Payroll & Employment Guide Belgium

Employment contracts in Belgium must be in written form and comply with the national labour laws. Whether they are fixed-term, indefinite, or part-time contracts, they must clearly define the terms of employment, including job responsibilities, working hours, remuneration, and the rights and obligations of both employer and employee.

Notice periods: Notice periods vary depending on the employee's seniority, ranging from a week to 3 months.

Termination of employment: Termination can occur through normal processes, immediate dismissal for cause, or mutual agreement, depending on the scenario.

Employers in Belgium are required to provide mandatory employment benefits as outlined by national labour laws. To remain competitive, many also offer additional perks that enhance the overall employee experience. Understanding both mandatory and common benefits is key to attracting and retaining top talent.

• Mandatory benefits: Social security, healthcare, pension contributions, holiday pay.
• Common perks: Meal vouchers, company cars, eco vouchers, group insurance.
• Leave policies: Paid annual leave, sick leave, maternity and paternity leave, career breaks.

Belgium has a progressive tax system that applies to both individuals and businesses. Employers are responsible for withholding income taxes and social security contributions, while additional tax rules apply to royalty income and VAT. Tax returns are filed annually, with deadlines varying based on the filing method.

Personal income tax rate: 25% or 50%, depending on the amount of income.

VAT: 21%

Tax allowances: Childcare expenses, retirement savings, donations, dependent children, and mortgage loan repayments

Additional tax reliefs: Service vouchers, household staff expenses, life insurance premiums, energy saving expenditures

Employers in Belgium must pay salaries in accordance with individual or collective labour agreements, ensuring compliance with sector-specific minimum wages set by joint labour committees. Salaries are typically paid on a monthly basis and must include all applicable benefits, bonuses, and statutory deductions.

Salary payment deadline: By the 7th of the following month.

Taxes and contributions payment deadline: By the 20th of the following month.

Payroll declarations deadline: By the 20th of the following month

Payroll currency: EUR

Belgium’s labour laws are governed by a combination of national legislation and sector-specific collective labour agreements. These regulations cover key aspects of employment such as contract types, minimum wage, working hours, probation periods, payroll, and employer obligations. To remain compliant, employers must understand and follow both national laws and the relevant provisions set by joint labour committees.

Total employment cost:

• Employer’s social security contributions: 27%
• Employer’s health insurance costs: 1.7%
• Employees’ social security contributions: 13.07%
• Employees’ health insurance costs: 1.7%

Minimum wage: EUR 2,111.89 per month

Probation period: N/A

In Belgium, foreign workers typically require a work permit or visa to be employed. As of January 2019, the single permit system is in place, combining work and residence permits into one document. The Regions are responsible for regulating foreign workers, while the Federal State oversees certain residence situations, such as EU citizens and long-term residents. Employers must ensure compliance with these regulations when hiring non-Belgian nationals.

Types of permits: EU, US, and Kosovo nationals can get a five-year Unique permit; other foreign nationals may receive permits of varying lengths.

Process length: Up to 3 months

Process cost: 1800€

Using EOR services in Belgium enables you to employ individuals legally in the country without establishing a local legal entity. The EOR takes over all the legal responsibilities as an official employer, including:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

Utilising PEO services in Belgium offers HR and administrative support, allowing you to remain the legal employer. PEO services are ideal for employers who already have legal entities in Belgium but need support to manage their workforce operations, including:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams offers a payroll calculator tailored to Belgium’s labour regulations. With our calculator, you can quickly calculate gross and net salaries, understand employer and employee contributions, and estimate all required deductions based on local laws.