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.