A new « social » pension bonus

Within the framework of the tax shift the Federal Government decided to allocate a budget of 25 million euros to the revaluation of the minimum pension, and this on top of the well-being envelope (497 million of which is allocated to pensions in the period 2015-2016).

Today, on 26th Febraury, the government has approved a draft bill raising the minimum pension by  0.7% for pensioners having a 45 year career as an employee or a self-employed person.  In 2016 this increase will be paid out in the form of a one-off premium in December. As from 2017 the monthly pension amount will be increased. This represents an increase of the pension amount by nearly EUR 100 per annum.

The text also provides the possibility – by way of a Royal Decree – to raise the percentage of the minimum pension increase for pensioners who meet the career criterion. When deciding on the allocation of the well-being envelope the social partners will be asked to reserve means for the revaluation of the minimum pension as intended by this draft bill. 

On the basis of the data provided by the administration the revaluation of the minimum pension amount will have a positive impact on both men and women. In the pension scheme for employees 76,000 pensioners, 52,000 of whom are women (69% of the total amount of beneficiaries), will benefit from this increase.

Minister for Pensions Daniel BACQUELAINE : « This measure actually introduces a ‘social’ pension bonus, since it permits to revaluate minimum pensions depending on one’s professional career. It is not normal that following a 45 year career a single person only receives EUR 1,145.  This measure will contribute to reinforcing the link between one’s professional career and the pension amount. »

Minister for Self-Employed Persons, Small and Medium-Sized Enterprises, Agriculture and Social Integration Willy BORSUS : « Around 170,000 pensioners will be able to benefit from the EUR 25 million envelope, being more than half of the employees or self-employed persons receiving the minimum pension. It must be emphasized that in August 2016 the minimum pension for self-employed persons will be equal to the one for employees. This means that over a period of a year and a half certain self-employed persons have seen their pensions increase 4 times. »