Payroll and Benefits Guide Belgium
Last updated: May 02, 2023
Contributions
Employer
Employer Payroll Contributions
|
25.00% |
Social Security (includes coverage for Sickness, Unemployment, Accident Insurance & Pension) |
|
25.00% |
Total Employment Cost |
Employee
Employee Payroll Contributions
|
13.07% |
(in % on gross wage at 100.00%) Social Security for white-collar workers |
|
13.07% |
(in % on gross wage at 108.00%) Social Security for blue-collar workers |
|
13.07% |
Total Employee Cost |
Employee
Employee Income Tax
|
25% |
0.00 EUR – 15,200 EUR annually |
|
40% |
15,200.01 EUR – 26,830 EUR annually |
|
45% |
26,830.01 EUR – 46,440 EUR annually |
|
50% |
46,440.01 EUR and above annually |
|
10,160 EUR |
Tax free allowance per individual, further reductions on tax withholdings are available, these include Childcare, Family reductions, reductions for other dependent relatives etc. |
Employer taxes
Employee taxes
Minimum Wage
General
In Belgium, there is a GMMMI, a guaranteed average minimum monthly income, and an absolute minimal income level set at national level (in the absence of a sectoral minimum wage). The GMMMI is based on monthly wage including other salary components received over the year, e.g. year-end bonus, variable pay etc.
The new GMMMI figures for 18-years-old and over are 1.954.99 EUR
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Belgium, the payroll frequency is monthly for work between the first and last day of the month and is typically paid on the last day of the month.
13th Salary
A 13th salary may apply depending on the Joint Labor Committee. For those employers who pay a 13th-month bonus, it is typically paid at the end of the year. In addition, some employers also add half of a 14th month’s pay.
In the first and last year of employment, the 13th-month bonus is paid pro-rata, assuming the employee doesn’t work a full calendar year.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Belgian social security contributions |
Belgian social security authorities |
The Belgian social security contributions are due on a quarterly basis. The due date is the end of the month following the concerned quarter. |
Wire |
|
Advance payments on Belgian social security contributions |
Belgian social security authorities |
The advance payments towards the Belgian social security contributions are due on a monthly basis. The due date is the 5th day following the concerned month. These advances are deducted from the quarterly balance (see above). |
Wire |
|
Belgian wage withholding taxes |
Belgian tax authorities (“Team inning BV” in Dutch) |
The Belgian wage withholding taxes are due on a monthly basis. The due date is the 15th day following the concerned month. |
Wire |
|
Belgian labor accident insurance premium |
The insurance company |
The insurance premiums are due on an annual basis. There is an advance payment (in the beginning of the year) and a settlement of the premium (at the end of the year). |
Wire |
|
Belgian external service prevention and protection at work premium |
The insurance company |
The insurance premiums are due on an annual basis. There is an advance payment (in the beginning of the year) and a settlement of the premium (at the end of the year). |
Wire |
|
Group insurance |
The insurance company or the insurance broker |
The insurance premiums are due on a monthly basis. The effective Due dates differ depending on contract between the insurance company and the employer |
Wire |
|
Health insurance (private company/optional) |
The insurance company or the insurance broker |
The insurance premiums due dates depend on the contract between the insurance company and the employer. It can be on a monthly, quarterly or yearly basis. |
Wire |
Working Hours
General
The standard working week in Belgium can be no longer than 38 hours. After 38 hours, workers must be paid overtime (this generally does not apply if the employee is a senior executive or manager). The maximum working time per week may be lower in some industry sectors based on a collective bargaining agreement. There are several statutory exceptions to this rule.
In the case of shift work, it is possible to work up to 11 hours per day (50 hours per week) and in the case of continuous work, even up to 12 hours. Under certain conditions, employers may introduce flexible working time schedules with a weekly working time exceeding 38 hours, provided that the quarterly or yearly average remains at 38 hours per week.
The daily minimum working time is three hours, but statutory exceptions exist. Working hours at night, on Sundays, or during public holidays is only allowed under strict legal conditions.
Overtime
Employees on full-time working contracts (a maximum of nine hours per day and 38 hours per week) are subject to the limits on working hours, which may only be exceeded in certain cases such as extraordinary multiplication of work or urgent tasks required by unforeseen circumstances.
Overtime work must be reimbursed in two ways:
(1) Paying higher rate of overtime at an additional 50% salary for overtime on weekdays and Saturdays and an additional 100% salary for Sundays and public holidays and (2) Providing catch-up rest for each hour performed in excess of weekly working hours, for example, someone who performs four overtime hours is entitled to four hours of catch-up rest to be used within the year.
Workers in management and trust positions might be exempt from overtime working rules.
Working Week
Monday-Friday
Leave
Paid Time Off
In Belgium, an employee’s annual leave entitlement in a given year is determined by the number of days worked. Employees are entitled to 20 to 24 days of annual leave, depending on their working regime (i.e., For a five-day week, the entitlement would be 20 days paid annual leave and for a six-day week, 24 days).
Public Holidays
Employees are entitled to remuneration for ten official public holidays. If a public holiday falls on a Sunday or on a day the employee does not usually work, the employer must grant a replacement rest day.
Sick Days
Sick Days
In case of illness or a personal accident, the employee continues to receive their regular salary for thirty days of which the employer pays. After 30 days, the Health Insurance Fund will pay for further leave at 60% salary. All sick leave must be certified by a medical professional and a sickness certificate issued.
Maternity Leave
A pregnant employee is entitled to 15 weeks of maternity leave with the potential to increase to 19 weeks in the case of complicated or multiple births.
Maternity leave consists of two periods: Prenatal leave and Postnatal Leave.
A mother must take a minimum of one week’s leave before the expected due date but can take up to a maximum of six weeks of leave before the due date; this is the Prenatal Leave. A mother must also take a further nine weeks of leave following the birth of a child, the Postnatal Leave.
Employees are forbidden to perform work during the seven days preceding the presumed delivery date and within the nine weeks that begin on the day of delivery. The employee may take the remaining weeks either before or after childbirth. The employee is required to notify her employer at the latest seven weeks before the expected date of delivery (or nine weeks when multiple births are expected), a medical certificate attesting to this date.
Women receive maternity benefits while on maternity leave. This benefit, paid by the social security system Health Insurance Fund, equals 82.00% of the employee’s salary for the first 30 days and then reduces to 75.00% of their regular pay (which will be capped). During this period, the employer is not obliged to make any payments to the employee.
PAID MATERNITY LEAVE (DAYS)
Paternity Leave
The father is entitled to 20 days of paid paternity leave. The 20 days of paid leave can be taken separately, in a row, or split up into 40 half-days.
The leave must be taken within the first four months after the birth. During the first 3 days of absence, the employee is paid a full salary by the employer. During the following 17 days, the employee receives benefits from their public health insurance at 82% of the (capped) salary.
Parental Leave
Parental leave can be requested at any time from the end of the post-natal maternity leave and can be taken once an agreement has been reached between the employee and employer, as follows:
- A single four-month period
- Multiple periods which are broken into at least one month each
- Temporarily reducing the working hours to 80% for a maximum of 20 months. This period can also be divided up into multiples of two-month periods.
- Temporarily reducing the working hours to 50% for a maximum of eight months. This period can also be divided up into multiples of two-month periods.
- Taking off half a day per week or one full day every two weeks. This can be done for a maximum of 40 months or divided into several periods of 10 months each. However, the employer has the right to refuse this scheme.
Adoption & Foster Care Leave
An employee who takes in a child in his family as part of long-term foster care or adoption is entitled to an individual credit for parental leave of up to six weeks. This credit for six weeks is not transferable to the other adoptive parent.
Adoption and foster care leave is paid in the same way. The first three days are paid by the employer at 100% of the wage, the next day is paid by the health insurance fund. Each individual parent is entitled to six weeks of basic pay (doubles in some cases) followed by an additional period which can be split between the two parents, (6+3= 9 weeks).
Other Leave
Depending on the various Joint Labor Committees, employees may be allowed additional leave types once approved between the employer and employee.
During family care or when assisting a seriously ill household or family member:
- All employees (employed full-time or part-time) can entirely suspend their services for 12 months maximum per patient. These interruptions must be taken each time for periods of a minimum of one month and a maximum of three months.
- All employees are entitled to reduce their benefits by 1/5 or 1/2 during 24 months maximum per patient. These benefit reduction periods must also be taken each time in periods of a minimum of one month and a maximum of three months.
- All employees employed part-time whose average weekly working hours are at least equal to ¾ of the average weekly working hours of a full-time worker can reduce his or her benefits by up to half of full-time employment for a maximum period of 24 months per patient. These benefit reduction periods must also be taken each time in periods of a minimum of one month and a maximum of three months.
- Employees are entitled to paid time off to perform their jury leave duties.
- Employees are entitled to paid leave due to a death of a family member.
- Employees are entitled to leave for the marriage of the employee or family member.
Termination
Termination Process
Termination Process
The termination process varies depending on the employment agreement; the strictest form of dismissal is dismissal with notice. Employees who have been employed for at least six months have the right to know the reason for the termination.
Some employees enjoy protection against dismissal, meaning that the employer may not dismiss them on some grounds; for example, pregnant women can not be dismissed because of their pregnancy. An employee cannot be dismissed except for specific reasons provided by law (e.g. employee representatives in the Works Council and Committee for Prevention and Protection at Work (CPPW)).
Some sectors have additional procedures (laid down in collective bargaining agreements) that could provide specific information and consultation rules, etc., which, even with multiple dismissals, do not fall under the European and national collective dismissal rules.
When the employment contract ends, all wages that are still due must be paid without delay and are to be paid on the first payday following the date on which the employment contract ends at the very latest. (art. 11 of the Wage Protection Act).
When a certain percentage of the workforce in a business is made redundant, collective agreements generally entitle them to additional compensations over and above the average unemployment benefits. Employees dismissed for serious cause or resigned employees will not (immediately) be entitled to unemployment benefits.
Notice Period
Notice periods are dependent on the length of service/employment:
0-3 months service = 1 week notice
<4 months = 3 weeks
<5 months = 4 weeks
<6 months = 5 weeks
6-9 months = 6 weeks
9-12 months = 7 weeks
12-15 months = 8 weeks
18-21 months = 10 weeks
21-24 months = 11 weeks
2< years = notice continues to build each year, capped at 65 weeks notice.
It is also possible to pay in lieu of notice. As of January 2023, new rules were applied to the notice period. During the notice period, the worker will be able to take time off to attend training or coaching, and this is to be enhanced further in 2023 to encourage a “transition trajectory” with the goal of a quicker return to the labor market.
Severance Pay
Severance is only applicable when termination is made without notice by the employer.
Probation Period
Probation or trial periods have been suppressed by the Unified Employment Status Act since January 2014 (except with students, temporary workers, and temporary agency workers).
Common Benefits
General
- Gym/Wellness allowance – approximately 50-100 EUR per month
- Hospitalization Insurance allowance – approximately 80 EUR per month
- Additional leave – a total of 25 days is common to give
VISA
VISA
EU nationals planning to stay in Belgium for less than three months should register with the relevant local authority upon arrival. If the period of stay is for more than three months, it will be necessary to obtain a registration certificate from your local authority.
After living in Belgium for three years, EU citizens will need to transfer their health and social security coverage to their host country to apply for permanent residency.
Citizens of non-EU countries require a visa and/or work permit. Short-term visas are for individuals staying less than 90 days in Belgium, while long-term visas are for those residing in Belgium for more than 90 days. The latter also requires a work permit, which the prospective employer must usually apply for ideally many months in advance. The type of employee determines conditions and procedures for the application process.
Applications are to be made in correlation to the region in which an employer will be working. An application must be submitted to the Economic Migration Department at least two months before the expiry date to extend a work permit.
Remote Working
Home Working
Under the law, home-based employees must be granted a monthly employer-paid, tax-free work from home allowance. This requirement applies to full time and part time employees working from home on a regular basis (at least one day per week/five days per month). The maximum tax free allowance is €148.73 per month.
Office expenses can be covered within this tax free allowance, including the use of office space, maintenance, insurance, property tax, snacks, office supplies, printer and computer equipment, utilities and additional reimbursements or provision of equipment.
The Belgian government passed legislation requiring employers with 20 or more employees to stipulate in writing the right for employees to disconnect after working hours, in either company Collective Bargaining Agreements (CBA) or in company level policies and regulations. Guidelines for using digital tools in a way to protect employees’ resting times, their holidays, and their private/family lives.
Training and awareness plans for employees and managers on the prudent use of digital tools and the understanding of the risks associated with over connection.”
VAT
General
The standard rate of VAT in Belgium is 21%.
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Questions & Answers
See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws
Payroll and Benefits Guide
in Belgium
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Day | Date | Holiday | Notes |
|---|---|---|---|
| Sunday | Jan-1 | New Year’s Day | |
| Monday | Apr-10 | Easter Monday | |
| Monday | May-1 | Labour Day | |
| Thursday | May-18 | Ascension Day | |
| Monday | May-29 | Whit Monday | |
| Friday | Jul-21 | National Day | |
| Tuesday | Aug-15 | Assumption Day | |
| Wednesday | Nov-1 | All Hallows | |
| Saturday | Nov-11 | Armistice of 1918 | |
| Monday | Dec-25 | Christmas Day |
What is the rate of pay for the double holiday pay?
Depending on the collective bargaining agreement, some employees might be entitled to double holiday pay. This is usually paid out when the employee takes their main holiday or in many cases, employers choose to pay this amount out in May. The rate of pay is 92% of the gross monthly salary and any variables, including commissions, bonuses, or any other extra pay. In addition, if the employee is entitled to a mobile phone allowance, this is also included when calculating the double holiday pay. The gross monthly salary is determined by the average of the last 12 salaries before the employee takes the leave.
For the double holiday pay, if the employee has commissions, how are the commissions calculated for that pay? Is is the year’s total commission averaged out per month or is calculated on the total year’s commissions?
Hello Scott,
It’s important to note that in Belgium Holiday Allowance and Pay is based on the 12 months before the month of vacation i.e. it is accrued in advance.
Holiday pay in Belgium is calculated according to Belgian labor laws based on general notions of salary. These are all benefits of the work performed in executing the employment agreement. The remuneration that is not subject to social security contributions is excluded from this notion.
Commissions and bonuses are included in the calculation base.
The single holiday pay corresponds to the average variable remuneration earned during the 12 months before the month during which the main vacation is taken, divided by 20.83 (in case of a 5 days working week) and multiplied by 20 (if entitled to the complete 4 weeks of vacation).
The double holiday pay corresponds to 92% of 1/12th of the gross variable remuneration earned during the 12 months before the month during which the main vacation is taken.
Hi Emily, At what rates are the 13th month salary and double vacation pay taxed? Are they both subject to the same social security and net income tax rates as the regular gross salary?
Hi Tils, thank you for your question! This is correct, the 13th month salary and double vacation pay are taxed at the same rate as the regular gross salary is for both the employer and employee contributions. Hope this helps!
Are there mandatory annual salary increases?
Hi, good question! Yes, there is! It varies every year, and is different between different regions and job types. The percentage of the increase is announced at the end of the calendar year. For example, for 2021, the increases were between 1.23%-1.94%.
Do we know when the 2022/2023 mandatory annual salary increases will need to be applied please?
No, we usually only find out the increased amount on the month it is given.
How do I calculate the number of PTO days employees get if they joined less than a year ago?
The number of paid holiday days an employee earns is based on both the number of days worked per week and the number months worked over the past year, either for you or for a previous employer. An employee who works five days a week for 12 months earns 20 days of paid holiday. If the employee works less time over the past year, it can be calculated proportionately by that standard.
What is the maximum number of hours an employee can work in a week?
In general, rules on working hours are very strict, and a 38-hour workweek is the maximum. However, depending on various collective bargaining agreements and joint labor committees, the workweek may be shorter than 38 hours. In some cases, there are work schemes that allow for successive shifts that permit an 11-hour workday or 50 total in a week. Another exception is for technical work that otherwise would interrupt the operations of a company. In this case, a 12-hour workday is permitted or 50 hours per week, or alternatively, an 8-hour workday or 56 hours per 7 days.
For new employees joining, does Papaya declare the new person to social security services?
Hi, thank you for your question. Yes, Papaya works with our Employer of Record to ensure that your worker is being hired with full compliance with local labor laws and requirements. Our partners are fully vetted to ensure this. Please feel free to schedule a call with us to understand how we can assist you https://papayaglobal.com/schedule-a-demo/.
Hi , If you can help to understand the payouts norms Belgium laws. We want to appoint XYZ as Manager Finance. Our offer for him is 55000 Euro per annum. Your advise is require to help and to understand how we can bifurcate into CTC components as per Belgium payout norms.
Hi Jamuna, This is very specific and the setup will vary depending on the setup of the client, the joint committee, etc. For example, under our EOR ICP, the salary will be 12 regular salaries + an additional 100% salary as 13 salary + 14th salary at 92% salary. It’s important to seek specific guidance to understand what will impact your workers.
Hello,
Hope you are well?
I am located in the UK and I have just agreed on a monthly net salary with a Belgian company. I would like to know about the holiday pay. Is this something supposed to be paid to me as an extra? Or should this be included in the net salary. Could you kindly let me know?
Hi Mel, It depends on what was agreed on during the contract signing.
Hi Erez, thanks for the answer. There was no mention about this, so I believe they included this in the net salary without letting me know.. 🙂
HI I would kindly ask what rules apply about travel costs, to my understanding:
If an employee commutes by train (over any distance), the employer makes a contribution towards the employee’s season ticket. The contribution is set at a flat rate, based on the cost of a season ticket at 2019 prices (the flat rate is renegotiated every two years).
• If an employee commutes by another form of public transport, over a distance of at least five kilometres each way (one kilometre each way, from 1 July 2020), the employer makes a contribution towards the employee’s season ticket. This flat-rate contribution is the same as that for rail transport but is capped at either 71.8% or 75% (depending on how the price is set) of the actual cost of the public transport.
based on this I am not sure if we need to reimburse the train ticket and also to what extent. so does an employee need to bring a train ticket monthly or once is enough?
According to section 8 of the COLLECTIVE WORK AGREEMENT N° 19/9, “The employer’s contribution to the transport costs borne by the workers is paid once a month for workers with a monthly subscription, or during the period of payment which is customary in the company in with regard to tickets that are valid for three months, one year or for part-time tickets”. http://www.cnt-nar.be/CCT-COORD/cct-019-09.pdf https://emploi.belgique.be/fr/themes/remuneration/intervention-de-lemployeur-dans-les-frais-de-deplacement-domicile-lieu-de
Hello,
Regarding overtime for part-timers during normal office hours would it be calculated as 125% of the basic salary ?
Additionally, for paternity leave are employees entitled to full pay for the fifteen days or how would it be calculated ?
Kind regards,
Overtime pay should be at least 150% of the employee’s regular rate and 200% of the standard rate for overtime on Sundays or public holidays. For the first three days of paternity leave, fathers and co-parents receive their full salary from their employers. The employees’ mutual insurance fund will pay 82% of the capped gross salary for the remaining period.
Hello, I started a job in BE in January, coming from another EU country. I have 20yrs of work experience, but my current employer does not want to grant me any holiday days except for the 1/ month. At the same time seems I am not eligible for the 0.92 holiday payment either since I did not previously work in Belgium. Is this correct?
It depends on the Collective Bargaining Agreement in Belgium, but as a general rule, holiday entitlements are based on what was accrued the previous year; therefore, if someone didn’t work in Belgium before starting a job, they would likely not be entitled to regular paid leave during the first year.
Could someone shed more info on wage categories and its difference >
We are not aware of specific wage categories, if you could provide more context, we would be happy to share more information on this.
Hello,
I’d be glad if someone can give some insight to this. Got hired by a company in Brussels, after 5 days of working, a work accident happened. Employer admitted it was really a work accident. Potential surgery is imminent, will be off work for minimum 2-3months. Questions are what happens to the contract signed, also who continues to pay the employee?( I know at some point mutuality takes over, but since it is really a work accident)
thanks
The compensation and reimbursements for employees who have had an accident at work are very diverse and the terms will depend on the extent of the insurance which is in place and type of accident. All employers are legally obliged to provide occupational accident insurance with full coverage of their potential liability.
In general, an employee who is ill is entitled to statutory sick pay during the first 30 days of absence, payable by the employer. Following the 30 days period of the employer’s obligation to pay, employees who continue to be absent are generally entitled to a sickness benefit of 60% for the first year and an invalidity benefit of up to 65% (depending on circumstances) as of the second year.
It is important that the worker checks the details and terms of the employer insurance policy.
As Belgian employees from a foreign company using Papaya, what type of contract do we have? Are we part of a specific Commission Paritaire (https://fr.wikipedia.org/wiki/Commission_paritaire_(Belgique)) ?
All workers under our EOR model will fall under the CP 200.
Hello, I’m working as field service technician,
I have read that the maximum number of working hours is 38,
But if there are technical problems I have to work more hours, do these extra hours have to be paid or not? I am under CP200.
Overtime is when you work more than 9 hours a day or 38 hours a week. Overtime is only authorized in exceptional situations, for example during an unusual overload of work, urgent work resulting from unforeseen circumstances, in the event of force majeure, etc. Overtime must be recovered within the year and gives the right to a salary increase of 50% or 100% for overtime worked on public holidays and Sundays.
So if I go over 38 hours, I have to get paid? Aren’t there rules in Belgium that say that extra hours don’t have to be paid? Still talking about the position Fiel Service Technician CP200.
Thanks for your help.
can Anyone explain why my annual salary is divided by 13.9? Is it due to 13th salary? Thank you
There are 2 extra salaries paid in Belgium – A Holiday allowance (92% salary) is paid in June and a Christmas bonus (100% salary) paid in December.
Hi .I have a contract with a Belgian company, but because of the unrest in the country, I have been at home without income for 2 months. Can I request some funding from my employer? Do I have the right to do that?
Hi, In what country are you located?
Can you confirm if a pension has to be offered to Belgium employees?
Yes, pension contributions are made as part of the Social Security contribution.
Is there any other holiday people can apply? For example, educational leave, youth holiday?
In Belgium, there are several types of leave that employees can apply for, in addition to traditional annual leave. These can include:
Educational leave: Employees may be entitled to take time off for education or training purposes. The amount of time off and the conditions for taking educational leave will depend on the specific terms of the employee’s contract and any relevant labor laws.
Youth holiday: Young people under the age of 18 may be entitled to additional holiday time, although the specifics of youth holiday can vary depending on the individual’s age, employment status, and other factors.
Family leave: Employees may be entitled to take time off to care for a family member, including time off for the birth or adoption of a child. The amount of time off and the conditions for taking family leave will depend on the specific terms of the employee’s contract and any relevant labor laws.
Hello,
I have joined a company in Belgium in Jan’23
as an external contractor through Randstad. I signed my contract starting from
Dec’22, in Aug’22, as it was needed for my single permit application (filed on
1st Sep’22). During my salary negotiations last year, they told me
that I will be eligible for the annual indexation of 2023 (11% on top of the mentioned
salary in the contract), as my contract was signed in 2022, even if I could only
start my job in 2023. But, last week, my account manager told me that he is not
sure whether I am eligible for the indexation, although he agreed/confirmed it
last year. So, my question is am I eligible for the indexation? Could you
please let me know your thoughts on it? My contract is under CP200 regime.
Thanks in advance!
Hi Aro, Anyone under CP200 who was in employment in December 2022 will be eligible for the indexation increase; if someone’s contract does not start until 2023 then technically they will not be eligible for this increase. Of course, if a salary increase was agreed upon as part of the terms of hire then the worker should consult legal/HR to address this point.
Are we able to migrate to a new payroll system at any time of the year in Belgium?
As long as salaries are maintained and paid according to the law this shouldn’t be an issue. Companies might want to avoid it in months where 13/14 salary is paid to minimise any risk for error.
My agency says that my net take home includes 4500 euros. Agency is not saying concretely that it’s 4500 euros for 12 months or 13.92 months and there are no other fringe benefits like travel allowance, RSU’s, meal and e-vouchers, company car, additional health supplement coverage etc. Not sure if this is a good net tax home salary. I have 12 years of experience in IT
Hi, we do not provide advice on salary levels for specific fields. We recommend seeking guidance from local IT experts in the respective domains.