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Belgium

Employer of Record Belgium

Global Expansion's Employer of Record services provide the ability to quickly grow, manage, and pay international teams, without the need for a local entity. Our award-winning tech platform plus integrated support services make hiring, managing and paying your global workforce a breeze.

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Hiring in Belgium

For companies that want to hire employees and run payroll in Belgium without first establishing a business entity or subsidiary, Global Expansion provides Employer of Record services (EOR Belgium).

Our EOR services streamline and simplify the global hiring process. We handle the core global HR tasks - compliance, contracts, payroll, global benefits, and more - so that you forgo hours of ongoing admin, human error, and risky compliance.

In Belgium, companies would historically establish a subsidiary or branch office to legally hire in that country. With Global Expansion, this step is no longer necessary. We have subsidiaries all over the world and therefore can legally hire on your behalf. The employees are ours only on paper and report directly to managers within your company.

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Labor Laws in Belgium

Employment laws in Belgium are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on employment laws in Belgium and Belgium policies here.

According to Belgium labor law, employment contracts are necessary for establishing the relationship between the employee and the employer. The conditions attached to the relationships are defined based on the type of contract established.

Employment Contracts

According to Belgium's labor laws, employment contracts are necessary for establishing the relationship between the employee and the employer. The conditions attached to the relationships are defined based on the type of contract established.

There are four (4) types of employment contracts for those working in Belgium.

  1. Blue-collar workers
  2. Sales representatives
  3. Domestic workers
  4. Employees

Depending on the duration of these contracts, there are four (4) contract options in Belgium.

  1. Open-ended
    • Considered a permanent contract and typically held for an indefinite period.
  2. Fixed term
    • Specifies which day or time the employee is needed to perform tasks. This schedule is set in advance to indicate upcoming events.
  3. Job-specific
    • Only specifies the work that needs to be carried out rather than the time by which it should be completed.
  4. Replacement
    • Conducted to replace an employee who has been suspended or dismissed by the company.

Employee Probation Period Belgium

  • The general probation period in Belgium was abolished in 2014 and is no longer allowed.
  • However, a probationary period is still possible for student contracts, temporary work and temporary agency work. For these contracts, the probationary period (the first three days of the contract) automatically applies and, therefore, does not need to be inserted into the written employment contract.

Annual Leave in Belgium

  • In practice, employees (white-collar) are entitled to 2 vacation days per complete worked month in the preceding year. That means 24 vacation days (six-days-a-week scheme) or 20 vacation days (five-days-a-week scheme) for a complete year in service (or of assimilated periods), i.e. a maximum of 4 complete weeks of paid leave in the scheme of a full-time working employee.
  • During their annual leave, the white-collar employees receive a “double holiday pay” in addition to their normal pay. The employer pays both the normal pay and the holiday allowance.

Public Holidays Belgium

There are 12 official holidays in Belgium. Two of them fall on a Sunday – Easter Sunday and Whit Sunday (Whitsun or Pentecost) – practically giving workers in Belgium legal rights to 10 public holidays.

Many companies allow employees to recoup public holidays if they fall on a Saturday or Sunday, even though this isn't mandatory.

Here’s the full list of  public holidays in Belgium:

New Year’s Days 1st January
Easter Monday 13th April
Labor Day 1st May
Ascension Day 21st April
Whit Monday 1st June
Belgium National Day 21st July
Assumption Day 15th August
All Saints Day 1st November
Armistice Day 11th November
Christmas Day 25th December

 

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Maternity Leave Belgium

  • Mothers can take up to 15 weeks’ maternity leave (or 19 weeks in the case of multiple births), receiving benefits equivalent to 82% of full salary for the first 30 days and 75% for the remainder (subject to a maximum amount currently set at €104.80 per day).
  • Mothers are allowed six (6) weeks of prenatal leave, five (5) of which are optional and can be taken after your baby’s birth, although one the week preceding delivery is a mandatory period of time off.
  • The nine (9) weeks of postnatal leave begin on the day of birth, or on the first working day after the birth.

Paternity Leave Belgium

  • Prenatal leave is a maximum period of six (6) weeks before the expected date of delivery:
    • Five (5) weeks are optional and can be taken after the birth;
    • The week immediately preceding delivery is a compulsory week of paternity leave.
  • Salaried who are fathers or co-parents are entitled to ten (10) days of paternity or birth leave (15 days for children born after 1st January 2021).
  • The paternity leave will further increase to 20 days by 01 January 2023.
  • At least nine (9) weeks must be taken after the birth and at least one (1) week must be taken before the date when the baby is due.
  • The first three (3) days of paternity leave are paid by the employer and the other seven (7) days are paid by the compulsory sickness and disability insurance scheme in the amount of 82% of his gross salary.

Belgium Sick Leave

In case of sickness or accident, the employee is entitled to statutory sick pay during the first 30 days of absence, payable by the employer.

The rate of the sick pay, based on the normal salary, depends on the nature of the contract (white- or blue-collar worker), and the length of his service to the employer).

  • White-collar workers receive 100% of their earnings for a month;
  • Manual workers receive
    • 100% of their earnings for the first seven days of incapacity;
    • 85.88% from the 8th to the 14th day of incapacity, or via a supplementary allowance;
    • From the 15th to 30th day: 25.88% of compensation not exceeding the ceiling set by the disability health insurance and 85.88% of the amount exceeding the ceiling.
  • The sickness insurance starts when the guaranteed salary period paid by the employer is over.
  • The compensation rate is 60% of earnings. The ceiling taken into account for the compensation is € 146,972 per day (for incapacities from 1 January 2020).
  • If you are still unable to work after a year, you will be entitled to an invalidity benefit.

Working Hours in Belgium

According to the Belgian Labor Law, a typical work week in Belgium is 38 hours, with a maximum of nine (9) hours per day and 45 hours per week.

Exceptions up to 11 hours per day and 50 hours per week are possible, but subject to strict regulation and mutual consent.

Daily working time must not go beyond eight (8) hours a day and must be performed between the hours of 6 am to 8 pm. Workers who perform no more than 5 ½ days a week shall work nine (9) hours daily.

Overtime in Belgium

Overtime work entitles the worker to be paid at least 50% extra wage during weekdays and 100% on Sundays and public holidays.

Termination of Employment in Belgium

Employment contracts are generally terminated through serving a notice period or the payment of an indemnity in lieu of notice. An employer does not require any authorization to dismiss an employee.

As part of the recent Belgian labor law reform, notice periods for blue- and white-collar employees are now aligned for employment contracts taking effect from 1 January 2014. These notice periods are fixed by law and only depend on the employee’s seniority.

Where an employment contract is terminated for serious cause, no notice period needs to be observed nor does any compensation in lieu of notice have to be paid.

Notice Period in Belgium

In Belgium, the notice period varies depending on the time worked on the company. For instance, if an employee has worked for a period of 6 months, the notice period is 2 weeks. If an employee has worked for more than 25 years, the notice period is 13 weeks.

Belgian employment law has historically differentiated between “blue-collar” manual laborers and “white-collar” office workers. However, since reform in 2014, the same statutory notice periods have applied to both categories, and they are based on an employee’s length of service, or seniority.

Severance Pay Belgium

  • Individual Dismissal: -
    • Both the employer and the dismissed worker have to choose between the notice period during which the employment contract is still running and the severance pay by stopping the contract immediately. In the latter case, the severance pay is equivalent to the wage and benefits multiplied by the duration of the notice period that should have been notified.
    • In the event of dismissal without a notice period, severance pay depends on the length of the notice period that should have been observed. For example, if the notice period is 3 months, severance pay shall be equivalent to 3 months’ salary.
  • Collective Dismissals: -
    • In addition to the unemployment benefits, workers affected by the collective dismissal are entitled to special severance pay.
    • The amount of this allowance is equal to half the difference between the net wage and the amount of the unemployment benefits the worker receives. The maximum gross salary value used for this calculation amounts to €3,144.66.
    • The employee is entitled to four months of severance pay, starting the day after his/her working agreement or after his/her notice period ended.
    • However, when the notice period from which the employee benefits is longer than three months or when the termination indemnity corresponds to a notice period of more than three months, the four-month period is reduced by the length of the notice period beyond the third month.
  • Fixed Term Contracts: -
    • There is no severance pay during the trial period.
    • After the trial period, the severance pay is equivalent to the amount of salary that was due until the end of the contract.
    • Nevertheless, this amount may not exceed twice the wage corresponding to the duration of the notice period that would have been calculated in the case of a permanent contract.

Belgium Salary and Wages

Accurately estimate your costs when employing in Belgium in 2023. Includes base salary, dependents, benefits, taxes, social contributions, and payroll costs. Monthly or yearly calculation period.

The calculator for Belgium is coming soon, development in progress.

Average Salary in Belgium

  • The average wage in Belgium for 2022 is €3,695 monthly (about $3,678.54) before tax.
  • The highest-paying sectors are in the Archeological and Historical fields, followed by engineers and technicians.
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Belgium Minimum Wage

  • The minimum salary in Belgium is set as a monthly rate as opposed to hourly rates in other countries.
  • As of 2022, the Belgium minimum wage is €1,658 (EUR) per month, or about $1,650.61.
  • This is given to workers aged 18 and above who work between 38 to 45 hours weekly.
  • Minimum wage rates given to workers may also vary depending on which province in Belgium they work in.

Belgium Salary Ranges

Minimum wage
€1,658
Median wage
€3,695

Employee Benefits

  • Employees who work five (5) days weekly are entitled to 20 annual paid leaves. Those who work six (6) days are entitled to 24 annual paid leaves.
  • All employees are covered under the mandatory social security system.
  • Expecting employees are entitled to 15 weeks of paid maternity leave. It can be extended to 17 weeks in the event of multiple births.
  • Fathers can be given 10 days of paid paternity leave following the delivery of their child.
  • Some employees may be offered supplementary health and workplace accident insurance, depending on the company.

13th / 14th Month Salary in Belgium

There is no legal requirement to pay the 13th and the 14th month salary in Belgian labor law.

Regardless, it is very common part of collective labor agreements (called CAO), between employee organizations and employer organizations in Belgium. These agreements establish in writing the obligations and rights of the various parties and are legally binding. 

The 13th month pay in Belgium is disbursed in December and taxed at a significantly higher rate than a regular salary. The 14th month is paid out in July as a double salary.

Income Tax in Belgium

Belgium taxes its residents on their worldwide income, irrespective of their nationality. Residents of Belgium are taxable on their worldwide income, while non-residents are only taxable on Belgian-source income.

  • Personal income tax (PIT) is calculated by determining the tax base and assessing the tax due on that base. Taxation in Belgium is charged on a sliding scale to successive portions of net taxable income.
  • For income year 2022, the federal tax rates range between nil and 50%.
  • Since assessment year 2015 (income year 2014), the tax calculation contains two major components, notably the 'federal PIT' and the 'regional PIT'. According to the 6th Reform, the Belgian regions are now entitled to retain surcharges on 'reduced federal personal income taxation', and also grant tax reductions/tax credits.
  • The tax liability may therefore differ (although slightly at this stage) depending on the region in which the residence of the taxpayer is located on the 1st of January of the respective tax year.
  • Tax rates are the same for resident and non-resident taxpayers, but some deductions or tax rebates are only granted to non-residents, provided that they earn at least 75% of their worldwide professional income in Belgium.
  • For residents of Belgium, communal taxes are levied at rates varying from 0% to 10% of the income tax due. The average rate being 7%. For non-residents, a flat surcharge of 7% is due. In some cases, communal taxes may also be levied on exempted foreign-source income.

The progressive tax rates for 2021 income are:

Income bracket

Tax rate Belgium

Bracket 1 From EUR 0.01 to EUR 13 540 25%
Bracket 2 From EUR 13 540 to EUR 23 900 40%
Bracket 3 From EUR 23 900 to EUR 41 360 45%
Bracket 4 More than EUR 41 360 50%

The progressive tax rates for 2022 (applicable in Financial year 2023) income are:

Over

Not Over

Rate %

Tax on bracket 

Cumulative tax

0 13,870 25  3,467.5 3,467.5
13,870 24,480 40 4,244 7,711
24,480 42,370 45 8,050.5 15,762
42,370 And above 50    
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Social Security Belgium

Belgium has a very extensive social security system. Foreigners are also entitled to certain allowances and social services.

The Belgian social security system is based on the payment of social contributions on your income from work. These social contributions serve to finance the social security system.

  • Each month the employer pays a considerable amount on top of your salary into the social security fund.
  • The employee also pays a proportion of his gross salary in social security contributions. This fund is then used to pay social security:
    • Allowances in the event of sickness
    • Unemployment benefits
    • Allowances in the event of incapacity for work through sickness or invalidity
    • Allowances in the event of accidents at work
    • Allowances in the event of industrial disease
    • Family allowances
    • Pensions
  • The employee's share of social security taxes is 13.07% of the total gross compensation, with no cap.
  • The employer's share currently varies around 27%.

Social Security Contributions Belgium

Employer Contribution

Employee Contribution

27% 13.07%
  EUR 9.3 to EUR 60.94*

* This contribution is collected by means of monthly deductions from net salary

  • The base employer contribution is 30.57% of 1.08 times the gross salary for blue-collar employees and 25% of gross salary for white-collar employees.
  • For blue-collar employees, an additional annual contribution of 10.27% is due on 1.08 times the gross salary.
  • However, the level of employer contributions varies depending on the size and industry of the company, as well as the employee’s salary.
  • Foreign employees with short-term assignments in Belgium who continue to be subject to the social security schemes of their home country, an exemption from social security may be granted, depending on the home country of the claimant.

Special Social Security Contribution

A special social security contribution is also due, the amount varying between EUR 9.30 and EUR 60.94 per month. This contribution is collected by means of monthly deductions from net salary, although the final amount due will be determined through the tax return process on the basis of actual net taxable family income.

The special social security contribution is not tax deductible. The maximum amount due by a family on a yearly basis amounts to EUR 731.28.

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Deductible Expenses in Belgium

Personal Deductions

Belgium's tax system allows for a number of personal deductions. For Belgian tax legislation purposes, the following items can be deducted from an employee's annual taxable income:

  • 80% of the support (alimony) payments to near relatives or a separated spouse are deductible (non-residents can deduct only payments made to residents of Belgium; however, there are some tax treaty exceptions).
  • Some non-business expenses give rise to a tax reduction.
  • For income years 2020 to 2023, the annual indexation of some tax reductions and tax exemptions are frozen. Consequently, the maximum amounts for a number of tax reductions will not be indexed during these four years and will remain at the same level as income year 2019.
  • As of income year 2024, the annual indexation will resume.
  • Regarding the maximum amount for pension savings, please note that a majority amendment was tabled before the Finance Committee with a view to maintaining the upper limits applicable for the tax years 2022 to 2024 at their level for the tax year 2021 (i.e. EUR 990 and EUR 1,270).

At the federal level, the most commonly granted reductions mainly concern:

  • Pension savings contributions, with a maximum of EUR 990 or EUR 1,270, depending on the extent of the tax reduction (i.e., resp. 30% or 25%).
  • Employee's contributions to group insurance: 30%.
  • Charitable contributions of minimum EUR 40 made to certain recognized EEA institutions give right to a 45% tax reduction.
  • Life insurance premiums: 30% with a maximum of EUR 2,350.
  • Remuneration costs of domestic personnel give right to a 30% tax reduction (up to certain limits and under certain conditions).
  • Child custody expenses, up to a maximum of EUR 14.4 per day for income year 2022 for children under 14 years of age give right to a 45% tax reduction.

At the regional level, the most commonly granted tax reductions concern:

  • The capital repayment of a mortgage loan.
  • Payment of services performed in the framework of local employment agencies or paid with service-checks.
  • Security investment against theft or fire.
  • Expenses incurred for the maintenance and renovation of certain real estate.
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Personal Exemptions

In addition to the above-mentioned deductions, some personal exemptions are granted. The following amounts are deductible in determining taxable income:

  • The personal basic exemption amounts to EUR 9,270.
  • For any other dependent person, an amount of EUR 1,690 is deductible.

Business Deductions

  • In determining the tax base, compulsory social security contributions (paid in Belgium or abroad) are fully deductible.
  • Employment-related expenses are also deductible, provided they are substantiated; alternatively, standard deductions may be claimed.
  • For employees, the standard expense deduction amounts to 30% of the gross earning, up to a ceiling of EUR 5,040.
  • For remunerated directors, the standard deduction is a flat 3% and cannot exceed the ceiling of EUR 2,660.
  • In addition to social security contributions and professional expenses, some non-business expenses can also be deducted from the taxable basis, and personal exemptions are granted.

Immigration Belgium

Learn about Belgium immigration requirements, work visa requirements, work permits, and more.

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Temporary work permits and process

Citizens from the European Union (EU), the European Economic Area (EEA – EU plus Iceland, Liechtenstein and Norway) and Switzerland can work freely in Belgium without the need for a Belgian work permit.

You must meet a number of conditions to come and work in Belgium. These conditions depend on the following three key factors:

  • Your nationality and country of residence;
  • The length of your stay in Belgium;
  • Your professional status (employee or self-employed) in Belgium.

In principle a Belgian work permit is required for any non-EU/EEA/Swiss national coming to work in Belgium. There are exceptions, however, depending on the nature of activities or residence status of the foreigner. For example, scientific researchers or those holding permanent residence permits entitling indefinite stay in Belgium are exempt from requiring a Belgian work permit.

  1. Type A Permit

    The Type-A permit allows you to work for any employer in Belgium for an unlimited period of time.

    In order to be granted a Type-A work permit you must have lived and worked in Belgium on a Type-B permit for a minimum of 4 years.

    The 4-year work requirement is shortened to 3 years for nationals of the following countries: Algeria, Bosnia and Herzegovina, Kosovo, FYR Macedonia, Montenegro, Morocco, Serbia, Tunisia, Turkey, and Croatia. The work requirement is reduced by another year if your spouse or dependent children have been living with you in Belgium for that time.

  2. Type B Permit

    The Type-B permit is valid for one employer and runs for one year, after which it can be renewed (by the same employer, usually for the same job or job classification). If you change employers, your new employer must apply for a new B permit; in which case you may need to return to your home country and re-apply for a residence visa before you can start your new job. Jobs filled using a Type-B work permit must pay a minimum of €39,802.

    Once you have lived and worked in Belgium for 4 years on the same permit, you can receive an unlimited A permit.

  3. Type C Permit

    The Type-C permit is valid for only one year, allowing the holder to work for multiple employers. Once expired, Type-C can be renewed.

    This is usually issued to temporary migrant agricultural or domestic workers, or to those whose length of stay in Belgium is unconfirmed, such as asylum seekers.

Residency visa / residence permit

If you need a working visa for Belgium, the main visas available are as follows:

  • Schengen visas (Business Visa)
  • Visas on the basis of a Work Permit (Type D)
  • EU Blue Card:
    • If you have a higher education qualification and a contract or binding offer of work in Europe, then you may be eligible for a Blue Card. Once you have one, a Blue Card entitles you to work anywhere in the EU including Belgium (apart from Denmark, the Republic of Ireland and the United Kingdom).
    • As a highly-skilled worker, you can obtain a work permit without the need for prior labor market analysis.
    • Minimum gross salary for the blue card Belgium is 53,971 euros (3,877.23 euros x 13,92) for 2019.

Belgium visa requirements overview

Learn about the visa policy in Belgium and all the ways to obtain a regular or a work visa in Belgium.

Schengen visas (Business Visa Belgium)

Vector 75

Visas on the basis of a Work Permit (visa application type D)

Vector 75

EU Blue Card

Vector 75
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Onboard employees in days, anywhere in the world

Value Added Tax Belgium

The following transactions are subject to VAT in Belgium if they are considered to take place in Belgium:

  • The supply of goods and services effected for consideration by a taxable person acting as such.
  • The acquisition of services for consideration from outside Belgium between taxable persons.
  • The importation of goods.
  • Intra-Community acquisition of goods for consideration by a taxable person acting as such or by a non-taxable legal person (including the transfer of assets).
  • The self-supply by a taxable person.

The standard VAT rate is 21%. However, the lower rates of 0%, 6% and 12% are applied to certain categories of goods and services.

Belgium VAT

Standard Rate

Group 1083

21%

 

Reduced Rate

Group 1083 12%

Examples: -

  • Restaurant and catering services, excluding beverages.
  • Phytopharmaceutical products.
  • (Inner) tubes.
  • Certain combustible material.
  • Margarine.

Reduced Rate

Group 1083 6%

Examples: -

  • Works on immovable property (limited in time and with strict conditions).
  • Basic necessities, such as food and pharmaceuticals.
  • Distribution of water through pipelines.
  • Some printed materials and electronic publications.
  • Transport services of persons.
  • Hotels and camping.

Value Added Tax

21%

Standard Rate

12%

Reduced Rate

6%

Reduced
Rate

Withholding Tax Belgium

  • Domestic corporations and PEs of foreign corporations paying dividends, interest, royalties, service fees, and/or certain rentals are required to withhold tax.
  • The default withholding tax rate on dividends paid to both residents and non-residents is 30%.
  • Interest paid to a resident or nonresident generally is subject to a 30% withholding tax (15% for interest on certain specific government bonds and regulated savings deposits exceeding certain thresholds), unless the rate is reduced under a tax treaty or an exemption applies under the EU interest and royalties’ directive or domestic law.
  • The withholding tax rate on royalties paid to both residents and nonresidents generally is 30%, reduced by a standard expense deduction of 15%. The rate is 15% for certain income from literary and associated rights and from legal and compulsory licenses not exceeding EUR 62,550 (for tax year 2022).
  • Technical service fee: - Withholding tax also must be withheld on certain other payments to nonresidents at a rate of 33%. The effective withholding tax rate is reduced to 16.5% as the results of a 50% lump sum cost deduction.

Withholding Tax

30%

Dividends

30%

Interest

30%, reduced by a standard expense deduction of 15%.

Royalties

33%

Technical Service Fee

Mandatory Benefits in Belgium

It’s important to understand the legal requirements of hiring employees in Belgium (whether it’s remote or in-office) so that your business remains compliant. As part of Global Expansion’s International PEO and Employer of Record (EOR) solution, we guarantee employees are registered with the appropriate government agency, and that they receive mandatory benefits such as minimum wage, workers’ compensation and paid time off (PTO).

Additionally, all tax deductions associated with the employee are processed at the source, meaning our in-country entity will be responsible for paying all taxes to the authorities on behalf of the new hire.

  • These are mandatory benefits as stipulated by the law
  • These include annual leave, public holidays, maternity leave, paternity leave, sick pay, 13th month bonus, notice period and severance pay.
  • Mandatory benefits also include social security benefits such as allowances in the event of sickness, unemployment benefits, allowances in the event of incapacity for work through sickness or invalidity, allowances in the event of accidents at work, allowances in the event of industrial disease, family allowances, pensions.
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Mandatory Benefits overview

  • Group 1113

    Annual Leave

  • Group 1113

    Public holidays

  • Group 1113

    Maternity leave

  • Group 1113

    Paternity leave

  • Group 1113

    Sick pay

  • Group 1113

    13th month

  • Group 1113

    Notice period

  • Group 1113

    Severance pay

  • Group 1113

    Social security benefits

Belgium Payroll

  • All individuals’ resident in Belgium and non-resident individuals taxed on Belgian-sourced income are required to file an annual tax return. The government, in principle, issues a tax return form to each taxpayer.
  • Taxpayers can opt to file their tax return electronically. Tax authorities will then, in principle, no longer issue a paper tax return form to these taxpayers.
  • For residents, their filings are due within 1 month after receipt of the tax form from the tax authorities and, in principle, at the latest on 30 June of the year following the income year.
  • For non-residents the filing deadline is, in principle, 30 September of the year following the income year.

Global Expansion’s EOR and international PEO solution can help you run payroll in Belgium with ease. In just a few clicks, your employees will be onboarded and enrolled into our payroll system. Additionally, we can invoice for clients locally, meaning we can enroll any new hire quickly and efficiently, whether they're an expatriate or a local national.

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Payroll Accrual in Belgium

Country Accruals Additional Information

25

White collar worker

8.33

Christmas Bonus

8.22

Vacations

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Payroll accruals details

The employee's share of social security taxes is 13.07% of the total gross compensation, with no cap. The employer's share currently varies around 27%.

The tax shift applicable since 2016 provides for a progressive decrease of the employer's social security contributions to 25%. Moreover, the tax shift provides for a complete exemption of employer social security charges for the first employee hired in the next five coming years and an extension of the reduction of the employer's contributions for the first six employees.

The latter measure will be extended until 31 December 2021 although the tax shift entered its final stage on 1 January 2019 and implements additional (though minimal) changes at the level of structural reductions.

Social security

Social security taxes are deductible in determining taxable income. For foreign employees with short-term assignments in Belgium who continue to be subject to the social security schemes of their home country, an exemption from social security may be granted, depending on the home country of the claimant.

As an example, foreign employees who are transferred to Belgium by a United States (US) employer for a period not exceeding five years and who remain covered by the US social security scheme, the Belgium/US social security agreement provides for full exemption from Belgian social security taxes.

According to several Supreme Court decisions, additional expenses reimbursed to foreign executives or specialists working temporarily in Belgium (see Employment income in the Income determination section) are, within certain limits, exempt from social security taxes.

Payroll Accruals Additional Information

Annual Leave

Vector 75

Maternity Leave

Vector 75

Paternity Leave

Vector 75

Sick Leave

Vector 75

Overtime

Vector 75

Severance

Vector 75

13th Month Pay

Vector 75

Social Security

Vector 75

Accrued Benefits in Belgium

Christmas Bonus %

Based on one month bonus 8.33%

8.33%
Christmas Bonus Over Vacations % 0%

Severance per Year%

The severance pay is equivalent to the wage and benefits multiplied by the duration of the notice period that should have been notified (9.61% of annual salary)

9.61%

Vacations %

Employees are entitled to 20 days of paid annual leave (5.49% of annual salary)

5.49%

Notice %

Employees are entitled to 35 days of notice period for one year of service or more (9.61%)

9.61%
Christmas Bonus Over Notifications % 0%

Vacations Plus %

Double holiday payment at 92% of the monthly salary in June

7.66%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per annum are equal to 33.04%

33.04%

Why use Global Expansion to hire in Belgium

Establishing a branch office or subsidiary in Belgium can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Belgian labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Belgian law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Belgium. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Belgian Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

If you would like to discuss how Global Expansion could help your business hire employees in Belgium, don't hesitate to contact us with the form available on our website.

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