Employer of Record in Belgium

Hiring in Belgium for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Belgium in the following three ways:

• Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Belgium.
• Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Belgium’s labor laws and tax regulations.
• Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Businesses can only operate smoothly in Belgium if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Belgium below, to avoid any compliance issues.

Employment Contract Requirements

In Belgium, while indefinite employment contracts don't require written form by law, it's considered best practice to have a written contract outlining basic employment terms, including:

• Identification of both parties
• Commencement date
• Workplace(s)
• Description of job responsibilities and duties
• Base salary and additional compensation or benefits
• Training and non-compete agreements

Onboarding Process

We can help you get a new employee started in Belgium quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Belgium

The standard working week in Belgium is 38 hours, after which overtime pay applies (except for senior executives or managers). Employers can implement flexible schedules surpassing 38 hours weekly, given that the quarterly or yearly average remains at 38 hours. Some sectors might have lower weekly limits per collective agreements.

Overtime in Belgium

An employee can agree to an annual maximum of 120 hours of overtime. Overtime work is compensated either through time off or through pay (50% salary for weekdays and Saturdays and 100% for Sundays and public holidays).

Probation Period in Belgium

Since January 2014, the Unified Employment Status Act has abolished probation or trial periods, which are no longer allowed in Belgium.

Fiscal Year in Belgium

1 January - 31 December is the 12-month accounting period that businesses in Belgium use for financial and tax reporting purposes.

Payroll Cycle in Belgium

The payroll cycle in Belgium is usually Monthly, with employees being paid last day of the month.

Minimum Wage in Belgium

The minimum wage for employees in Belgium is typically 13.35 EUR per hour, amounting to ~2,029.88 EUR per month for a typical 38 hour work week.

Bonus Payments in Belgium

This may be required as per the applicable CBA. Employees are entitled to a 13th cheque in December, as well as a Holiday Pay, which is equal to 0.92 of gross monthly salary, payable in June.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 25% - 35% on top of the employee salary in Belgium.

Employee Payroll Tax Contributions

In Belgium , the typical estimation for employee payroll contributions cost is around 13.07%.

Individual Income Tax Contributions

Individual income tax is calculated using progressive rates ranging from 25% to 50%.

Pension in Belgium

There are mandatory pension contributions through social security, which is paid by both employer and employee. Legal retirement ages is 65 years until January 2025, 66 years until January 2030 and 67 years from February 2030.

Mandatory Leave Entitlement in Belgium

The annual leave entitlement in Belgium is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Belgium

Belgium observes 12 public holidays. If any of these holidays occur on a weekend, the day becomes a floating holiday that employees can utilise as a regular vacation day.

Paid Time Off in Belgium

Employees working a 38-hour week are entitled to 20 working days annually, adjusted accordingly for part-time schedules.

Maternity Leave In Belgium

Pregnant employees are entitled to 15 weeks of maternity leave, starting 6 weeks before birth and lasting 9 weeks after. This leave is paid as follows:

• 82% of their average salary for the first 30 days
• 75% afterward until the leave ends
• Maximum of 128.02 EUR per day

Paternity Leave In Belgium

Eligible employees get 20 days of paternity leave within 4 months of their child's birth. The leave is paid as follows:

• The employer pays the first 3 days in full.
• Thereafter, the insurance fund will be responsible to cover the benefit at 82% of the employee's average salary (up to a daily maximum cap, currently 139.97 EUR).

Sick Leave In Belgium

Employees are entitled to sick leave in Belgium. This leave is subject to the following details:

• Employees receive full salary from the employer for the initial 30 days of sick leave.
• Afterward, they typically receive sickness benefits from the government, amounting to 60% of salary.
• All sick leave requires certification from a medical professional.

Parental Leave In Belgium

Parents with at least 12 months of service in the past 15 months with the same employer are entitled to 4 months of individual parental leave, subject to the following details:

• They can take this leave together or separately.
• The leave must be utilised before the child reaches 12 years old or 21 if the child has a disability.

Adoption Leave

Employees are entitled to six weeks' leave per adoptive parent, increased by two weeks per parent if more than one child is adopted simultaneously.

Bereavement Leave

Employees can take up to 10 days of paid bereavement leave in the event of the loss of a child or partner.

Termination Process in Belgium

Employers can end an employment agreement by giving legal notice or paying compensation instead. If employees find the dismissal unjust, they can appeal to court, potentially receiving extra compensation if the dismissal is deemed unfair. Employment in Belgium may be terminated due to one of the following reasons:

• Layoffs due to business reasons
• Immediate dismissal for serious misconduct
• Subpar performance

Notice Period in Belgium

The notice period in Belgium is dependent on the length of service of the employee.

• Employer-initiated terminations require a notice period ranging from 1 week, where the employee has worked less than 3 months, to a notice period of 66 weeks where an employee has worked 25 years.
• Employee-initiated resignations have a minimum of 1 week, where the employee has been in employment for less than 3 months, reaching maximum notice period of 13 weeks, where the employee has worked for 8 years or more.

Severance in Belgium

Severance pay only applies in cases where the employer terminates the employee without notice.