Belgium Adjusts Pension Calculations for the Unemployed

The Belgian government has announced new amendments to the pension system aimed at reducing the impact of unemployment periods on retirees’ pension rights, effective from February 2025.

Under the new rules, pension accrual during periods of unemployment will be calculated based on a capped notional salary of approximately €33,000 per year, instead of relying on the last actual salary received. This means that unemployed individuals will accumulate lower pension rights than before in Belgium.

The decision applies to all periods of unemployment starting from February 1, 2025, and will come into force for retirees as of 2027.

The government has also exempted certain special categories, such as temporary unemployment imposed by employers, lack of job opportunities for artists, and professions including fishermen and dock workers, who will continue to accrue pension rights under the previous rules.

Simulations show that a single person earning an average gross monthly salary of €3,500 could lose around €14 per month after one year of unemployment, rising to approximately €71 per month after five years. For those earning €5,000 per month, the loss could reach up to €179 after five years.

The government stated that these changes aim to prevent unemployment from becoming a form of “pension reward,” while limiting the recognition of inactive periods to a maximum of two years. This approach is intended to ensure the sustainability of pension funds and reduce future financial pressure on the pension system.

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