Belgium’s Flexi-Job System Under Fire as Study Shows Job Displacement

Belgium’s flexi-job system, long celebrated as a flexible solution for workers and employers alike, is facing its most serious political challenge yet. A joint study by the Belgian Court of Audit (Rekenhof) and the Federal Planning Bureau has provided the first concrete evidence that these tax-advantaged flexible work arrangements may be displacing regular employment in the hospitality sector. The findings have ignited a heated debate within the governing Arizona coalition, with Budget Minister Vincent Van Peteghem warning the system is “spiraling out of control” while Finance Minister Jan Jambon expresses openness to reviewing the rules.

Background: What Are Flexi-Jobs?

Introduced in 2015 to combat black-market work in the hospitality sector, flexi-jobs allow workers employed at least 80% time (4/5), or pensioners, to earn supplementary income with virtually no tax burden. Workers pay no income tax or social security contributions on flexi-job earnings up to €18,440 per year in 2026, while employers pay a 28% social security contribution. The system proved popular and was gradually expanded to bakeries, supermarkets, healthcare, and education before being extended to virtually all economic sectors on July 1, 2026.

Today, over 250,000 Belgians work flexi-jobs — a 14% increase year-over-year — with more than 8 in 10 flexi-jobbers residing in Flanders, according to VRT NWS.

The Displacement Evidence

The new study from the Court of Audit and Federal Planning Bureau marks a turning point in the debate. For the first time, researchers have documented that flexi-jobs are eating into regular employment in hospitality. The regular work volume of flexi-jobbers has dropped by 3 to 5 percentage points, driven by two dynamics: workers reducing to 4/5 time and filling the remaining day with a tax-advantaged flexi-job, and employers hiring flexi-jobbers instead of regular staff.

As VRT NWS reported, labor economists have long debated whether flexi-jobs create net new employment or simply displace existing jobs. Prof. Stijn Baert of Ghent University noted that “the disadvantage lies with the person standing next to the flexi-jobber doing the same work but paying normal contributions,” highlighting the fundamental fairness question at the heart of the system.

Political Fallout: A Coalition Divided

The study has exposed sharp divisions within Belgium’s five-party Arizona coalition government, which faces a severe budget crisis requiring €7.7 to €10 billion in consolidation by 2029.

Budget Minister Vincent Van Peteghem (CD&V) has been the most vocal critic. In an interview with De Standaard, he warned that “it was never the intention to make flexi-jobs the cheapest form of labor and thereby put pressure on the entire labor market.” He added that “the growing number of flexi-jobs is becoming the new long-term sick. It is spiraling out of control. In this way, our welfare state will not remain affordable,” as reported by Business AM.

Van Peteghem highlighted a particular absurdity: flexi-jobbers build pension rights without paying social security contributions, while working students pay contributions but receive no pension benefits — a contradiction he called “absurd.”

Finance Minister Jan Jambon (N-VA), speaking on the HLN podcast ‘Het Rapport van de Wetstraat’ on July 15, adopted a more conciliatory tone. He acknowledged that “a criticism that can be made of flexi-jobs is that it encourages people to work 4/5 time, and then supplement that with a flexi-job,” but noted that this applies to only 17% of cases. “That’s something that might need to be looked at,” he said, as covered by Business AM.

Jambon defended the recent expansion to all sectors, arguing that policy should not be reversed immediately after implementation, and pointed out that 83% of flexi-jobbers already work full-time.

Fiscal Sustainability Concerns

The financial implications are significant. Flexi-jobs represent approximately €1 billion in wage mass, with social security losing an estimated €130 million annually in employee contributions. Think tank Minerva projects this figure will rise to €479 million per year by 2029 — a meaningful sum against the government’s €10 billion consolidation target.

Labor economist Prof. Ive Marx of the University of Antwerp warned that “the pendulum is really swinging too far,” noting that earning €18,000 tax-free represents substantial revenue the state is forgoing. “It is very popular. People like doing it. Then it becomes politically very difficult to roll that back,” he told VRT NWS.

Union and Stakeholder Reactions

The Christian trade union ACV has been among the strongest critics. President Ann Vermorgen stated: “Flexi-jobs increasingly displace regular jobs, hollow out social security and cost the treasury millions. Creating different types of workers for the same work is not only unjust, the government is also destroying our entire welfare system with it,” as reported by ACV.

The ACV also points to other tax-advantaged arrangements — such as management companies and student labor — arguing that the government must address the broader structural issues rather than targeting flexi-jobs alone.

On the other side, SME organization Unizo strongly supports the system, arguing that for many businesses, flexi-jobs represent “the difference between being able to serve customers or having to turn them away.”

What’s Next

The debate unfolds against a tight political calendar. The federal government is scheduled for a budget conclave in September 2026, with a deadline for submitting the budget to the European Commission in October. With the IMF and National Bank warning about rising sovereign debt, and Prime Minister Bart De Wever likening the situation to “the Titanic having already hit the iceberg,” pressure is mounting for concrete action.

Jambon has signaled that there are still months to determine the best path forward, suggesting administrative refinement rather than wholesale reform. But with Van Peteghem pushing for more fundamental changes and the first empirical evidence of job displacement now on the table, Belgium’s flexi-job system — once a relatively uncontroversial labor market tool — has become a central battleground in the country’s broader fiscal and social policy debate.

The key question remains: can Belgium find a balance between labor flexibility and fiscal sustainability, or will the flexi-job system become another casualty of the country’s deepening budget crisis?