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The Royal Decree of 5 September 2025, published in the Belgian State Gazette on 15 September 2025, announces the abolition of the system of unemployment with company allowance (UCA), previously known as “bridging pension”, except for the regime of UCA on medical grounds. Transitional measures are provided to allow 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 will be allowed in most UCA schemes. The general UCA scheme from the age of 62 is abolished as from 1 April 2025. Several other schemes are abolished as from 1 July 2025, more in particular UCA at the age of 60 (which was foreseen in case of arduous jobs, night work, construction sector or long careers). The UCA scheme for companies in difficulty or restructuring is 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, which is at this moment 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 without changes 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 transitional measures. Employees retain their entitlement to UCA schemes, provided they fulfil the following requirements:
- General scheme: employees dismissed before 1 April 2025 and who fulfil the age (62 years) and career requirement (40 years) by 30 June 2025;
- Long career: employees dismissed before 1 July 2025 and who fulfil the age (60 years) and career requirement (40 years) by 30 June 2025;
- Arduous job: employees dismissed before 1 July 2025 and who fulfil the age (60 years) and career requirement (35 years) by 30 June 2025;
- Night work/construction/arduous job: employees dismissed before 1 July 2025 and who fulfil the age (60 years) and career condition (33 years) by 30 June 2025;
- Company in difficulty or restructuring: employees who fulfil the age (60 years) and career requirement (10 years in the sector/ 20 years in the company), and where the recognition as a company in difficulties or restructuring occurred before 1 May 2025.
Key message
The bridging pension regime is finally abolished. New entries into the UCA system are no longer allowed. However, for older, disabled employees or employees with serious physical problems the specific regime of medical UCA stays in place. For employees who were already dismissed during the first half of this year, the transitional measures must be checked to determine whether they are entitled to UCA.
Authors:
Inger Verhelst, Lawyer – Partner at Claeys & Engels
Jana Byl, Lawyer at Claeys & Engels
