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Calls to make overtime tax-exempt

12:27 13/06/2013

The secretary of state for public service, Hendrik Bogaert (pictured), wants overtime to be exempt from tax. "Those who want to work overtime should be able to do so without limit, in a system where gross is equal to net," he says in De Tijd this morning. "It would only apply to days of eight hours minimum," he adds. Bogaert believes that action is needed to tackle high wage costs, but refuses to consider the German system of 'mini-jobs'. "This kind of job does increase competition but is socially unacceptable," he says. According to him, a tax exemption for overtime work could boost the economy without creating a financial burden for the state. His party, the CD&V [Flemish Christian-Democrats], plans to develop a strategy to Flanders to act alone on wage costs. "If we want to reduce labour costs, it takes a lot of resources," De Tijd reports, quoting finance minister Koen Geens. "The federal government should then consider, along with the regions, how to finance the reduction of overall labour costs." Flanders’ Minister-President Kris Peeters yesterday presented a plan of action to prime minister Elio Di Rupo.

Written by The Bulletin