Coalition agreement: update
One and a half months after the announcement of the federal coalition agreement, the first measures are being taken. Below we provide a brief overview of the most recent initiatives.
As in our first summary of the coalition agreement (click here), we limit ourselves to measures that impact the labour market.
1. First measures federal coalition agreement approved
On 27 March 2025, the parliament approved the act to increase the limit for student work to 650 hours per year (instead of 475 hours/year). This change will take effect retroactively on 1 January 2025.
In addition, the maximum amount a student can earn extra without this impacting his/her parents' tax liability, will be doubled to 6.840 EUR (basic amount 3.000 EUR).
2. Group of Ten
The Group of Ten – the consultative body between employers and trade unions – has presented an agreement to the Minister of Labour, David Clarinval. This agreement contains proposals on various issues:
- Abolition early retirement: Trade unions and employers agree to the abolition of the system of unemployment with company allowance (SWT), but request for the system being maintained until 30 June 2025. This is not in line with the coalition agreement, which wanted to introduce the abolition as of 31 January 2025. However, the Council of Ministers has now decided to provide for a postponement until 30 June 2025. This is the case for the specific SWT schemes, e.g. hard labour, night work or long career. For the classic SWT according to collective labour agreement no. 17, this would mean that employees who were dismissed before 1 April 2025 and who fulfil the age and seniority conditions, can continue to enjoy the SWT regime on 30 June 2025.
- End-of-career time credit: Subject to certain conditions, employees aged 55 or over can reduce their working hours through end-of-career time credit. The coalition agreement wants to maintain this, but modify the career requirement. The Group of Ten is asking for the current conditions to be respected until 30 June 2025.
- Wage bonus (CLA 90): The Group of Ten requests that the federal inspection services adhere to the unanimous advice of the National Labour Council of 22 February 2022 when conducting checks on the wage bonus (CLA 90). This advice contains a thorough explanation of the conditions/parameters to be observed for the wage bonus and can significantly increase legal certainty.
- Federal Learning account (FLA): The government intends to abolish the FLA definitively. In anticipation of this, the social partners are asking for its enforcement to be postponed until at least 1 July 2025. An act that provides for a postponement until 30 August 2025 is currently pending.
Lydian's employment team naturally monitors the legislation closely. We will keep you informed of the necessary action points through e-zines and webinars.
Meanwhile, if you have any questions, be sure to contact one of the employment team's lawyers.
