First hires: what changed on 1 July 2026
David Tanoh, Employment Law Advisor
In brief. 1st employee: €2,000 per quarter instead of €3,100. 2nd to 5th: €1,000 per quarter for three years. The 4th and 5th ranks are back.
An employer hiring their first employee benefits from a reduction in employer’s contributions. The scheme has been in place for years, but it was revised on 1 July 2026.
What has changed
| Rank | Before July 2026 | Since July 2026 |
|---|---|---|
| 1st employee | €3,100 per quarter, no limit | €2,000 per quarter, no limit |
| 2nd and 3rd | Degressive, 13 quarters | €1,000 × 12 quarters |
| 4th and 5th | Abolished | €1,000 × 12 quarters |
The twelve quarters are counted within a twenty-quarter window from the date of employment. The reduction to €2,000 also applies to the first employees already in post as at 1 July: the previous amount is not maintained.
Three things to check
The reduction is linked to a rank, not to an individual. Each quarter, it can be applied to the employee with the highest employer’s contributions. A social secretariat that leaves it on the first employee hired – a part-time worker – when a full-time employee has since been hired, is costing the employer money.
The 4th and 5th ranks are open for hires from 1 July 2026 onwards. If nothing appears on your return, no one has applied for it.
The ‘new employer’ condition is assessed strictly. No staff in the preceding twelve months, excluding students, apprentices and flexi-job workers. A technical operating unit shared with another company may invalidate the entitlement.
The amounts quoted are those published by the ONSS for the third quarter of 2026. Before taking any action, they must be checked against the administrative instructions for the relevant quarter.