As part of the budgetary measures, the target group reduction for first-time hires—a discount on employers’ contributions to the RSZ—was significantly revised.
From July 1, 2026 The program will be simplified, revised, and expanded to include additional hires. In this article, you’ll learn how these changes will affect your labor costs.
What exactly is changing?
The existing system will be simplified and restructured. For example, the maximum tax credit for the first employee will be reduced to €2,000 per quarter. The sliding-scale system for the second and third employees will be replaced by a uniform reduction. At the same time, a discount will be reintroduced for the fourth and fifth employees.
Specifically, the changes are as follows:
- €1,550quarterly · quarters 1 through 5
- €1,050quarterly · quarters 6 through 9
- €450quarterly · quarters 10 through 13
- €1,050quarterly · quarters 1 through 5
- €1,050quarterly · quarters 6 through 9
- €450quarterly · quarters 10 through 13
What about my current target audience reductions?
The transition to the new system depends on the employee to whom the discount applies.
Do you already have a target group reduction for your first employee today? If so, it will take effect on July 1, 2026 automatically capped at €2,000 per quarter, even if the discount was granted earlier.
Current discounts will continue to be applied under the previous, degressive scheme—so nothing will change for existing hires nothing. However, for new hires starting on or after July 1, 2026, the new system with a uniform reduction will apply.
Are you planning to hire a fourth or fifth employee? If so, starting July 1, 2026, you can Apply another target group reduction, which wasn't possible before.