Hiring and Employment Subsidies for Flemish Employers

Employers in Flanders have access to a range of subsidies and incentives designed to reduce the cost of hiring, particularly for specific target groups. Understanding these programs can significantly reduce employment costs and create opportunities to grow your team more affordably.

The main categories of support include target group reductions on social security contributions, activation measures through VDAB, training subsidies for new hires, and various sector-specific employment incentives.

Unlike grant programs that require project applications, many employment subsidies are semi-automatic. If you hire someone from a qualifying target group, the reduction in employer social security contributions applies without a complex application process.

For a comprehensive overview of all available business support in Flanders, check our grants explorer and filter by employment-related programs.

The doelgroepvermindering system provides reductions on employer social security contributions when hiring people from specific target groups. Since the sixth state reform, Flanders manages its own target group policy, which differs from the Brussels and Wallonian systems.

Key target groups in Flanders include young workers under 25 without higher education qualifications, older workers over 55, people with an occupational disability, and long-term unemployed individuals returning to the workforce.

The reductions can be substantial. For qualifying hires, employers can save several thousand euros per quarter on social security contributions. The exact amount and duration depend on the target group and the specific circumstances of the employee.

The application process is relatively simple. When you register a new employee through the DIMONA declaration, the social security office checks whether target group reductions apply. In many cases, the reduction is applied automatically based on the employee characteristics.

VDAB, the Flemish Employment and Vocational Training Service, runs activation programs that benefit both job seekers and employers. For employers, the main advantage is access to candidates who come with financial incentives attached.

The werkplekleren or workplace learning programs allow employers to take on candidates for a training period during which VDAB covers part of the compensation. This gives employers the opportunity to evaluate candidates before committing to a full employment contract.

IBO (Individuele Beroepsopleiding in de Onderneming) is one of the most popular VDAB activation measures. It provides a structured on-the-job training program where the employer trains the candidate for a specific role while VDAB contributes to the cost during the training period.

After successfully completing an IBO, the employer is expected to offer a regular employment contract. The advantage is that the employee arrives already trained for the specific role, reducing the typical onboarding costs and risks. Ask Lucas, our AI grants assistant, about VDAB programs for your situation.

Beyond hiring incentives, Flemish employers can access subsidies for training existing and new employees. The KMO-portefeuille covers training costs from registered service providers, with subsidies of up to 30 percent for small enterprises.

Sectoral training funds provide additional support for sector-specific skills development. Many sectors in Flanders have collective agreements that include provisions for funded training, often administered through sector-specific training organizations.

For employers planning to upskill their workforce in areas like digital transformation, sustainability, or specialized technical skills, combining VDAB support with KMO-portefeuille can create a comprehensive training strategy at reduced cost.

Companies undergoing significant restructuring or transformation can also access strategic transformation support from VLAIO, which includes provisions for retraining affected employees. Browse our eligibility quiz to find matching programs.

Several sectors in Flanders benefit from targeted employment incentives. The social economy sector has specific support programs for organizations employing people with significant barriers to the regular labor market.

The care and healthcare sector offers incentives for training and employing healthcare professionals, reflecting the structural shortage in these professions. Employers in these sectors should check with their sector federation for the latest available programs.

The technology and STEM sectors benefit from broader incentives for hiring researchers and technical staff, particularly through federal R&D employment measures that complement the Flemish target group system.

Agricultural and horticultural employers have access to seasonal employment programs and specific incentive structures for temporary and migrant workers. These programs are designed around the unique employment patterns of the agricultural sector.

The first step is knowing what is available before you start hiring. Many employers discover incentives only after making a hire, missing the opportunity to factor subsidies into their recruitment planning.

When posting job vacancies, consider whether the role could be filled by someone from a target group eligible for doelgroepvermindering. Collaborating with VDAB on recruitment can connect you with candidates who come with financial incentives.

Keep administration clean from the start. Most hiring subsidies require proper registration, documentation, and sometimes specific contract terms. Ensuring these are in place from day one prevents problems with claiming subsidies later.

Finally, consider the cumulation possibilities. An employer might hire someone through a VDAB IBO program, benefit from doelgroepvermindering on social security contributions, and use KMO-portefeuille for additional training. These different programs often complement each other. Check our blog for more detailed guides.