Salary Calculator
Belgium
The Native Teams payroll calculator streamlines the process of calculating the salary of your employees and understanding associated costs across various countries. It can help you estimate the cost of hiring employees in different regions and offer helpful insights into tax obligations, health contributions, and pension expenses specific to the chosen country.
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How does the salary calculator for Belgium work?
The salary calculator for Belgium functions by estimating both gross and net earnings, considering various factors. It begins with the gross salary, which includes base pay, bonuses, and other agreed compensation. Then, Belgium’s income tax system, with its progressive tax brackets, is applied to determine the deductions, including those for expenses like healthcare and education.
Social security contributions from both the employee and employer are also factored in, covering essential areas such as pensions and healthcare. After all taxes and contributions are applied, the calculator provides the net salary or the actual amount the employee takes home.
What is the salary cost in Belgium?
Employers in Belgium are required to contribute around 25% to 30% of the employee’s gross salary to social security, depending on the sector and industry. These contributions cover several benefits, including retirement pension, healthcare, unemployment insurance, disability insurance, and family allowances. Moreover, employees contribute 13.07% of their gross salary to the social security system.
How much tax do you pay in Belgium?
Belgium operates a progressive income tax system, meaning that the tax rate increases as an individual’s income rises. The tax is deducted from an employee's salary through a pay-as-you-earn (PAYE) system. The 2024 tax brackets are as follows:
-25% on income up to €15,820
-40% on income between €15,820 and €27,920
-45% on income between €27,920 and €48,320
-50% on income above €48,320
Besides national taxes, employees also pay municipal taxes, which range from 0% to 9% of their federal income tax, depending on where they live.
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in Belgium?
In Belgium, employees working five days a week are entitled to 20 days of paid leave, while those working six days a week receive 24 days. The country also provides a generous maternity leave of up to 15 weeks, with the first 30 days paid at 82% of the employee's salary and the remainder at 75%. Fathers are entitled to 10 days of paternity leave, with 7 days paid at 82% of their salary.
Belgian employers often provide supplementary benefits such as meal vouchers, eco-vouchers, supplementary health insurance, and company cars or mobility budgets. Belgium also has a group insurance system for life and disability coverage, and many companies offer profit-sharing or collective bonuses.
Are there any other benefits or additional expenses?
Meal vouchers are a popular benefit in Belgium. These vouchers, which are partially tax-deductible, allow employees to buy meals at participating restaurants and supermarkets. Some employers in Belgium offer subsidised gym memberships or wellness benefits, promoting health and well-being among employees.
What is the difference between Gross and Nett in the Belgium Salary Calculator?
In Belgium, the gross salary refers to the total earnings of an employee before any taxes or social security contributions are deducted. This includes the base salary, bonuses, and any additional compensation that the employee may receive. The gross salary represents the cost to the employer before contributions like social security or taxes are taken out.
On the other hand, the net salary is the amount the employee takes home after all deductions. These deductions include income tax, which in Belgium is based on a progressive tax system, and social security contributions, which cover pensions, unemployment, health insurance, and other social benefits.
How can Native Teams help with employment, salary and taxes in Belgium?
At Native Teams, we offer comprehensive solutions to simplify employment, payroll, and tax management in Belgium. Our platform provides various tools and services aimed at streamlining payroll operations while ensuring full compliance with Belgium regulations. We support employers with tasks such as salary calculations, tax management, and benefits administration. With our services, you can ensure timely and accurate salary payments, minimise administrative burdens, and rest assured that all legal requirements are met efficiently.