Brussels: The Belgian government is poised to implement significant budget cuts, amounting to nearly half a billion euros, targeting the federal civil service over the upcoming years. The cost-saving measures are outlined in official budget documents and are primarily focused on limiting staff replacements and increasing employer pension contributions for new permanent officials.

According to Emirates News Agency, the first measure involves a strategic hiring freeze, allowing government departments to replace only two out of every five departing employees until they achieve their specific savings targets. Crucially, this rule exempts essential security and justice services, including the police, Defence, Justice, Home Affairs, and the Immigration Office. This partial hiring restriction is projected to save approximately pound 100 million this year, with expectations to reach pound 175 million by 2029.

The second measure pertains to pension contributions for newly appointed permanent (statutory) civil servants. Federal services and state-owned enterprises will gradually increase their employer contributions on salaries to accommodate future pension liabilities. This contribution rate will commence at 9.5 percent this year and is slated to escalate to 38 percent by 2029.

The federal pensions service is anticipated to receive an additional pound 100 million in the coming year, with projections of pound 284 million by 2029. Combined, these measures are expected to generate savings of pound 459 million by 2029, contributing to the Belgian government's broader objective of securing pound 9.2 billion in budgetary savings.