Reduction in Employer Contributions by an Increase in the MARIBEL Allowance
Reduction in Employer Contributions by an Increase in the MARIBEL Allowance
In the light of the deteriorating economic situation and the difficulties faced by those sectors most exposed to international competition, the Belgian Government has decided to reduce employers' social security contributions in such sectors. Broadly speaking this applies to manufacturing industry. The reduction is brought about by a flat-rate increase of FB 4,375 per trimester in the MARIBEL subsidy (cf. BIR-B, i.2, and iMi 42) for manual workers in the sectors concerned. This represents a cut of more than 1.5% in the overall labour costs of the workers involved. Because of its flat-rate nature, the reduction in labour costs brought about by MARIBEL is proportionately greater for the lowest wage and salary groups; thus it serves to stimulate job creation for relatively low-skill workers.
At the same time, the distinction made between small and medium-size enterprises to determine the extent of the reduction under the MARIBEL scheme is to be maintained. The reduction for small and medium-sized enterprises (i.e. that for the first five workers in firms with a workforce of less than 20 workers) is raised from FB 2,825 to FB 3,000 per trimester for firms not belonging to the exposed sectors. This offers small firms with a high labour intensity, which still represent a considerable job-creating potential, specific and additional support.
From 1 July 1993 the MARIBEL reductions are as follows:
- in sectors exposed to international competition:
· basic allowance: FB 6,250 per trimester and manual worker
· for the first five workers in enterprises employing on average less than 20 workers: FB 7,200 per trimester.
- in the other sectors benefiting from the operation MARIBEL
· basic allowance: FB 1,876 per trimester and manual worker
· for the first five workers in enterprises employing on average less than 20 workers: FB 3,000 per trimester.
The additional financial resources required for the MARIBEL measure are to be obtained from a new tax on energy consumption.
EU – European Commission DG EMPL/A/2 J
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