Student work to 600 hours per year
January 2023 – Students can simply participate in the labour market. If employer and student comply with certain conditions, students are even subject to more favourable social security and tax rules than other employees. The government decided at the end of October to extend that favourable regime even further.
Students
A student employment agreement is initially an ordinary employment contract. The agreement becomes a real student contract only when a set of conditions are met.
The first condition is that the contract is concluded between an employer and a student. But who is a student? According to the government, a student is: any person who has the principal status of a student and is pursuing secondary, higher or university education in an educational institution, or who is preparing an examination before the central examination board.
It thus refers to persons who are primarily studying and who, in addition, and subordinate to studying, also perform work. An unemployed person who is doing supplementary studies is not a student. The same applies to 'students' enrolled in a night school or attending education with a limited curriculum.
There is no maximum age requirement, but there is a minimum age: a student contract can only be concluded with young people aged 15 or over, who are no longer subject to full-time compulsory education. After all, labour under 15 is child labour.
Some combinations of working and studying are not allowed:
the employer and the student must not have been linked by an employment contract in an uninterrupted manner for more than 12 months; and
the student may not simultaneously perform unpaid work as part of an internship that is part of the study programme.
Foreign students originating from a country of the European Economic Area or from Switzerland may also conclude a student agreement, even if they do not pursue education in Belgium or if they do not reside here. Special rules apply to other foreign students.
Agreement
The employer and the student enter into an ordinary employment contract. There are 4 types of contracts, namely that of worker, clerk, commercial representative or servant. This applies equally to students.
What is special is that the student contract must be for a fixed term and in writing in two copies. The student may conclude and terminate his agreement himself and (collect his wages) if he is 18 years of age or older.
A copy of the agreement must be sent to the Social Laws Supervision Department and a declaration of employment (DIMONA declaration) must also be made.
A student agreement can be concluded both during school holidays, and during the school year.
Maximum duration
The Labour Act does not provide a maximum duration for entering into such a contract (albeit a student may not be continuously employed by the same employer for more than 12 months, as then it becomes an ordinary employment contract).
Taxation and social security
If we find ourselves in a situation where student work is allowed, we soon come to the question of the tax and social security implications.
For a certain number of hours - the so-called quota - special rules apply.
If the total number of hours the student works remains within that quota, no social security is owed, either by the student-worker or the employer. However, a solidarity contribution of 5.42% is due for the employer (+0.01% for the Asbestos Fund) and 2.71% for the student (which is deducted from the gross salary).
In terms of taxation, there are 3 elements to consider additionally:
In theory, ordinary personal income tax is due on wages, but if the student does not exceed the quota, he is unlikely to earn more than the tax-free minimum and so in practice no tax is due.
However, withholding tax is due on the salary. But if the student is within the quota, the employer can apply an exemption.
Finally, and what is sometimes forgotten, the student remains a dependent. The income he earns from his student work - insofar as the work is limited to the quota - is not counted in judging whether or not the dependent person has his own means of subsistence.
Contingent
Therefore, to enjoy the above favourable regime, it must be a student agreement and there are 2 additional conditions:
(a) The student may not work at times when he is required to be present at the educational institution;
b) The student may not work more than 475 hours on an annual basis.
And it is precisely the latter that was decided by the Council of Ministers on 28 October 2022 that it could best be a bit more generous. The government decided to increase the quota of 475 hours to 600 hours for 2023 and 2024. It also decided that this increase would be evaluated in 2024 to see whether the increased quota could continue after 2024.
