The rules surrounding overtime have become increasingly complex in recent years. With numerous temporary regulations and exceptions at the industry level, it is not always easy as an employer to keep an overview.
The new federal coalition agreement led by Prime Minister De Wever aims to change this. With simplification and structural extension of favorable overtime, companies should be given more flexibility.
But what does this mean specifically for your business? In this article, we take a closer look at the current overtime regulation and consider what changes the coalition agreement envisions.
UPDATE (June 17, 2025)
The current arrangement for certain favorable overtime expires on June 30, 2025. It remained to be seen whether the De Wever government could transpose its plans into legislation in time so that there would be no gap between the end of the current regime and the start of the new regulations. Unfortunately, transposition into legislation was not achieved in time.
It was announced, however, that the huidige regeling t.e.m. 31 december 2025 verlengd becomes. So until the De Wever government's plans are effectively passed into law, the current arrangement can continue to be used.
What are the current regulations around overtime?
In principle, when an employee performs more hours than provided for in his normal schedule, he is entitled to catch-up rest ("recup") and sometimes on overloon. Overloon is only required to pay out for overtime in excess of 9 hours per day or 40 hours per week.
The (excess) wages paid for these "classic" overtime hours are normally considered ordinary wages: thus, the usual social security contributions and withholding taxes are deducted from them.
However, there are different and more favorable arrangements for a select number of overtime hours. Currently, you can up to 300 favorable overtime hours per year perform. These 300 hours consist of:
120 relance hours
Relance overtime is overtime that is are fully exempt from social security and withholding taxes.
So these are 'net overtime': of each gross overtime, the employee sees the full amount appear in his account. Furthermore, no catch-up rest or overtime pay is due for this type of overtime.
Prior to the performance of these overtime hours, however, you as an employer must have a written consent about this overtime with your employee. This agreement is valid for a maximum of 6 months and can be renewed each time thereafter.
Please note that this net overtime system is temporary: for now, it will remain in effect until June 30, 2025.
180 overtime with tax discount
Although NSSO contributions are due for these 180 hours, there is a nice tax break for both employer and employee.
Within these 180 hours, there is a distinction between voluntary and involuntary overtime, each with their own conditions.
| 100 "regular" voluntary overtime hours | 80 "ordinary" involuntary overtime hours |
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In principle, this tax-advantaged arrangement applies to 130 overtime hours per year. In recent years, this was temporarily increased to 180 hours per year, each time for a period of two years. For now, this extension continues until June 30, 2025.
What will change with the new coalition agreement?
As of July 1, 2025 the regulation below should take effect, subject to change That the coalition agreement will be enacted into law in a timely manner.
UPDATE (June 17, 2025)
Since the plans of the De Wever government were not translated into legislation in time, the new scheme will inoperative take effect on July 1, 2025. In anticipation blijft de huidige regeling t.e.m. 31 december 2025 van kracht, as explained above.
Specifically, employers also after June 30, 2025 can continue to use the existing 180 voluntary overtime hours, as well as the 120 relance hours.
We will certainly keep you informed of further developments in this regard.
The De Wever government wishes to significantly reduce the number of favorable overtime hours on an annual basis. increase from 300 to 420 hours and aims at a permanent and permanent system of it.
Specifically, the coalition agreement provides for the following changes:
1. Doubling of number of relance hours.
The number of relance hours doubles from 120 to 240 hours per year. The conditions remain the same: no overtime or catch-up rest is due and wage cost for the employer = gross = net for the employee.
A written agreement with the employee continues to be required. What is new is that this agreement is now required for indefinite period can be entered into, with a termination option every six months.
2. Permanent arrangement for 180 overtime hours with tax reduction
The temporary arrangement for 180 overtime hours with tax rebate will be permanent made. Thus, the temporary extensions of past years will no longer be needed.
Since the coalition agreement also provides for an increase in voluntary overtime, the distribution within these 180 hours is adjusted slightly to:
- 120 "regular" voluntary overtime hours
- 60 "regular" involuntary overtime hours (e.g., for extraordinary increase in work or unforeseen necessity)
The other conditions and modalities under which such overtime may be performed remain unchanged.
3. Reservations for full-time employees.
The coalition agreement provides that the use of voluntary overtime is reserved primarily for full-time employees. If you work part-time, you would only be eligible for this if you have been working part-time for at least 3 years and there is a temporary increase in work.
4. Extra flexibility for the hospitality industry.
For employers in the hospitality industry working with a registered cash register system, the cap is raised to 450 voluntary overtime hours per year. Of these, 360 would be considered relance overtime, so the wage cost is equal to gross pay and is also net pay.
Specifically, what does this mean for your business?
The announced reform makes it easier to adjust quickly and efficiently at peak times or in case of temporary work pressure, without additional payroll costs or complex administration. At the same time, the structural anchoring of these rules gives you more legal certainty and predictability as an entrepreneur.
Caution: hhe coalition agreement contains the new government's plans, but they have yet to be translated into concrete legislation. We will keep you informed as soon as there is more clarity.
Until then, the existing arrangements for tax-favored overtime, relance overtime and net overtime in the hospitality industry will remain in effect.
Do you have questions about the application of overtime in your business?
Contact our experts, we are here for you!
