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Mercans CountryIntel ® Belgium Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Belgium

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.

Doing Business in Belgium

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

Banking Hours: 9.00 am to 4:00 pm from Monday to Friday.

Working Week

The standard working week is from Monday to Friday from 8:30 am - 5:30 pm.

Labor Law

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.

Main Industries

Engineering and metal products, motor vehicle assembly, transportation equipment

GDP Growth

0.50%

Dates & Numbers

dd/mm/yyyy

Official State Name

The Kingdom of Belgium

Population

11.52 million

Capital

Brussels

Major Languages

Dutch, French, German

Currency

Euro

Internet Domain

.be

International Dialing Code

+32

Belgium
Brussels, BE
6:21 pm, September 26, 2022
12°C
broken clouds

Payroll

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

Payslip

Payroll reports must be kept for 7 years

Reports

Employees receive paid annual leave of 20 days

Annual Leave

Employees receive paid sick leave for the first 30 days

Sick Leave

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

3 months

Employee Termination

Depends on the Joint Labor Committee.

13th-month salary

1658.23 EUR per month

Minimum Wage

Overtime payment of 1.5x the employee's ordinary rate of pay

Overtime

An employment contract may be terminated either immediately or with the grant of a notice period.

Severance Pay

Tax and Social Security

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.

Tax

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

50%

Corporate Income Tax

25%

Personal Income Tax

21%

Sales Tax

10%

VAT

Social Security

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.

38.0%

Social Security Rate

25%

Social Security Rate for Employers

13.0%

Social Security Rate for Employees

Employment Law

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.

Employment Agreement

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.

Working condition

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.

Leaves

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.

Employment termination

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.

6 months

Minimum notice period for terminating an employee

10

Total number of public holidays

38

Working hours per week

10 days

Total number of days for Compassionate & Bereavement Leave

Immigration

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.

Residency permits

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

4 years

Required Documents

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

Compliant, reliable, error-free and touchless payroll in Belgium

Build the best team and hire top talent compliantly in Belgium. Get in touch with Belgium payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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