Government plans major savings on federal civil service
The government is set to cut almost half a billion euros from Belgium’s federal civil service over the coming years. The savings will come mainly from limiting staff replacements and introducing higher employer pension contributions for new permanent officials, according to budget documents reported by De Standaard and Het Belang van Limburg.
Under the first measure, government departments will only be allowed to replace two out of every five staff who leave, until they reach their individual savings target. The rule will not apply to security and justice services, including the police, Defence, Justice, Home Affairs and the Immigration Office. This partial hiring freeze is expected to save around 100 million euros this year, rising to 175 million by 2029.
The second measure affects pensions for newly appointed permanent civil servants. Federal services and state-owned companies will gradually pay a higher employer contribution on their salaries to cover future pension costs.
The rate starts at 9.5 per cent this year and will increase to 38 per cent by 2029. The federal pensions service is expected to receive an extra 100 million euros next year and 284 million by 2029.
Although this brings extra money into the pension system, the cost will be borne by the departments themselves, encouraging them to hire more staff on contractual rather than permanent terms. The government says this should make managers think more carefully about the type of jobs that still require permanent status.
Together, both measures should deliver 459 million euros in savings by 2029, part of the 9.2 billion that the government aims to find in its wider budget plan.
An FPS Finance employee at Charleroi Airport © BELGA PHOTO VIRGINIE LEFOUR
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