BRUSSELS

Belgium aims to save nearly half a billion euros from its federal civil service by 2029, the government announced in its latest budget plans.

The government plans to reduce spending through a partial hiring freeze and higher employer pension contributions for newly appointed permanent civil servants, according to the Belga news agency.

Under the hiring freeze, departments will be allowed to replace only two out of every five staff who leave, until they reach their individual savings targets. Security and justice services, including the police, defense, justice, home affairs, and the immigration office, will be exempt.

The measure is expected to save around €100 million ($117 million) this year, rising to €175 million by 2029.

In addition, federal services and state-owned companies will gradually increase employer contributions to cover pensions for new permanent staff.

The contribution rate will rise from 9.5% this year to 38% by 2029, generating an extra €284 million for the federal pensions service.

While the change strengthens the pension system, the cost will fall on the departments themselves, encouraging the hiring of more contractual rather than permanent staff.

Combined, the two measures are projected to deliver €459 million in savings by 2029, part of the €9.2 billion the government plans to save through its wider budget strategy.