New payroll withholding from November: a small gain for many, less for some families

Employees will see the first effects of the personal income tax reform on their November payslip. Employers will then withhold tax under new rules, leaving many workers with slightly more take-home pay, Het Nieuwsblad reports. The royal decree behind the change was published in the Belgian Official Gazette on 2 October, payroll services firm Partena Professional writes.

In practice, the tax-free allowance and the reduction for one or two dependent children go up, while the marriage quotient goes down. The outcome therefore varies widely between households. HR services provider Securex calculates that a single parent with one child earning 3,200 euros gross gains 14.47 euros a month, while a sole earner on 5,000 euros gross with a partner without income and four children takes home 29.90 euros a month less.

Paris Match Belgique, citing L'Echo, already pointed out in early October that the adjustment could go either way. Pensions and unemployment benefits with an employer top-up are not covered by this year's change, according to Partena.