Mercans CountryIntel ® Belgium Payroll And HR Insights
Belgium remains in the top six most appealing European countries that attract significant foreign investment with an increase in investment projects and jobs created in 2021. There are a few key sectors which are the main drivers of FDI activity, namely, transportation and logistics, pharmaceuticals, software and IT services and manufacturing. Belgium boasts an open economy with no trade restrictions, excellent infrastructure and highly qualified workers. With over 2,000 multinational companies present, Belgium presents a suitable international business environment with the strong presence of lobby groups, diplomats and the press.
Presenting an entrepreneur-friendly environment, Belgium is one of the founding members of the European Union and a center for international institutions. There are many tax benefits, reductions and exemptions available including a federal tax exemption for a number of subsidies granted by the Regions.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in Belgium is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.
Banking Hours: 9.00 am to 4:00 pm from Monday to Friday.
The standard working week is from Monday to Friday from 8:30 am - 5:30 pm.
Belgian employment policy is based on consultation between social partners. Social consultation brings many benefits including wage cost control and workforce productivity. Generally, Belgian workers enjoy excellent protection from unemployment.
Engineering and metal products, motor vehicle assembly, transportation equipment
Dates & Numbers
Official State Name
The Kingdom of Belgium
Dutch, French, German
International Dialing Code
The Law of 12 April 1965 provides a general scheme of joint and several liability for unpaid wages. The statutory minimum wage is determined by collective agreements which are generally binding.
It is acceptable to provide employees with online payslips
Payroll reports must be kept for 7 years
Employees receive paid annual leave of 20 days
Employees receive paid sick leave for the first 30 days
Employees are entitled to 15 weeks of paid maternity leave at 75% of regular pay and 15 days of paid paternity leave at 82% of regular pay.
Maternity & Paternity Leave
Depends on the Joint Labor Committee.
1658.23 EUR per month
Overtime payment of 1.5x the employee's ordinary rate of pay
An employment contract may be terminated either immediately or with the grant of a notice period.
Belgium taxes its residents on worldwide income, regardless of their nationality. Residents are taxed on their worldwide income while non-residents are taxed on Belgian income only. The extensive social security system entitles foreigners to certain allowances and to social services.
The tax benefits of investing in Belgium include deductions for the final taxed income, dividends received being 100% exempt, the carry-over of tax losses to subsequent years being unlimited and investment deductions for investments in new assets
Corporate Income Tax
Personal Income Tax
Everyone in Belgium is entitled to social services from the public social welfare center, CPAS/OCMW. Coming2Belgium is a special online tool developed by the social security institutions to help individuals discover what they are entitled to under the Belgian social security system.
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
The mandatory provisions of Belgian employment law apply to any employee working in Belgium. Employees (as opposed to self-employed individuals) are protected by strict employment laws.
The Belgian law on employment contracts sets out rules for four categories of workers: blue-collar workers, employees, sales representatives and domestic workers. There are also specific rules for employment contracts for remote workers and students.
In principle, it is prohibited to exceed the daily and weekly working time limits. But there are a few derogations such as during the summer period or periods of intense activity for companies within the construction sector.
In general, workers may not be employed on 10 statutory public holidays each year, regardless of their job, rank or duration of their work. Workers may be employed on a public holiday in the case of derogations where work on Sunday is permitted.
Termination notice must be provided in writing and comply with mandatory language requirements. Notice periods vary depending on whether the individual is a white-collar or blue-collar worker and their length of service.
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
Total number of days for Compassionate & Bereavement Leave
Foreign workers must have a work authorization (evidenced by a work permit) in order to work in Belgium. Since 2019, there has been a single permit situation, that is, the residence document indicates whether the individual concerned has a work authorization.
An individual wishing to stay in Belgium for over 90 days must apply for a residence permit, whatever the purpose of the stay (work, study, research or more). Such an application must be submitted abroad but may be submitted in Belgium in exceptional circumstances. A residence permit is issued for a limited period and the individual receives an A card.
Work Permit Validity
A valid passport and copies of each passport page
Proof of accommodation in Belgium
Evidence of sufficient financial means
A police background check
A medical certificate of health
A work permit
Build the best team and hire top talent compliantly in Belgium. Get in touch with Belgium payroll outsourcing & PEO specialists for a free consultation!