Higher meal vouchers for employees, tax relief pension savings costs government record sum
More than one million Belgians will receive higher meal vouchers from their employers this year, according to calculations by Het Nieuwsblad. This can be partly explained by the fact that the federal government increased the tax deduction for meal vouchers. Meanwhile, it also appears that the tax benefit for pension savings will cost the government 650 million euros this year, a record figure.
Around seven in ten employees in the private sector receive meal vouchers. Until recently, the maximum amount was 8 euros, but the government decided at the start of this year to raise it to 10 euros. A second increase of a further 2 euros will follow. It has been since 2016 that the amount was last increased.
Companies decide for themselves on the value of the meal vouchers, or follow the agreements made within a sector. According to meal voucher issuer Edenred, an agreement on an increase has already been reached in 130 sectors, covering 950,000 employees.
In 16 sectors where meal vouchers did not previously exist, they are now being provided to employees. In just over half of the sectors, the increase amounts to 2 euros.
The rise can be partly explained by the fact that the federal government also increased the tax deduction for meal vouchers from 2 to 4 euros. According to labour economist Stijn Baert, Belgium’s strict wage legislation also plays a role, as it has left no room for wage increases for a few years now.
Pension savings
Meanwhile, data from the ministry of Finance, reported by De Tijd and L'Echo, shows that the tax benefit for pension savings is set to cost the federal government 650 million euros this year – a record.
Anyone who saves for a pension via a fund or a life insurance policy enjoys an annual tax reduction of 30 or 25 per cent, depending on the amount they contribute. This year, that benefit is expected to cost the federal government 650 million euros. In 2025, the figure was 635 million euros. Twenty years ago, it was less than 400 million euros.
There are several reasons for this increase. For instance, the tax relief thresholds are indexed, and the average contribution is rising. Moreover, an increasing number of people have started pension saving: from 1.4 million in 2001 to nearly 2.5 million in 2013. For the past twelve years or so, that figure appears to have stabilised. Out of a total of 9.6 million taxpayers, this means that 26 per cent of taxpayers make use of the so-called third pillar.
Flemish people in particular are saving for their pensions: three in ten, compared to two in ten Walloons. In Brussels, 12.8 per cent of taxpayers are saving for their pensions.
According to the newspapers, the federal government is reportedly preparing measures to make pension savings more attractive by reducing costs and increasing transparency.
Illustration © BELGA PHOTO LAURIE DIEFFEMBACQ
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