Employer of Record (EOR) in Belgium

An Employer of Record (EOR) serves as the legal employer for workers in Belgium. Also known as a Global Professional Employer Organization (Global PEO), this role involves managing various aspects of employment, including strict adherence to local labor laws and regulations, payroll processing, tax compliance, employee benefits, and the creation of employment contracts.

Streamline your global expansion with our Global PEO services, an effortless solution that eliminates the need for entity setup. Our Employer of Record (EOR) services in Belgium ensure a legal presence, compliance, and protection of intellectual property (IP), allowing your business to focus on what you do best. Facilitate seamless global mobility and work visas while building a diverse and efficient global workforce. Partner with Mercans, your Employer of Record in Belgium, for a compliant and efficient employment experience for your international team.

Things you need to know before hiring in Belgium

Employment Contracts in Belgium

An employment contract serves as a crucial component in the relationship between employees and employers. In Belgium, the language of the employment contract depends on the location of the employer’s operating unit and must generally be Dutch, French, or German, depending on the region.

Types of Employment Contracts by Duration

Open-ended Contract

This contract is established for an indefinite period (permanent contract).

Fixed-term Contract

This agreement specifies a particular date, time frame, or event upon which the parties will be released from their mutual obligations.

Specific-assignment Contract

This contract does not define a duration but specifies the tasks to be completed, such as acting in a specific film or sorting fruit during harvest season.

Replacement Contract

This is established to replace an employee whose contract has been suspended for reasons other than economic downturns, adverse weather, strikes, or lock-outs.

Types of Employment Contracts by Working Time

• Full-time Employment Contract: This type of contract is for full-time employment, adhering to the normal weekly working hours applicable within the company, commonly 38 hours per week.
• Part-time Employment Contract: This contract involves voluntarily and regularly working fewer hours than the standard working hours in the company.

Working Hours

Probation Period

In Belgium, standard employment contracts do not permit probationary periods, except in a limited number of cases such as student hires, temporary agency work, and certain specific arrangements.

13th Month Salary

In Belgium, a year-end bonus, often called the 13th month, is not a universal statutory entitlement at federal level. However, it is very common and is often required by sectoral collective bargaining agreements, company-level agreements, or established company practice.

Termination, Severance Pay and Notice Period

Ending Employment Contracts in Belgium

When terminating an employment contract in Belgium, specific procedures and guidelines must be followed to ensure compliance with labor laws. This includes understanding the notice period, post-termination restrictions, and the transfer of undertakings.

Notice Period in Belgium

Typically, terminating an employment contract involves serving a notice period or making a payment in lieu of notice. Employers may choose to combine both methods. The length of the notice period is based on the employee’s duration of service and is determined by Belgian statutory notice rules.

• Less than 3 months: 1 week
• 3 months to less than 4 months: 3 weeks
• 4 months to less than 5 months: 4 weeks
• 5 months to less than 6 months: 5 weeks
• 6 months to less than 9 months: 6 weeks
• 9 months to less than 12 months: 7 weeks
• 12 months to less than 15 months: 8 weeks
• 15 months to less than 18 months: 9 weeks
• 18 months to less than 21 months: 10 weeks
• 21 months to less than 24 months: 11 weeks
• From 2 years onward: notice continues to increase progressively according to statutory seniority scales.

Employers have the option to provide a payment in lieu of notice where permitted by law.

Severance Pay in Belgium

In Belgium, severance in practice usually takes the form of compensation in lieu of notice when the employer terminates the contract without requiring the employee to serve the full notice period. There is no general standalone statutory severance payment system separate from the notice or indemnity in lieu of notice mechanism.

Overtime Pay

Overtime is generally allowed only under specific conditions and when certain formalities are observed. It should only be performed at the employer’s instruction and is usually compensated at 150% of the normal rate, or 200% for work on Sundays or public holidays, subject to the applicable legal and collective bargaining rules.

Employees vs Independent Contractors

When comparing employees and independent contractors in Belgium, it is important to consider various factors such as employment laws, hiring practices, tax documents, remuneration, rights, benefits, and contracting models.

Social Security in Belgium

In Belgium, employees and employers are both subject to social security contributions. For employees, the standard personal contribution is generally 13.07% of gross salary. For employers, the ordinary base contribution for white-collar workers in the private sector is commonly described at around 25%, but the real total cost is often higher once additional general and sectoral contributions are included. As a result, the effective employer burden is frequently closer to the upper twenties, depending on sector, worker category, and reductions that may apply.

To support low-wage earners, reductions in employer social security contributions are available, along with specific reductions for targeted groups. Belgium also applies various structural reductions and targeted measures depending on wage level and category of worker.

For employees, the social security contribution remains generally set at 13.07% and is calculated on gross remuneration. Employees with lower wages may benefit from reductions such as the employment bonus.

For blue-collar workers, contribution calculations and sectoral specifics can differ and are often more complex than for white-collar workers.

Both employer and employee social security contributions are generally deductible in determining taxable income.

Foreign employees working temporarily in Belgium under secondment arrangements or within a multi-state employment framework may be exempt from Belgian social security contributions depending on EU coordination rules or applicable bilateral agreements.

Payroll in Belgium

Registrations for Employees Subject to Belgian Social Security

Additional Required Registrations

• Social Insurance Fund for Self-Employed: Companies subject to Belgian corporate taxation may also have obligations linked to the annual corporate contribution for the self-employed system, depending on their legal position and Belgian tax nexus.

Payroll and Reporting Obligations

Social Security Contributions

In Belgium, both employees and employers are liable for social security contributions, calculated based on gross remuneration.

• Employee contributions are generally 13.07%, while ordinary employer contributions for white-collar workers in the private sector are commonly described at around 25%, with additional general and sectoral charges often bringing the effective cost higher.

Employers must:

• Complete mandatory quarterly social security declarations, reporting employee remuneration and calculating due contributions.
• Ensure contributions are paid quarterly, with payments generally due by the last day of the month following the quarter in which they are owed:
  • Q1: April 30
  • Q2: July 31
  • Q3: October 31
  • Q4: January 31

Employers whose contribution levels exceed the statutory thresholds may also need to make advance payments during the quarter.

Withholding Taxes

Belgium employs a progressive tax system, meaning higher incomes are taxed at higher rates. Individual income is categorized into:

• Immovable income
• Movable income
• Diverse (miscellaneous) income
• Professional income

Professional income, which includes payroll remuneration, is reported on the Belgian tax form Fiche 281.10 for employees. Withholding taxes deducted from payroll are credited against the final tax obligation when filing an annual return. Tax scales are published annually and reflect the employee’s taxable remuneration.

Pension Requirements

Pension entitlements in Belgium are divided into three main pillars:

• First Pillar: Statutory pensions, including old-age and survivor’s pensions, funded through social security contributions.
• Second Pillar: Company-sponsored pensions such as group insurance or pension funds. These are not universally mandatory but are common and can also be required by sectoral rules.
• Third Pillar: Individual pension savings initiated by the employee.

Ongoing Compliance for Pension Plans

Statutory pensions are funded through social security contributions. Company-provided pension plans typically define contributions as a percentage of the employee’s gross salary, with detailed rules laid down in the pension plan or insurance contract.

Payroll Requirements

• Pay Slips: Employers must provide pay slips detailing the calculation of salaries, benefits, and deductions each time remuneration is paid.
• Holiday Pay: Employees are entitled to payment for annual leave, which generally consists of:
  • Normal salary for legal holidays and ordinary vacation pay.
  • Additional holiday allowance, often referred to as double holiday pay, subject to Belgian holiday pay rules.
• The calculation of holiday pay is complex, combining fixed and variable components and differing treatments under social security rules.
• Year-End Bonus: Employees may be entitled to a year-end bonus if provided by law, collective agreements, sectoral joint committee rules, or company policy. There is no universal statutory entitlement at federal level for all employees.
• Year-End Documents: Employers must prepare individual tax forms and summary statements annually. For regular employee remuneration, tax form 281.10 and summary sheet 325.10 must be completed.

Minimum Wages

Belgium does not have a single statutory minimum wage set directly by law in the same way as some other countries. Instead, the national baseline is the guaranteed average minimum monthly income set by collective bargaining. As of 1 April 2026, this amount is €2,189.81 gross per month for full-time private-sector workers aged 18 and over, although sectoral agreements often provide higher minimum wages.

Payroll Cycle

Similar to many European countries, Belgium typically operates on a monthly payroll cycle, although wages must be paid in line with the employment contract, company rules, and applicable collective bargaining obligations.

Personal Income Tax in Belgium

Tax Rates for Belgian Residents

Belgium applies progressive tax rates for personal income tax, meaning that higher incomes incur higher tax rates. Personal income tax is calculated on all taxable income, including amounts earned or received abroad.

The progressive tax rates for income tax year 2026 (assessment year 2027) are as follows:

Example: For a Belgian resident salaried employee without dependants, the first part of taxable income is taxed at 25%, then successive portions are taxed at 40%, 45%, and 50% depending on the bracket reached.

Calculation of Basic Tax:

• 25% applies on the first €16,720
• 40% applies on the portion from €16,720 to €29,510
• 45% applies on the portion from €29,510 to €51,070
• 50% applies on the portion above €51,070

All individuals subject to personal income tax are entitled to a personal tax allowance. For income tax year 2026 (assessment year 2027), the basic personal tax allowance is €11,180. This allowance may be higher depending on personal circumstances, such as having dependent children.

Additionally, the amount of tax owed may be further reduced if taxpayers have:

• Certain types of income
• Specific deductible expenses or tax reductions

It is important to note that some income may not be taxed at these progressive rates and instead may be subject to separate tax treatment.

Tax Rates for Non-Residents

Like personal income tax, non-resident tax in Belgium also follows a progressive structure, where higher income levels result in higher tax rates. However, non-resident tax is only applicable to income earned or received within Belgium.

The progressive tax rates for non-residents are broadly aligned with the same federal rate brackets:

Non-residents whose professional income taxable in Belgium constitutes at least 75% of their total professional income may qualify for the full personal tax allowance, subject to the applicable rules and documentation requirements.

Tax liabilities may also be reduced for non-residents who have:

• Certain types of income
• Specific expenses

Several tax benefits are contingent upon having at least 75% of total professional income taxable in Belgium.

Belgium Employee Hiring Cost

Let’s assume the gross annual salary is €100,000. While this figure provides a clear starting point, it is essential to recognize that the total cost of employing talent in Belgium goes far beyond just the gross salary. Employers must consider a range of additional expenses that significantly contribute to the overall financial commitment associated with hiring an employee.

In addition to the gross salary, employers in Belgium incur substantial annual employer costs. These costs include mandatory social security contributions, occupational accident insurance, and other statutory or sectoral obligations. The exact total employer burden varies depending on worker category, sector, reductions, pension arrangements, and benefits policy.

Belgium also has specific benefits and bonuses that can further impact the overall cost of employment. For instance, double holiday pay is a major statutory payroll element for many white-collar employees. In addition, employers may also need to account for:

• Sectoral Premiums: where required by the applicable joint committee or collective agreement.
• Eco Vouchers: where provided by sectoral or company rules.
• Year-End Premiums: where required by sectoral or company arrangements.

As a result, the total annual employer cost in Belgium should always be assessed case by case rather than relying on one uniform markup.

Employee Benefits in Belgium

Belgium is known for its robust social security system and comprehensive employee benefits, which play a vital role in attracting and retaining talent in the workforce. With a strong emphasis on work-life balance and employee welfare, the country offers a wide range of benefits that extend beyond basic salary. These benefits include health coverage through the social security and mutuality framework, pensions, parental leave, and various forms of support aimed at enhancing employees’ quality of life.

In addition to mandatory social security contributions, many employers in Belgium provide additional perks and benefits tailored to the needs of their workforce. This mix of statutory and supplementary benefits reflects Belgium’s commitment to creating a supportive and inclusive work environment. Understanding these benefits is essential for both employers looking to enhance their offerings and employees seeking to maximize their entitlements and welfare in the workplace.

Work Permit in Belgium

When considering an assignment, business trip, or local employment in Belgium, several key questions need to be addressed to ensure compliance with immigration requirements. The first question is, “What is the nationality of the individual?” This is determined by their valid passport or passports.

For EEA and Swiss Nationals

EEA and Swiss nationals can travel to Belgium and engage in employment without a Belgian work permit or single permit. However, those planning to stay longer than three months must generally register with the local commune or town hall where they will reside.

Special Considerations for UK Nationals Post-Brexit

UK nationals and their family members must pay attention to their post-Brexit immigration position. Those who benefited from residence rights under the Withdrawal Agreement keep their protected status. UK nationals entering Belgium after that framework generally need the appropriate immigration authorisation, and for employment this often means a single permit or other work authorisation depending on the case.

Entry, Residence, and Employment

Short-Term Stays

For stays of 90 days or less within any 180-day period, EEA and Swiss nationals can enter Belgium with just their passport or ID card. Non-EEA or Swiss nationals may need a short-stay visa depending on their nationality, but visa-free entry does not by itself authorize employment unless a work-authorisation exemption applies.

Long-Term Stays

If EEA or Swiss nationals plan to stay for more than 90 days, they must register with the local town hall within the applicable deadline after arrival. Non-EEA nationals working in Belgium for more than 90 days will generally need a single permit, unless a specific exemption applies.

Additional Immigration Questions

The second crucial question is, “Does the individual already have residence rights in Belgium that may exempt them from needing a Belgian work or single permit?” This is checked through their Belgian residence permit or ID card.

• Exemptions from Work Authorization: Holders of certain residence statuses may be exempt from needing separate work authorization. Other exemptions may also apply depending on family status, residence category, internship status, or another specific legal ground.

If the individual does not reside in Belgium yet, a third question arises: “What activities will the individual undertake in Belgium?” Depending on the activities, there may be exemptions from the work or single permit requirement. Examples of activities that could qualify for exemptions include:

• Attendance at certain meetings or business discussions, subject to the legal limits and conditions.
• Secondment to Belgium as part of services provided by EEA companies, provided that the applicable Vander Elst conditions are met.
• Specific short-term activities subject to legal conditions, such as some intragroup training or specialized installation and repair work.

If it is determined that no exemption from the work or single permit applies, the necessary immigration documents must be identified based on:

• Duration of stay
• Type of activities performed
• Employment location, since different regional rules may apply

Immigration Actions Required

For Non-EEA/Swiss Nationals Staying Up to 90 Days

• They may need a work permit or another work authorisation unless an exemption applies.
• They must travel on the basis of their valid national passport and, if required by nationality, obtain a Schengen Visa C.
• Depending on accommodation arrangements, town hall formalities such as a declaration of arrival may also be necessary.

For Non-EEA/Swiss Nationals Staying More Than 90 Days

• A single permit application must generally be filed by the employer with the competent region. This single permit combines the right to work and the right to reside in Belgium.
• The competent region examines the work-authorisation part and forwards the residence part to the Immigration Office.
• If both parts are approved, the worker receives the authorisation needed to obtain the appropriate long-stay entry document and residence status.

If the worker is abroad, the Visa D step is generally completed after approval of the single permit. If the worker is already lawfully in Belgium, the follow-up residence formalities are handled through the local authorities where applicable.

Regional Considerations

Belgium’s labour market access is regionally governed, meaning that different regions have distinct regulations, salary thresholds, and procedural requirements. It is essential to confirm the specific conditions applicable to each individual case based on the region of employment.

EOR Solutions in Belgium

Mercans provides seamless Employer of Record (EOR) solutions for businesses that have already pinpointed their ideal candidates in Belgium. Our services cover every aspect of the employee lifecycle, ensuring compliance with Belgian labor laws and regulations.

Best Employer of Record Belgium

Mercans stands out as the leading Employer of Record (EOR) in Belgium for several compelling reasons:

• Compliance with Belgian Regulations: Mercans ensures full adherence to all legal requirements set forth by the competent Belgian authorities. This commitment to compliance guarantees that all employment practices align with local labor laws.
• Independent Entity: Operating as a standalone organization, Mercans provides tailored employment services with a focus on reliability and flexibility, ensuring that businesses receive the support they need.
• Versatile Employment Solutions: Mercans efficiently manages various employment types, including employees, freelancers, contractors, and expatriates. This versatility allows for customizable solutions that cater to diverse business needs.
• Enterprise-Ready Services: Designed to support large enterprises, Mercans offers scalable and sophisticated solutions that accommodate complex organizational structures and workforce demands.
• Multi-Currency Payroll Management: Mercans supports payroll in multiple currencies, simplifying financial operations for businesses with global and multinational interests.
• Global Network and Payroll Expertise: With an extensive international presence, Mercans excels in handling multi-country payroll, facilitating seamless operations across borders.
• Robust Data Security and Compliance: Mercans meets stringent data protection standards, including GDPR certification and compliance with SOC 1 and SOC 2 requirements, ensuring the security of sensitive information.
• ISO Certifications: Holding ISO 20000 and ISO 27001 certifications, Mercans demonstrates its commitment to high-quality IT service management and information security practices.
• OWASP ASVS Compliance: Mercans adheres to OWASP ASVS 3.0 standards, ensuring robust security practices in application development and management.
• HRBlizz Platform: The proprietary HRBlizz suite streamlines global payroll and talent management, ensuring compliance with local regulations. With a team of over 1,000 in-country specialists, it provides expert knowledge of Belgian labor laws and business practices.
• G2N Nova: G2N Nova delivers advanced gross-to-net payroll processing in over 100 countries, functioning as a SaaS or service delivery platform. It can operate independently or integrate seamlessly with major HCM and workforce management systems.