Recently, a royal decree has been published in Belgium, altering the social security regime for certain out-of-service compensation from 1 October 2013.
The range of compensation subject to social security contributions has been broadly extended. From 1 October 2013, the compensation that follows from the exercise of a non-compete clause, in execution of a non-compete/non-solicitation agreement concluded within 12 months after the termination of the employment contract, will be subject to social security contributions.
Also, the compensation related to the dismissal of protected employees and the client indemnity for sales representatives will be subject to social security contributions as from October 1, 2013. Protected employees for this purpose would be for example employees on maternity leave.
