As of Jan. 1, 2024 - in the context of the budget review - further savings are planned regarding the so-called "target group reduction for first hires." Until recently, this target group reduction made it possible for a new employer to enjoy a nice "NSSO discount" for your first six hires.
As of Jan. 1, 2024, however, this will change:
- The NSSO discount for a first hire is capped at EUR 3,100 per quarter.
- The discounts for a fourth, fifth and sixth hire disappear.
Current Arrangement
Today, as a start-up employer, you can claim a reduction in your NSSO employer contributions for the first six hires.
The number of quarters and the reduction amount differ depending on whether the employee is a first, second, third, fourth, fifth or sixth employee.
A brief overview of the current arrangement can be found below:
| 1ste employee | 4,000 EUR for the entire employment period | ||
| 2the employee | EUR 1,550 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
| 3the employee | EUR 1,050 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
| 4the employee | EUR 1,050 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
| 5the employee | EUR 1,050 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
| 6the employee | EUR 1,050 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
Changes as of 2024
From Jan. 1, 2024, the scheme below will apply:
| 1ste employee | EUR 3,100 for the entire employment period | ||
| 2the employee | EUR 1,550 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
| 3the employee | EUR 1,050 for first 5 quarters | EUR 1,050 during quarter 6 to 9 | EUR 450 during quarter 10 to 13 |
The limitation of the reduction amount for the first employee will also apply to the already ongoing target group reductions. Whether you hire your first employee before or after Jan. 1, 2024, does not matter much in this case.
However, if you are considering hiring a fourth, fifth or sixth employee in the near future, do so best before the end of this year.
If you hire a fourth, fifth and/or sixth employee before January 1, 2024 and apply for a target group reduction for this, these reductions will continue to apply for the remaining period according to the existing rules and amounts. Thus, the abolition of the NSSO reduction for a fourth, fifth and sixth employee has no impact on ongoing reductions.
The math is quick: the flat discount amount for the fourth, fifth and sixth employees is currently EUR 1,050 per quarter for the first nine quarters, followed by EUR 450 per quarter for the next four quarters. So over a period of 13 quarters, you can enjoy a total discount of EUR 11,250 per employee!
So it may certainly still be worth considering - if you don't already have six employees - bringing some additional workers on board before the end of 2023. As of January 1, 2024, you may miss out on a nice NSSO rebate for these hires.
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