The Belgian government has approved a measure that extends the second pillar of the pension system, the additional pension, to the self-employed, it has been announced.

According to The Brussels Times, the Minister for Pensions Daniel Bacquelaine and the Minister for the Self-employed Denis Ducarme revealed the decision to extend they pension system to self-employed workers on Friday 6 October 2017.

Until now only the employed and business leaders were permitted to accumulate a pension in addition to a statutory pension. The new rules will enable all citizens who are primarily self-employed, a total of 432,500 people, to make additional savings for their retirement. This will include assisting spouses, self-employed carers and those with supplementary self-employed status.

It has been decided that by respecting the 80 per cent tax limit, the self-employed will be able to benefit from a reduction of 30 per cent on contributions paid. Additional pension benefits are taxed at 10 per cent.

The bill proposing this amendment to the pension system will be presented to parliament before the end of the year, it was said.

The ministers noted that the extension of the pension system to the self-employed is a step toward harmonising the current pension regime in the country, The Brussels Times noted.

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