On 15 September 2025, the Royal Decree of 5 September 2025 was published in the Belgian State Gazette. This Royal Decree constitutes a crucial step in the implementation of the federal coalition agreement of 31 January 2025, which announced the abolition of the system of unemployment with company allowance (UCA). The Royal Decree definitively confirms that no new entries into the UCA schemes are allowed, with the exception of the UCA on medical grounds. At the same time, the Royal Decree provides for transitional measures allowing employees to retain their entitlement to UCA.
Context
The federal coalition agreement of 31 January 2025 had already announced the abolition of the unemployment with company allowance system (UCA). For a long time, it remained unclear how and when this abolition would be effectively implemented. The Royal Decree of 5 September 2025 now provides clarity.
The different UCA schemes: maintained or abolished?
The Royal Decree of 5 September 2025 confirms that no new entries are allowed in most UCA schemes. Specifically, the general UCA scheme from the age of 62 (the standard scheme) was abolished as from 1 April 2025. Several other schemes were abolished as from 1 July 2025, namely UCA at age 60 (arduous jobs, night work, construction sector, long careers). The UCA scheme for companies in difficulty was abolished as from 1 May 2025.
By way of exception, the UCA scheme on medical grounds remains in place. This scheme is intended for recognised disabled employees or employees with recognised, serious physical problems. They can still enter the UCA scheme on medical grounds, provided that they are at least 58 years old at the end of their employment contract and can prove a professional career of at least 35 years. The age requirement must be met within the validity period of the collective labour agreement that governs this scheme, namely CBA no. 165. This CBA was valid until 30 June 2025, but has since been extended unchanged until 31 December 2025. The Royal Decree confirms that all CBAs that extend CBA no. 165 unchanged also allow an employee to still enter the UCA scheme on medical grounds.
For the UCA schemes that were abolished, the Royal Decree still provides for the following transitional measures:
UCA – General scheme
- Age: 62 years
- Career: 40 years
- Abolished or maintained since Royal Decree? Abolished as of 1 April 2025
-
Transitional regime:
Maintained if:- Dismissal before 1 April 2025
- Conditions fulfilled by 30 June 2025
UCA – Long career
- Age: 60 years
- Career: 40 years
- Abolished or maintained since Royal Decree? Abolished as of 1 July 2025
-
Transitional regime:
Maintained if:- Dismissal before 1 July 2025
- Conditions fulfilled by 30 June 2025
UCA – Arduous job
- Age: 60 years
- Career: 35 years
- Abolished or maintained since Royal Decree? Abolished as of 1 July 2025
-
Transitional regime:
Maintained if:- Dismissal before 1 July 2025
- Conditions fulfilled by 30 June 2025
UCA – Night work / Construction / Arduous job
- Age: 60 years
- Career: 33 years
- Abolished or maintained since Royal Decree? Abolished as of 1 July 2025
-
Transitional regime:
Maintained if:- Dismissal before 1 July 2025
- Conditions fulfilled by 30 June 2025
UCA – Medical reasons
- Age: 58 years
- Career: 35 years
- Abolished or maintained since Royal Decree? Maintained
- Transitional regime: CBA no. 173 of the NLC
UCA – Company in difficulty or restructuring
- Age: 60 years
-
Career:
- 10 years in the sector, or
- 20 years in the company
- Abolished or maintained since Royal Decree? Abolished as of 1 May 2025
-
Transitional regime:
Maintained if:- Start date of the recognition of the company as a company in difficulty or undergoing restructuring before 1 May 2025
The replacement obligation
If UCA is granted, the employer is in principle required to replace the employee benefiting from UCA with an unemployed jobseeker for a period of at least three years. The Royal Decree confirms that this replacement obligation remains in force.
Key message
Half a century after the introduction of the so-called “bridging pension scheme”, the system has now been abolished.
Please note that no new entries into the UCA system are allowed anymore. There is one exception to this rule, namely for older, disabled employees or employees with serious physical problems. For employees who were already dismissed during the first half of this year, the transitional measures must be checked to determine whether they can retain their entitlement to UCA.
