Hire and manage employees in Belgium

Complying with labor and employment laws in Belgium

Belgium’s labor and employment laws can be complex. The country has distinct regulations, such as annual leave entitlements and bonus payments, that vary from neighboring countries.

If you’re looking to hire in Belgium, simplify compliance work by partnering with Rippling EOR.

Employment contracts in Belgium

An employment contract establishes a legal working relationship between an employer and an employee. It typically outlines the terms and conditions of that relationship. In Belgium, a written employment agreement is not mandatory, particularly for permanent or open-ended contracts. However, fixed-term, part-time, or temporary contracts should be in writing and include key employment details like start and end dates, gross salary, benefits, and responsibilities.

While verbal agreements are considered valid for permanent contracts, employers may still choose to create a written contract. In that case, you must draft the contract in one of the official languages: French, Dutch, or German, depending on the employee’s location and/or preferred language.

In addition to contracts based on duration, Belgian law lays out varying regulations for contracts that fall into different employment categories. The four main categories are blue-collar workers, employees, sales representatives, and domestic workers. The law also provides a different set of rules for remote work contracts.

Labor unions in Belgium

Around 50% of Belgium’s workforce is unionized, a significant amount compared to the European Union’s (EU) 23% average. All Belgian employees have the right to unionize, regardless of their position or status, without facing workplace discrimination. Trade unions, also known as social partners, generally determine labor regulations or, at the very least, play a critical advisory role. Belgium has three primary interprofessional unions:

• The General Federation of Belgian Labour (ABVV/FGTB)

• The Confederation of Christian Trade Unions (ACV/CSC)

• The General Confederation of Liberal Trade Unions of Belgium (ACLVB/CGSLB)

Unlike other countries, Belgium’s union organizations are based on political or religious leanings. Each one represents a different ideology: Socialist, Christian, and Liberal (respectively).

Mitigating permanent establishment risk in Belgium

A permanent establishment (PE) refers to a fixed location, such as an office, factory, or branch, where a business regularly conducts its activities in a foreign country. If a company has a PE in another country, it might have to pay taxes there on the income earned in that jurisdiction. In Belgium, a permanent establishment may exist if the company has a physical space in the country, like:

• A place of management

• An office

• A branch

• A factory

• A workshop

• A mine or oil and gas well

Companies expanding to Belgium can mitigate their PE risk by ensuring their business activities don’t amount to a fixed place of business. Here are a few precautions to take:

• Limit employee presence. Consider how much time employees are spending in Belgium and limit cross-border telework to less than 50% of their working time within a 12-month period. 

• Monitor work records. Keep detailed documents and records of employee activities and work locations to prove you don’t have a fixed place of business in Belgium.

• Establish a local entity. If you plan to maintain a long-term presence in Belgium, creating a local legal entity may be the right move for you.

• Seek expert support. Receiving legal or tax advice from local experts can help you properly understand Belgium’s PE framework.

Probationary period in Belgium

Typically, employers use a probationary period to assess the performance of new employees. In Belgium, probation periods are not allowed according to the Unified Employment Status Act. This means that employment contracts cannot include defined probation or trial periods for employees. Instead, employers may provide a shorter notice period if they choose to terminate an employee during their first year

Local laws in Belgium

Belgium has many local regulations that differ from other European countries. Complying with these laws can get tricky, especially for employees hiring in multiple jurisdictions. Here are some critical laws and regulations to keep top of mind when growing your business in Belgium:

• A standard workweek is 38 hours. Employees can’t work more than eight hours per day (unless approved for overtime) and must perform all work between the hours of 6 a.m. and 8 p.m.

• Belgium has strict language regulations. All labor-related documents and communications must be in Dutch, French, or German, depending on where the employee is located. 

• There is no difference between sickness and disability leave. In the case of an illness or an accident, an employee will continue to receive their normal salary for 30 calendar days. After that, the Health Insurance Fund will provide sickness benefits for one year. If the leave extends beyond one year, the Medical Council for Disability will need to confirm the employee’s incapacity to work.

• The statutory retirement age in Belgium is increasing. In 2024, the mandatory retirement age is 65. However, it will increase to 66 in 2025 and 67 in 2030.

Worker Classification and misclassification in Belgium: Contractors vs. employees

Determining the proper working arrangement is key before you start hiring Belgian workers. You’ll want to consider which arrangement—independent contractor or full-time employee—is best suited for your business. Both have their own set of implications, so it’s crucial to know the differences. Misclassifying workers in Belgium can result in serious penalties, back payment of taxes, and other legal action.

Worker classification in Belgium: Key differences between contractors and employees

In Belgium, an employment contract has three essential aspects: work, remuneration, and relationship of authority. Belgian courts emphasize the importance of authority when determining proper classification. If there is a level of subordination between the contracting parties in which one can exercise an employer’s authority, they will deem it an employment relationship. A self-employed person seeking legal clarification regarding their working relationship can request a ruling from the Administrative Commission on Employment Relations (“Social Ruling Commission”). This can help reduce the risk of recharacterization and any related penalties.

Consequences of misclassification in Belgium

Misclassifying workers in Belgium can result in serious consequences. Companies may have to pay back taxes, missed social security contributions, and additional fines for violating employment regulations. Belgian law applies general and sector-specific criteria to determine whether a worker is an employee or an independent contractor, as defined by the 2006 Law on the Nature of Work Relationships. In cases of reclassification, companies must also comply with collective labor agreements, which may include salary scales and additional benefits. Additionally, companies may suffer reputational damage, making it difficult to attract top talent in Belgium.

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Wages and payroll in Belgium

Belgium has regulations similar to those of other countries in Europe regarding 13th month pay, but Belgium has a unique minimum wage standard. Learn more about wages and payroll in Belgium below.

Minimum wage in Belgium

As of May 2024, the minimum wage in Belgium is €2070.48 per month (or €12.57 an hour). Collective bargaining agreements (CBAs) are pivotal in determining wages. Most industries and sectors have their own sectoral CBAs that typically set higher minimum wages than the national one.

Payroll frequency in Belgium

The standard payroll cycle in Belgium is monthly. Most employees are paid on the last day of the month.

13th month pay in Belgium

13th month pay is an additional payment given to employees, usually equivalent to one month’s salary. Employers commonly give this payment as a holiday or year-end bonus. In Belgium, 13th month pay is mandatory for most employers under CBA 200. If an employee works for less than a full year, their 13th month bonus will be prorated based on the number of months worked.

In addition to a 13th month salary, employees are entitled to double holiday pay equivalent to 92% of their gross monthly salary during their main vacation period. All employees under an employment contract are eligible, with the amount prorated if they worked less than a full calendar year. Employees typically receive this payment once a year, often in May, June, or July.

Run payroll compliantly in Belgium

Managing employees and payroll in other countries can be complex, particularly when it comes to compliance. By working with an EOR, you can relieve yourself of the burdens of handling deductions, adhering to local wage laws, and ensuring accurate payments. Rippling EOR makes expanding your business across the globe quicker and easier than ever.

Employer and employee taxes in Belgium

In Belgium, complying with payroll tax regulations is crucial. Otherwise, employers may face significant penalties for noncompliance. Employers must generally calculate and withhold contributions for unemployment benefits, Social Security, and more from employees’ paychecks. Here are the top things to understand about employer and employee taxes in Belgium.

Employer taxes in Belgium

Here are the mandatory employer payroll taxes in Belgium:

Employee taxes in Belgium

Income tax rates vary by salary in Belgium, and employers must deduct them from employees’ paychecks as a percentage of their income:

Employees must also make the following contributions: 

Deductions may vary based on charitable donations or pension contributions. Additionally, employees receive a non-taxable allowance of €10,570 (adjusted for personal circumstances).

Penalties for not paying taxes in Belgium

Failure to file taxes on time can result in consequences. In Belgium, companies may face administrative fines ranging from €50 to €1,250, along with a tax increase that ranges from 10% to 200% (and increases for every infraction).Avoid tax compliance concerns by working with an EOR. EORs ensure payroll taxes are paid correctly and punctually for their employees. This gives your business more room to focus on growth and international expansion.

Employee benefits in Belgium

Offering competitive employee benefits in Belgium can help your company attract top talent. Understanding benefits requirements early on can also keep you from running into legal issues with Belgian authorities. Here’s an overview of the mandatory and optional benefits in Belgium.

Mandatory benefits in Belgium

Mandatory benefits are legally required, meaning employers must offer them to their employees. In Belgium, these benefits include:

• Disability benefits: Employers must pay for the first full month of an employee’s disability leave. After the initial 30 days, the state Health Insurance Fund will kick in and pay for the remainder of their leave. Hourly employees can only receive their full income for one week, after which they’re entitled to a lower rate for three weeks.   

• Eco vouchers: Employees receive up to €250 per year in eco vouchers, which they can use to purchase environmentally friendly products or services (specific to CBA 200).

• Training days: Employees are entitled to at least four full-time training days per year to support skill development (specific to CBA 200).

Optional benefits in Belgium

Offering optional and fringe benefits can significantly boost your ability to attract high-quality candidates, though deciding which ones to include may seem daunting. Below are some of the most popular additional benefits in Belgium:

• Supplementary health and life insurance: While most employees receive state-sponsored healthcare, it typically only provides partial reimbursements for medical costs. Many employers offer supplementary health insurance to help employees with out-of-pocket costs, along with life insurance coverage.

• Additional vacation leave: Offering additional leave is common in Belgium, with many employers providing extra days off—especially for more senior members of the company. This is also called seniority leave.

• Meal vouchers: This benefit is considered one of the most popular in Belgium. Meal vouchers are tax-exempt up to a certain amount daily, making them beneficial for employers and employees alike. 

• Commuter benefits: Most employers in Belgium offer commuting assistance to their employees in the form of subsidies or reimbursements. Subsidies for public transportation are particularly common.

• Company car: Another common way to help employees with their commutes is by providing a company car, paid for by the employer.

Working hours, overtime, and leave in Belgium

Understanding standard working hours, overtime regulations, and Belgian leave laws is crucial, as these requirements vary significantly from country to country. Belgian regulations are typically set at the national level, though sectoral CBAs may enforce different standards.

Standard working hours in Belgium

A standard workweek in Belgium is 38 hours per week, with a maximum of eight hours daily. Because of Belgium’s prohibition on night work, most work needs to be done between the hours of 6 a.m. and 8 p.m. Additionally, employers can’t force employees to work on Sunday, as it is an obligatory rest day.

Overtime laws in Belgium

Working overtime is atypical in Belgium and generally prohibited unless an exception applies. If Belgian employees work more than 38 hours in a workweek (or 38 hours on average over a specified period), they’re entitled to overtime pay. The overtime rate in Belgium is usually 1.5 times the normal rate, except for work performed on Sundays or public holidays, when employees receive double their normal rate. Employees generally cannot work for more than 11 hours per day or 50 hours per week, including overtime. 

Rest period and break laws in Belgium

In Belgium, employees must receive at least a 15-minute break for every six hours of work. They must also get 11 uninterrupted hours of rest between work shifts that fall within a 24-hour timeframe. CBAs determine the specific conditions regarding rest periods, which may vary based on the sector or company.

Leave laws in Belgium

Belgian employees are entitled to several types of paid leave. These leave entitlements include:

• Annual leave: Full-time employees receive 20 days of paid leave if they work five days each week. Employees with a six-day workweek get a minimum of 24 days. 

• Maternity leave: Pregnant employees are entitled to a total of 15 weeks of maternity leave. This leave typically consists of prenatal and postnatal periods, with the option to take up to six weeks before birth and nine weeks after. Employees get up to 82% of their salary for the first 30 days from Social Security and 75% for the remainder of their leave.

• Paternity leave: Fathers receive up to 20 days of paid leave, which they must take within four months of the child’s birth. The employer pays their full salary for the first three days of leave. Public health insurance pays 82% for the remaining 17 days.

• Parental leave: Parents can take an additional four months of leave after their initial leave periods until their child turns 12. This can be one continuous four-month period or split into multiple periods that are at least one month long. Alternatively, employees can opt for a reduced work arrangement of 50% for up to eight months or take a full day off bi-weekly for up to 40 months.

• Adoption leave: The adoption leave allowance is six weeks per parent. Employees must take at least one week of adoption leave. The employer pays for the first three days, while the Health Insurance Fund covers the remaining period.

• Sick leave: Employees (or white-collar workers) typically receive 100% of their salary for up to 30 days, paid for by the employer. After the initial 30 days, they can receive up to 60% of their salary from the Health Insurance Fund.

• Public holidays: Belgium has 10 official public holidays, during which employees receive holiday pay. When a holiday falls on a Sunday or another non-working day, employees are entitled to a substitute paid rest day.

• Bereavement leave: Belgian employees can take up to 10 days of bereavement leave to grieve a spouse or live-in partner, their own child, their spouse’s child, or a foster child.

Work permits in Belgium

Before your candidate starts their new job, you’ll need to ensure they can legally work in Belgium. If the candidate is not already a legal resident of Belgium or a European Union (EU) citizen, they’ll need a work permit to work in the country. The type of permit they require will depend on their circumstances.

Who needs a work visa in Belgium?

In Belgium, foreign nationals without permanent residency need to obtain a work permit. This criteria includes any person who is not a citizen of a European Union member state or Switzerland.

How long does it take to get a work visa in Belgium?

A Belgian work permit typically takes four to six weeks to process. However, if the Economic Migration Department is experiencing an influx of applications, it may take up to three months—about one month before they examine the case and another six to seven weeks for the Immigration Department to make a final decision.

Types of work visas in Belgium

Belgium offers several types of work permits with different requirements, including:

• Type B work permit: For foreign employees coming to work in Belgium for a maximum of 90 days. Some categories of workers—including cross-border workers and au pairs—can use this permit for longer than 90 days. Employers must apply for the Type B permit on behalf of their employees.

• Single permit: For future Belgian employees who plan to work for more than 90 days in the country. Employers are also responsible for initiating the application process. The required documents will vary depending on the employee’s category. An employee can extend their single permit indefinitely if they meet all the criteria regarding residency and work period.

• EU Blue Card: For highly skilled workers who wish to work in an EU country for one to four years. Employees must have a binding work contract that’s valid for at least one year and relevant professional qualifications. After two years of employment, the Blue Card is valid for any Belgian employer—meaning the employee doesn’t need to apply for a new single permit to work for a different employer.

Termination and redundancy in Belgium

When hiring your first employee in Belgium, termination procedures likely aren’t on your mind. But if you don’t understand offboarding basics, you may be setting yourself up for trouble with Belgian authorities down the line.

A Belgian employer must always have just cause to terminate an employee. They must also meet notice period requirements, which vary by employee seniority. Likewise, an employee needs to provide notice when resigning from their role.

Does at-will employment exist in Belgium?

At-will employment is a legal principle that allows both employers and employees to end their working relationship at any time, for any reason, or even without reason, as long as the termination isn't based on illegal grounds such as discrimination.

In Belgium, at-will employment does not exist, so employers must always have a legitimate reason to end an employment relationship. Among these reasons are poor performance, redundancy, employee misconduct, and violation of laws or company guidelines.

Notice periods in Belgium

A notice period refers to the time an employee or employer must provide in advance before terminating an employment relationship. In Belgium, notice periods for permanent contracts depend on the employee’s length of service. The notice periods employers must provide are as follows:

From 21 years onward, the notice period increases by one week for each additional year.

Typically, if an employer or employee decides to terminate a fixed-term contract prior to its completion date, the terminating party has to pay a compensation fee. However, terminating a fixed-term contract is allowed with proper notice during the first half of the contract (limited to six months).

Severance pay in Belgium

Severance pay is financial compensation given to an employee who is laid off, dismissed, or departs from a company under specific circumstances. Belgium does not mandate severance pay as long as the employer provides proper notice. However, if an employer terminates an employee without meeting notice period requirements, they’ll need to pay severance. The amount of pay the employee receives will vary based on their length of service.

How to terminate employees compliantly in Belgium

When managing a global team, tracking termination regulations becomes increasingly complex. Employers must contend with inconsistent just-cause criteria, different notice and probation periods, and severance laws that vary across regions and countries. An alternative is partnering with an (EOR), that can handle these compliance matters for you, ensuring that onboarding and offboarding follow legal requirements every time.

What are the requirements for work permits in Belgium?

Foreign nationals seeking a Belgian work permit must provide the required documents to kick off the application process. These documents include:

• A valid passport 

• Proof of accommodation

• Evidence of financial means

• A medical certificate of health

• Proof of a criminal record check

• Health insurance

While it is up to the employee to provide the documents, the employer is responsible for submitting the permit application. 

What are the steps to setting up payroll for a new company in Belgium?

Setting up payroll as a new employer in Belgium involves several key steps to ensure compliance with tax regulations and Belgian labor laws. Before you hire your first employee, you must:

1. Register with the Belgian Social Security Office (RSZ/ONSS).

2. Obtain a Company Number from the Crossroads Bank for Enterprises (KBO/BCE).

3. Set up a Belgian bank account to pay employees.

4. Choose a payroll provider or set up an in-house payroll system.

Alternatively, employers use an EOR like Rippling to complete work faster and handle tricky compliance tasks, such as calculating deductions and ensuring accurate payments.

What is always required when an employer terminates an employee in Belgium?

Since at-will employment doesn’t exist in Belgium, an employer must always have just cause and provide notice to the employee before terminating them. Notice periods vary by employee seniority and increase with every year of service.

Severance pay is not mandatory in Belgium, given the employer provides adequate notice. If the employer doesn’t meet notice period requirements, they’ll need to offer severance to the employee, the amount of which varies depending on their length of service.

What benefits are required for employees hired in Belgium?

In addition to paid leave, employees receive a range of mandatory benefits in Belgium, including disability benefits (employers cover the first month, with state support thereafter), up to €250 in eco vouchers annually for eco-friendly purchases, and at least four training days per year.