Belgium's New Unemployment Reform: Benefits Capped at Two Years Starting 2026

June 14, 2025
Belgium's New Unemployment Reform: Benefits Capped at Two Years Starting 2026
  • David Clarinval, the Belgian Vice Prime Minister and Employment Minister, is set to introduce a significant reform limiting unemployment benefits to a maximum of two years, effective January 1, 2026, which will impact around 180,000 unemployed individuals.

  • Clarinval argues that this reform is essential to abolish the unlimited unemployment system in Belgium, which he considers outdated and excessively generous compared to other European nations.

  • He emphasizes that the goal of the reform is to incentivize work, ensuring that unemployment benefits serve as insurance for those who have contributed to the workforce rather than as a permanent safety net.

  • Highlighting a paradox, Clarinval points out that while there are 180,000 long-term unemployed individuals, there are also 180,000 vacant positions, indicating a disconnect in the job market.

  • Concerns have been raised, particularly in Flanders, about how this reform will affect unemployed individuals over 55 years old, many of whom may lose their unemployment benefits under the new rules.

  • Currently, among long-term unemployed individuals over 55, 18% are eligible to retain unlimited unemployment benefits due to having a career of at least 30 years, and this percentage is expected to increase as the reform is fully implemented.

  • Critics, especially from the Flemish Greens, have misinterpreted the reform's implications for older workers, mistakenly believing it would allow more individuals over 55 to retain indefinite benefits than is actually the case.

  • Clarinval acknowledges that the reform disrupts a long-standing system of assistance but insists it aligns with modern labor market realities and the necessity for individuals to find employment.

  • Some political parties, such as Défi, argue that the reform disproportionately impacts Brussels and Wallonia compared to Flanders, suggesting it is a hidden state reform; however, Clarinval disputes this notion.

  • The Brussels Community Commission has expressed concerns regarding the reform's impact on its interests and has initiated a conflict of interest procedure, which Clarinval views as a misuse of political processes.

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