2,000 euros per quarter.
Nothing changes for ongoing reductions for a second or third employee. These will continue under the previous, degressive scheme. Only new hires starting July 1, 2026, are subject to the new rules.
Anyone who will soon be hiring a fourth or fifth employee can apply for a new social security reduction for those employees. This was no longer possible in recent years.
See how this affects your hiring plans
Although the maximum reduction for the first employee is lower, the target group reduction remains an important tool for lowering labor costs. In addition, the expansion to include a fourth and fifth employee offers extra support for growing businesses.
Are you planning to hire your first or additional employees soon? If so, it’s worth carefully calculating (or having someone calculate) the total labor costs and the available social security reductions in advance. This way, you can make the most of the new regulation and avoid surprises later on.
