The Belgian Chamber of Representatives recently voted a comprehensive reform of voluntary overtime regulations into law. The new system of voluntary overtime, which applies retroactively as of 1 April 2026, replaces the previously applicable combination of a structural system of voluntary overtime and a temporary system of ‘relance’ overtime hours with an expanded single, permanent solution. This allows companies to respond more flexibly to labour market challenges whilst offering a favourable tax and social security treatment to workers.
The previous voluntary overtime framework
Belgium’s voluntary overtime framework was introduced in 2017 to address the increased demand for working time flexibility. Employers could use voluntary overtime under written individual agreements with workers, valid for six months and renewable. The structural quota was set at 120 hours per employee per calendar year, subject to overtime premiums, social security contributions and withholding tax, but exempt from compensatory rest requirements. The first 25 hours were also neutralised for internal working time limit calculations. To address the economic fallout of the COVID-19 pandemic, an additional temporary system of ‘relance’ (recovery) hours was introduced in 2023 and extended several times, most recently until 31 March 2026. This parallel system permitted an additional 120 voluntary overtime hours annually with more favourable terms: no overtime premiums, full exemption from social security contributions and withholding tax (‘gross equals net’) and no impact on the calculation of the internal working time limit. In recent years, the two systems combined thus allowed up to a total of 240 hours of annual voluntary overtime per employee.
The new system: enhanced flexibility as from 1 April 2026
The new single, permanent system of voluntary overtime expands on the previous system(s) and provides an annual quota of 360 hours per employee, applicable across all sectors. Within this 360-hour quota, 240 hours don’t require any overtime premium and are fully exempt from social security contributions and withholding tax. The remaining 120 hours, however, are subject to regular overtime premiums, withholding tax and social security contributions. For the hospitality sector (Joint Committee no. 302), the new system provides even greater flexibility. The quota increases to 450 hours annually, with 360 of these hours benefiting from the no-premium and social security- and tax-exempt treatment. Voluntary overtime hours also don’t count towards the internal working time limit. As was already the case for recovery hours under the previous regime, this ensures that using voluntary overtime doesn’t restrict an organisation's ability to use other forms of overtime flexibility. In addition, the administrative burden is reduced; individual written agreements are now valid for one year rather than six months and unless either party terminates the agreement beforehand, it renews automatically on an annual basis. Note that employers can’t compel workers to accept such agreements nor subject them to unfavourable treatment for refusing.
Restrictions for part-time workers
The new legislation introduces specific limitations for part-time workers. Part-time employees may only perform voluntary overtime when there is a temporary increase in work and provided they have been working part-time for at least three years. However, as under the previous regime, voluntary overtime for part-time workers only applies once the individual exceeds the full-time weekly or monthly working time limits, not their specific part-time limits. arrangements. Workers who are working part-time in a system of career break are also explicitly excluded from voluntary overtime, reflecting the specific purpose and context of career break arrangements. However, transitional protection applies for existing arrangements. Part-time workers who already have a voluntary overtime agreement in place with their employer at the moment the act introducing the new system is published in the Belgian Official Gazette won’t be subject to these new restrictions. This provision acknowledges the legitimate expectations of workers and employers who entered into agreements under the previous rules. The legislation also explicitly excludes workers who have reduced their working hours under career break schemes from accessing voluntary overtime. This exclusion reflects the specific purpose and context of career break arrangements.
Entry into force
The new system enters into force retroactively as from 1 April 2026 and provides for several transitional measures. The first one pertains to the impact of the previous voluntary overtime systems. Indeed, recovery overtime hours worked during the first quarter of 2026 will count towards the 360-hour annual quota for 2026. Secondly, any agreement for voluntary overtime concluded before 1 April 2026 and the duration of which extends beyond that date will automatically convert to an agreement under the new regime and remain valid until its original expiration date. Equally, any six-month agreement for voluntary overtime concluded between 1 April 2026 and the date on which the act introducing the new system is published in the Belgian Official Gazette will remain valid as agreement to perform voluntary overtime in the new system. After expiration, a new agreement must be concluded according to the new rules.
Key takeaways for organisations
This reform represents a significant expansion of voluntary overtime flexibility in Belgian employment law. The new system consolidates the previous structural and recovery hours into a single quota of 360 hours, with 240 of those hours benefiting from favourable tax and social security treatment. The extended validity period for agreements and automatic renewal mechanism significantly reduce administrative complexity.
Author:
- Pascale Moreau, Partner at PwC Legal
