Hiring Employees in Belgium
Guide to hiring employees in Belgium
Overview
Belgium is home to an open market with strong connections to the world’s major economies. It is also the location of many European Union institutions, making it an attractive market for business owners.
Belgium has a talented workforce that is experienced in different fields, meaning it is a good place to expand your company. The country has a strong economy and appeals to investors in many industry sectors, such as:
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Chemicals, petrochemicals, plastics and composites
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Environmental technologies
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Food processing and packaging
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Health technologies
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Information and communication
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Textiles, apparel and sporting goods
Major Belgian exports include chemicals (65.6%), machinery and equipment (9.7%), and transport equipment (4.5%).
Capital Brussels
Languages spoken Dutch, French and German
Population size 11.59 million
Payroll frequency Monthly
CurrencyEuro (EUR)
VAT 21%
You can find more economical and fiscal information on Belgium at the dedicated section.
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Payroll and taxes in Belgium
Organisations in Belgium are not required to set up an in-country bank account to make global payments to tax authorities and employees.
Belgium’s taxation is one of the highest in Europe, with rates amounting to an effective rate of over 50% for the highest earners. Tax and company tax are collected at the state level in Belgium. However, there is a special tax status for some expats that allows foreign residents to be treated as non-residents for tax purposes. This enables them to receive generous tax allowances.
Belgium has double taxation treaties to help relieve tax residents from having to pay additional income tax to another country. The government also provides a variety of tax deductions to help reduce the tax burden.
The tax year runs from 1st January to 31st December.
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Social security
The social security system in Belgium is based on employees’ payment of social contributions on their work income. These contributions serve to finance the social security system to provide coverage for programs such as pensions, unemployment benefits, sick pay and more.
Social security tax is deductible from total taxable income. An example is a foreign employee assigned temporarily in Belgium but still benefiting from social security schemes in their home country. In this situation, they may be exempt from Belgian social security contributions based on an agreement between their native country and Belgian social security.
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Employer contributions
Employer contributions to social security taxes for white-collar workers typically amount to 25% of the gross salary while blue-collar workers have a contribution rate of 50% of the gross salary, accounting for annual holiday pay.
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Employee contributions
Employees pay 13.07% of the total gross compensation towards social security, with no cap.
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Working hours in Belgium
In Belgium, full-time employees are expected to work for 38 hours per week. However, as of February 2022, the Labour Deal states that workers can spread their weekly working hours over four days, creating a 9.5-hour work day.
If an employee works more hours than agreed in the collective agreement, overtime pay is mandatory. Employees are entitled to work a maximum of 10 overtime hours per week and no more than three hours.
For additional hours, employees must be paid:
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150% of normal salary if the overtime work takes place on a working day
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200% of normal salary if the overtime work takes place on Sundays or holidays
The standard working week is from Monday to Friday.
For shift workers, the number of fixed or flexible work hours can be increased for work performed in consecutive shifts with a minimum of two consecutive shifts and each shift consisting of at least two persons. In this case, the work limit can be increased to 11 hours per day and 50 hours per week under certain conditions.
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Rest breaks in Belgium
Rest breaks during the work day are typically determined at a sectoral level in Belgium however the general rule of thumb is to provide employees with a minimum of 15 minutes of break time for every six consecutive hours worked.
Employees are also entitled to at least 11 consecutive hours in between each 24-hour period that they start and end their work day. For employees performing night-time or shift work, they are entitled to 11 hours of rest between completing a shift and starting the following one.
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Minimum wage in Belgium
Most wages in Belgium's private sector are determined by collective bargaining agreements (CBA), also known as Collective labor agreements. These mechanisms are used to determine and uphold employment standards in the country and can occur across various levels.
Minimum wage in Belgium is usually set based on CBA between the employer and the employee and varies depending on the sector, seniority and job role. As a general rule, the minimum wage is as follows:
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1758.48 EUR for employees over 18 years of age
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1805.15 EUR for employees over 18 years of age with at least 6 months of seniority
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1825.88 EUR for employees over 18 years of age with at least 12 months of seniority
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Employee benefits in Belgium
Mandatory benefits
Bonuses
Employers must pay two additional salaries per year, as well as a voucher according to Belgian employment law. Details of these bonuses are as follows:
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13th month bonus - a holiday allowance payment delivered in May. This payment is calculated based on the previous calendar year.
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14th month bonus - an end-of-year payment delivered in December. This is representative of the monthly salary.
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Eco voucher - a one-time voucher paid in June and to the value of 250 EUR
Retirement benefits
All monthly pensions are linked to the cost-of-living index, with a full pension representing 75% of the base salary for a married employee with a dependent spouse and 60% for single employees.
In Belgium, the 'single' pension is paid to each spouse in the majority of cases since both spouses generally have a professional income. Base earnings are the average lifetime base earnings adjusted in line with the cost of living index. Benefits are adjusted similarly. However, salaries used for pension calculations of monthly paid employees and hourly paid employees are limited to a ceiling.
That said, a minimum pension is guaranteed for employees with a full career (or a partial career representing at least 2/3 of a full career).
Disability benefits
Employees are entitled to disability benefits equal to 30 days’ income. Hourly paid employees are eligible for full income for one week, with a lower rate paid for the subsequent three weeks. The latter payment is shared between the employer and the state.
If the employee’s loss of earnings due to disability is at least two-thirds, they will receive a statutory benefit for the next 11 months, equal to 60% of their yearly gross salary (up to a maximum of 45,858.79 EUR if the employee is the breadwinner, single or living with a person receiving income).
Medical benefits
Belgium has a strong healthcare system and employers can provide medical and hospital care reimbursements. These are determined in agreement with the government's health authorities, hospitals, clinics and physicians.
Supplementary benefits
Workplace perks
When considering supplementary benefits for your employees, think about what would be most helpful to their needs and how you can help them create the best possible sense of work-life balance. This will help to create a more productive and engaged workforce, thus having a positive impact on your business output.
Additional benefits could include:
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Flexible and remote working options
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Transportation allowance
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Profit sharing
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Additional holiday allowance
Types of leave available in Belgium
Annual leave
Employees in Belgium must work continuously for a full year before receiving any holiday entitlement. Full-time employees are entitled to 20 paid holidays per year if they are working a 38-hour week. Those who work a 40-hour work week are entitled to 21 days of paid leave per year.
Part-time employees receive paid annual leave entitlement on a prorated basis.
Sick leave
If an employee needs time off for sickness, they are entitled to a guaranteed salary during the first 30 days of incapacity. After the first month, the social security system takes over the payment, limited to 60% of the employee’s salary. In order to receive this, employees must:
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Notify the employer immediately if they are unable to work
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Provide a medical certificate stating their inability to work and the estimated period needed to recover
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Agree to an additional check-up by a doctor, chosen by the employer
Maternity and paternity leave
In Belgium, maternity leave is split into two periods:
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The prenatal rest period - maximum period of six weeks of maternity leave (eight weeks in the event of a multiple pregnancy) before the presumed date of birth. Only one week is considered as a mandatory period of time off while the remaining five are optional.
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The postnatal rest period: minimum of nine weeks (11 weeks in the event of a multiple birth) after giving birth
Pregnant employees do not receive a salary during maternity leave, but they should receive statutory maternity allowance from the health insurance fund.
After the birth of a child, fathers or co-parents are entitled to 20 paid days of paternity leave. Belgium employers pay the first three days at 100% of the employee’s wage, and the following days are paid by the health insurance fund at 82% (limited to the wage limit of the illness benefits).
Employees can choose to plan the days within a four-month period, starting from the day of birth. Multiple births have no impact on the number of paternity leave days.
Public holidays in Belgium
Belgium observes 10 public holidays, many of which are religious holidays as well as regional holidays:
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New Year’s Day
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Easter Monday
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Labour Day
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Ascension Day
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Whit Monday
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National Day
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Assumption Day
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All Saint’s Day
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Armistice Day
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Christmas Day
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Termination of employment in Belgium
Notice period
The minimum notice period for employees in Belgium is two weeks for less than three months of employment. This is then increased based on the length of continuous employment. The termination of an employment relationship can be initiated by either the employer or employee or through mutual agreement.
Belgian employers can terminate an employment contract by either providing proper legal notice or by paying an indemnity in lieu of notice. In the latter case, the employment agreement will be terminated immediately. The employee can appeal to the court if they feel the dismissal is unjustified, and additional compensation may be due if the court deems the dismissal to be unfair.
Individual dismissals
In the event of an individual dismissal, the employer and the worker must decide between proceeding with serving a notice period or ending the contract immediately with severance pay. For the latter case, the severance pay will typically equal the wage and benefits of the employee, multiplied by the intended duration of the notice period.
Collective dismissals
Belgian labor laws also dictate that full-time workers who are affected by collective dismissal be eligible for severance pay in addition to certain unemployment benefits.
Protection against dismissal
Employees who have been unfairly dismissed by a company are entitled to compensation worth three to 17 weeks of their annual salary. An unfair dismissal is one that is carried out without relation to an employee's performance or to the business needs of the organisation.
Probationary periods
Probation periods are not permitted in Belgium, the only exception being the first three days of a temporary agency work agreement.
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Severance pay
Severance payment is generally only applicable if the employer has not provided proper notice of termination.
Are background checks compulsory in Belgium?
In Belgium, criminal background checks are only required in specific industries. A company can view a candidate’s information on social media as long as the record is public. Employers can conduct medical tests in particular sectors, but this must not involve genetic testing.
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Do you need to hire employees in Belgium?
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Talk to us
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Contact
Mrs. Emanuela Ferina
Head of Global Payroll
emanuela.ferina@studio-bcs.com
Phone 0039 0 363 360254
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