Belgium Employer Cost and Net Pay Calculator

Thinking of employing someone in Belgium? As with every other country, certain costs are associated with employing a worker that come on top of the gross salary that you are offering. In Belgium, employers make Social Security contributions covering pension, healthcare and disability funds, unemployment insurance, workplace accidents, occupational diseases, family allowances, and holiday pay ranging from 25% to 27%.

Use our interactive employment cost calculator to see the total salary costs in Lithuania outlined in the sections above. You can also get a detailed employee cost breakdown in pdf (like this one but with actual data), which will show the take-home pay that employees will get.

Employee net pay in Belgium

In Belgium, employees pay several taxes, which are deducted from their gross salary by their employers. The income tax is progressive, ranging from 25% to 50%, and is determined by the amount of salary. Employees also contribute to social insurance, which includes contributions for pension, health and disability insurance, unemployment insurance and wage moderation contributions.

Looking for similar employment cost breakdowns for other countries? We have 28+ similar employee cost calculators.

Independent Contractor Contract & Employment Guidelines in Belgium

In Belgium, independent contracting is subject to specific regulations to ensure compliance with tax and social security obligations, prevent misclassification, and protect the rights of independent contractors.

Independent contracting in Belgium is a well-regulated form of work where individuals (referred to as self-employed or independent contractors) provide services for clients or businesses without being classified as employees. Independent contractors have greater flexibility, but they also bear more responsibility, including managing their own taxes and social security contributions.

To work as an independent contractor, individuals must be registered with the Belgian Crossroads Bank for Enterprises (Banque Carrefour des Entreprises/Kruispuntbank van Ondernemingen) and meet legal requirements regarding invoicing, taxation, and social security.

Belgium regulates independent contracting through clear distinctions between employees and independent contractors. Independent contractors must operate under self-employed status and are subject to different tax and social security regulations than employees. They are responsible for their own tax filings, VAT, and social security contributions to the National Institute for the Social Security of the Self-Employed (NISSE).

Additionally, there are guidelines to prevent false self-employment, where a contractor is incorrectly classified as self-employed but is working under conditions that resemble employment.

What makes someone an employee?

An individual is classified as an employee in Belgium if they:

1. Work under the supervision of the employer, who controls the working hours, methods, and location.
2. Are integrated into the organisation’s business and typically do not have autonomy over how work is performed.
3. Receive regular payment, with taxes and social security deducted by the employer.
4. Benefit from employee rights such as paid leave, pension contributions, and unemployment insurance.

Employee vs contractor

The primary distinction between an employee and an independent contractor lies in the degree of autonomy and control over work performed. Employees follow instructions from their employer, while contractors operate independently, controlling their work conditions.

Employees:

• Work under direct supervision and control of the employer.
• Receive regular wages and social benefits (paid holidays, sick leave, pension contributions).
• Employers are responsible for withholding taxes and paying social security contributions on behalf of employees.
• Employees are entitled to protections under Belgian labour laws, including dismissal procedures and severance pay.

Independent contractors:

• Are self-employed and work independently without direct supervision.
• Provide their own tools and have control over how and when they complete tasks.
• Are responsible for their own taxes and social security contributions.
• Do not receive employee benefits, such as paid leave, unemployment benefits, or health insurance through the employer.

Independent contractor contract length allowance

There is no strict legal limit to the length of independent contractor agreements in Belgium, but they must clearly define whether the contract is for a fixed term or ongoing. The contractor agreement should specify:

• The duration of the contract (fixed term or indefinite)
• The terms of termination for both parties

If a fixed-term contract is agreed upon, both parties must adhere to the duration specified unless both agree to end the contract early. Contracts that last indefinitely should also provide clear terms for how the agreement can be terminated.

While there’s flexibility in contract length, the contract must clearly state that the contractor retains their independent status and is not subject to the control of the client.

Penalties for Misclassification in Belgium

If a company misclassifies a worker as an independent contractor when they should be an employee, the Belgian authorities can reclassify the relationship as an employment relationship. The employer will be liable for:

• Unpaid social security contributions, retroactively for the entire period of misclassification
• Taxes not withheld on the employee’s salary
• Fines for failing to comply with labour law protections (e.g., paid leave, overtime)

Companies may also face penalties from labour inspections, as well as claims for back payments of salaries, benefits, and social security contributions. The misclassified employee can claim additional compensation, including severance pay and benefits they were entitled to as an employee.

Fixed-term employment contract limitation

Belgium allows fixed-term employment contracts, but these are subject to limitations to prevent employers from avoiding the obligations of indefinite contracts. A fixed-term contract can only be renewed a maximum of two times, and the total duration of consecutive fixed-term contracts cannot exceed two years (or three years under specific circumstances).

Employers can use fixed-term contracts to meet temporary labour needs but must convert these into indefinite contracts after the allowable duration. If fixed-term contracts are repeatedly used to avoid offering permanent employment, the contract will be considered as an indefinite contract by law.

Employers who improperly use fixed-term contracts may face legal challenges and will be required to offer the employee an indefinite contract. Employees who feel their fixed-term contracts are being abused can seek recourse through labour courts.

Employee Termination Procedures & Guidelines in Belgium

Ending employment in Belgium is a regulated process, whether it’s due to resignation, mutual agreement, dismissal, or the expiration of a fixed-term contract. Belgian labour law provides guidelines for how employment can be terminated, and these rules are in place to protect both the employee and the employer.

Key considerations include notice periods, severance pay, and the grounds for dismissal. The process also differs depending on whether the termination is initiated by the employer or the employee, and specific rules apply to collective dismissals and unfair dismissals. Employers must follow legal procedures to avoid potential legal disputes or penalties.

Termination procedure

Terminating an employment contract in Belgium can occur for various reasons, including resignation, mutual agreement, or dismissal. For indefinite contracts, termination usually requires a notice period or compensation in lieu of notice. Termination can be initiated by either the employee or the employer, but each case must follow strict legal procedures to avoid disputes.

Termination notice

Employees and employers must respect specific notice periods, which vary based on the length of service. Notice periods are typically calculated in weeks and range from 2 weeks for employees with less than 6 months of service to up to 62 weeks for those with more than 20 years of service.

If the employer or employee wishes to end the contract without respecting the notice period, they must pay compensation in lieu of notice, which is equivalent to the salary that would have been earned during the notice period.

Written notification

Termination must be given in writing, clearly stating the notice period and the reasons for termination if required (in case of dismissal for cause).

Severance pay

In some cases, particularly when employees are dismissed without notice, they are entitled to severance pay. The amount is generally based on the employee’s length of service and monthly salary.

Repercussions for breach

Failure to follow the correct termination procedure can lead to legal disputes and claims for unfair dismissal. Employers may be ordered to pay additional compensation, including back pay for the notice period, and could be liable for damages for procedural violations.

If the employer terminates an employee without a valid reason or without respecting the notice requirements, the termination may be deemed unfair, leading to significant legal and financial consequences.

Unfair Dismissal Guidelines in Belgium

Belgian law defines unfair dismissal as termination without a valid reason, without proper notice, or for discriminatory reasons (e.g., based on gender, race, age, or union membership). There are stringent guidelines governing dismissals, and employees have the right to challenge any dismissal they believe to be unfair.

Justified grounds for dismissal

Dismissal is considered fair if it is based on valid reasons, which could include poor performance, misconduct, or economic/organisational reasons (such as restructuring). The employer must be able to demonstrate a legitimate reason for the termination.

Immediate dismissal for serious cause

In cases of serious misconduct, employers may terminate the contract immediately without notice. However, the burden of proof lies with the employer, and they must prove that the employee’s actions were sufficiently serious to justify such a dismissal. Immediate dismissal must be communicated in writing within 3 working days of the employer becoming aware of the misconduct.

Legal recourse for employees

Employees who believe they have been dismissed unfairly can file a claim with the labour courts. They may be awarded damages (often equivalent to at least 3 months of salary), and in some cases, reinstatement may be possible.

Repercussions for breach

If an employer is found guilty of unfair dismissal, they may be required to pay significant damages to the employee, including compensation for moral and material damages, severance pay, and back pay for any notice period that was not respected. Discriminatory dismissals can result in additional penalties, as well as damages for discrimination claims.

Other End-of-Employment Guidelines in Belgium

Collective dismissals

A collective dismissal occurs when a company plans to lay off a significant portion of its workforce over a short period of time. Belgian law defines collective dismissals as more than 10 employees in companies with 20-100 employees, 10% of employees in companies with 100-300 employees, or at least 30 employees in companies with more than 300 employees.

Employers must consult employee representatives and notify the relevant government authorities before proceeding with collective dismissals. They must also provide detailed information on the reasons for the layoffs and the number of employees affected.

A social plan must be created to outline the support that will be provided to the laid-off employees, including retraining, job search assistance, and severance packages.

If an employer fails to follow the legal procedure for collective dismissal, they may be subject to fines and delays in executing the layoffs. Employees can also claim additional compensation if the process is not handled in accordance with the law.

End of fixed-term contracts

Fixed-term contracts in Belgium automatically end when the specified term or project is completed. However, if the contract is terminated before its expiration date, the terminating party must pay compensation equal to the wages that would have been paid for the remainder of the contract.

If an employer does not renew a fixed-term contract, no notice period is required. However, if the employer terminates the contract early without valid reasons, they are required to pay compensation.

Employers who terminate a fixed-term contract early without proper notice or compensation will be liable for damages, typically equal to the employee’s pay for the remainder of the contract.

Resignation by the employee

Employees in Belgium are free to resign from their job, but they must respect the applicable notice period based on their length of service. Failure to provide the required notice can result in the employee being required to compensate the employer.

The notice period for resignation is generally shorter than for dismissal, but employees must notify their employer in writing and adhere to the agreed-upon notice period.

If an employee resigns without respecting the notice period, they may be required to pay compensation in lieu of notice equivalent to the salary they would have earned during the notice period.

Leave Entitlement in Belgium

Belgium has comprehensive regulations regarding leave entitlements, which include annual holidays, bank holidays, and various types of paid and unpaid leave for specific circumstances. Leave entitlements are primarily governed by Belgian labour law and collective bargaining agreements (CLAs), which can provide additional benefits. Both full-time and part-time employees are entitled to paid leave, with the amount of leave typically being based on the number of days worked in the previous year. Employers are responsible for keeping track of leave and ensuring that employees can take their entitled days off.

Holiday entitlement

Full-time employees in Belgium are entitled to a minimum of 20 days of paid annual leave if they work a five-day workweek (or 24 days for those working a six-day workweek). These entitlements are calculated based on the employee's performance during the previous year (referred to as the "holiday reference year"). Employees accrue holiday rights through the number of days worked or equivalent periods during the reference year.

Employers must grant employees their full leave entitlement within the calendar year. If the leave is not taken, it cannot generally be carried over to the next year unless the employee was prevented from taking leave due to special circumstances (such as illness). The holiday allowance (a double payment, essentially) must also be provided by the employer or a relevant sectoral vacation fund (for blue-collar workers).

Bank holiday

Belgium has 10 public holidays that are required by law.

Holiday calendar

Additional holidays

In some industries or sectors, additional holidays may be granted based on collective labour agreements (CLAs). In such cases, companies may grant extra days off, especially if public holidays fall on weekends.

Types of Leave in Belgium

Sick leave

All employees in Belgium who fall ill or are injured are entitled to 30 days of paid sick leave at full salary, after that period the employee receives a percentage of their salary from social security. Employees must inform their employer as soon as possible about their illness or injury, with no specific waiting period.

Parental leave

Employees with at least 12 months of service and who have a child under 12 years old (or 21 years old in the case of children with disabilities) are entitled to up to 4 months of parental leave per parent, per child. This can be taken full-time or part-time and is available to both mothers and fathers. 

Employees can take parental leave in one of the following formats:

• Four months of full-time leave
• Eight months of half-time leave
• 20 months of one-fifth leave (one day off per week)

Maternity leave

Maternity leave includes 15 weeks of paid time off, with the possibility to extend for multiple births. Six weeks (or seven for multiple births) can be taken before the expected due date, and nine weeks can be taken after childbirth. A mother must take at least one week of pre-birth leave and nine weeks of post-birth leave. All pregnant female employees are entitled to maternity leave, with payments provided through the social security system.

Paternity leave (co-parent leave)

Fathers or co-parents of newborns, regardless of whether they are married or in a legally recognised partnership, are entitled to paid leave following the birth of their child. Paternity or co-parent leave provides 10 days off, which can be taken at any point within the first four months after the child's birth. These 10 days may be taken consecutively or split into multiple segments.

Time credit (career break)

Employees may take a career break or reduce their working hours under the time credit system, allowing flexible working arrangements. The duration varies but typically ranges from 6 to 12 months, depending on the purpose.

Time credit allows employees to stop working temporarily or reduce their hours for personal reasons. It can be taken for care of family members, further education, or personal reasons. The social security system provides a limited monthly benefit during the time credit period.

Employees with a certain length of service (usually at least 2 years) can apply for time credit leave.

Training leave

Employers are required to provide paid leave for employees attending recognised training courses related to their professional development. This includes vocational training and certain types of academic programs approved by the government.

Employers must honour this benefit, but employees are typically required to give advance notice and demonstrate that the training aligns with the professional skills required for their current or future roles.

General Employee Pay Regulations in Belgium

Belgium has a highly regulated system for employee payments, ensuring that all employees receive fair wages that comply with collective labour agreements (CLAs) or legal wage scales. Employees are protected by minimum wage laws, overtime pay rules, and specific regulations on how and when they should be paid. Employers must also ensure that salary payments are made regularly, with appropriate deductions for social security and taxes.

Employee wages in Belgium are regulated primarily through collective labour agreements (CLAs), which vary by sector and determine the minimum wages and working conditions. In addition to basic salary, employees may also receive bonuses (such as holiday pay and 13th-month pay) as part of their compensation package. Employers are required to pay salaries via bank transfer to ensure proper documentation and traceability.

Pay regulations in Belgium are governed by national labour laws, social security regulations, and CLAs. The National Labour Council ensures wage standards are maintained across different industries. Employers must also comply with rules regarding deductions for taxes and social security contributions.

Employers must issue a monthly payslip to employees, clearly showing gross pay, net pay, and all deductions (tax, social security, etc.). These payslips should also detail any allowances, overtime, or bonuses paid during that period. Employers must keep payroll records and ensure that payments are made in full and on time, following the agreed terms of employment contracts or CLAs.

Minimum wage

As of 2024, the national minimum wage for full-time workers aged 18 and over is approximately €1,954.99 per month. Employers must ensure that no employee is paid below this threshold unless there are specific exceptions for apprenticeships or internships. Any failure to meet minimum wage standards can result in legal penalties and compensation claims from employees.

Belgium has a national minimum wage system, which is periodically adjusted based on inflation and cost-of-living changes. However, many sectors establish higher minimum wage levels through collective bargaining agreements, so the actual minimum wage an employee receives may vary depending on their industry or region. 

The National Minimum Wage is set by the government and serves as the lowest amount an employee can earn for standard work. The minimum wage is higher for workers over 18 and increases based on the employee’s age and seniority. Employees under 18 may earn a percentage of the adult minimum wage, depending on their age.

Frequency

Payment frequency is regulated by Belgian labour law, which mandates that salaries must be paid at least once a month for regular employees. This frequency applies to both full-time and part-time workers unless otherwise specified in a collective labour agreement.

Employers are responsible for ensuring that wages are paid in a timely manner, typically by the end of the month for which the wages are due. Late payments may entitle employees to claim interest or other forms of compensation.

Any changes in payment frequency (e.g., weekly or bi-weekly pay) must be clearly defined in employment contracts or sector-specific CLAs.

Payday

Payday in Belgium typically occurs at the end of the month. The exact payday may vary by company, but it is generally agreed upon in the employment contract or collective labour agreements. Some employers opt to pay on the 25th or the last working day of the month, but this must be clearly communicated to employees.

Employers are required to specify the payday in the employment contract and provide at least a monthly breakdown of wages, including overtime, bonuses, and deductions. Employers must also ensure that all payments are processed on or before the agreed payday, and delays must be avoided. If an employer repeatedly fails to pay salaries on time, employees can file complaints with labour authorities, and the employer may face fines or compensation claims.

Standard Hours in Belgium

The standard working hours in Belgium are 38 hours per week. However, in certain sectors or collective bargaining agreements (CBAs), this can vary slightly, with 40-hour workweeks being permissible if compensated by additional days off (e.g., ADV days).

Employers must comply with limits on daily and weekly working hours, and any work beyond the standard hours is considered overtime. Overtime must be compensated with extra pay or time off in lieu. There are also provisions for night work, shift work, and rest periods to ensure employees are not overworked. Belgian labour laws provide protections for both full-time and part-time employees, and violations of these laws can lead to penalties for employers.

Daily working hours

The normal daily working hours in Belgium are capped at 8 hours per day, though there are exceptions in some industries (e.g., healthcare or seasonal work), where up to 9 or 10 hours per day may be allowed under specific agreements.

Part-time work

Employees working less than the standard weekly hours are considered part-time. Part-time employees are entitled to the same rights as full-time workers on a pro-rata basis, including social security and benefits.

Maximum Working Hours & Overtime Laws in Belgium

While the standard workweek is 38 hours, Belgian labour laws set an absolute maximum of 48 hours per week, including overtime, which must only be used in exceptional circumstances.

Exceptions: Specific sectors (e.g., emergency services, hospitals, agriculture) can apply for exceptions, allowing for extended hours, but these must still comply with EU working time regulations.

Overtime laws

Any hours worked beyond the standard daily or weekly working hours are considered overtime. In most cases, overtime is limited to 11 hours per day or 50 hours per week.

• Overtime pay: Overtime must be compensated with a premium, typically 150% of the regular hourly wage for overtime during weekdays. For work on Sundays or public holidays, the rate increases to 200%.
• Time off in lieu: Instead of overtime pay, employees may receive compensatory time off (also called rest days), which must be taken within a reasonable period after the overtime is worked.

Overtime conditions

• Employer approval: Overtime generally requires approval from the employer and must follow legal guidelines. In certain cases (such as urgent work or unforeseen circumstances), overtime can be worked without prior approval.
• Overtime limits: Employees are generally limited to 78 hours of overtime per quarter, with exceptions for extraordinary circumstances.
• Repercussions for breach: Employers who fail to comply with overtime laws or do not compensate employees for overtime can face fines, back pay claims, and inspections by labour authorities. Repeated violations can lead to more severe penalties, including legal action.

Working from Home Policy in Belgium

In Belgium, remote work (teleworking) is regulated under specific labour laws covering aspects like working hours, health and safety, and compensation. Employees can request either occasional (ad hoc) or structural (regular) teleworking by submitting a formal application, detailing the location, schedule, and resources they’ll need. Employers then review these requests based on role suitability, company needs, and feasibility of support, consulting HR, IT, and legal teams as needed.

If approved, a written agreement is required, outlining terms such as compensation adjustments, work schedules, and covered expenses. Health and safety requirements must also be met, with regular reviews to ensure compliance. This structure enables compliant, transparent remote work arrangements that meet legal standards while aligning with both employee and employer needs.

If the request is approved, a formal remote work agreement must be drafted. Belgian law requires this agreement to be in writing, clearly detailing the terms and conditions of the remote work arrangement. Key components include:

• • Compensation: Any adjustments or provisions related to the employee's compensation for remote work, such as allowances for internet, utilities, or other expenses.
  • Work schedule: Specific working hours and expectations, whether the employee is required to adhere to a strict schedule or has flexibility within agreed-upon parameters.
  • Costs and expenses: Details on which costs the employer will cover, such as equipment, software, or other materials necessary for remote work.
  • Health and safety requirements: Outline of any obligations regarding the employee's workspace to ensure it meets health and safety standards, along with any assessments or documentation the employer might require.

Written agreement on teleworking

Employers must have a written agreement or policy in place for remote work, which can be included in an individual contract or a collective labour agreement. This document should cover details such as the work location, duration of telework, tasks to be performed, and methods of monitoring the work. It must also specify costs covered by the employer, like internet or equipment expenses. Employers and employees should agree on the terms before remote work begins, outlining how performance is monitored, communication protocols, and whether teleworking days are fixed or flexible.

Employers are responsible for providing necessary tools or reimbursing costs related to remote work. Without a written agreement, employers may face legal disputes or penalties for non-compliance, with employees potentially claiming compensation for additional costs or disputes over working hours and workload.

Health and safety standards for remote work

Even when employees work remotely, employers are responsible for ensuring that the working environment is safe and ergonomically appropriate, meeting health and safety regulations. Employers must carry out risk assessments to determine if the home setup is adequate for long-term work. They should provide guidelines or training on creating a safe workspace, and in some cases, send a prevention advisor or require employees to complete a checklist to verify compliance.

Remote workers must also be covered under occupational accident insurance while working from home. Failure to meet these health and safety obligations can expose employers to liability if an employee is injured due to unsafe working conditions, resulting in legal claims, fines, or compensation payouts. Non-compliance with Belgian occupational health laws can also trigger inspections and penalties from labour authorities.

Data protection and confidentiality

Employers must ensure that teleworking arrangements comply with the General Data Protection Regulation (GDPR) and Belgian data protection laws, securing company data and protecting employee and customer privacy. Employees are required to follow strict guidelines for handling sensitive information. Employers should provide a secure IT infrastructure, such as VPNs and encrypted communication tools, and establish clear policies on data handling, storage, and sharing.

Employees should also be trained on cybersecurity best practices, including recognizing phishing attempts and protecting personal devices used for work. Failure to implement adequate data protection measures can lead to data breaches, which may result in significant financial penalties under GDPR, reputational damage, and loss of customer trust. Employers may also be liable for damages caused by insufficient data protection during remote work.

Reimbursement of remote work expenses

Belgian law allows for the reimbursement of certain expenses incurred by employees while working from home, such as internet usage, electricity, heating, and office supplies. Employers may provide lump-sum allowances or reimburse actual expenses. A tax-free monthly allowance, currently set at €144.31, can be offered to cover these costs, and additional reimbursements can be made for specific items like office furniture or IT equipment if required for the job. These arrangements should be clearly outlined in the remote work policy.

Failure to reimburse these costs may entitle employees to claim compensation, potentially leading to disputes or reports to labour authorities. Employers who do not comply risk fines and potential back-pay obligations.

Monitoring and performance evaluation

Employers must establish clear guidelines on how employee performance will be monitored while working remotely, including the use of tracking tools or performance metrics. These measures must comply with privacy laws and respect employees' rights. Employers should balance performance monitoring with privacy, ensuring that any surveillance is transparent, proportional, and justified.

Regular check-ins or virtual meetings can be used to track progress, but constant or invasive monitoring, such as webcam surveillance, may breach privacy laws. Inappropriate monitoring practices can lead to violations of privacy regulations, resulting in legal action by employees and significant fines under GDPR or from the Belgian Privacy Commission.

Social contact and isolation prevention

Employers must take steps to prevent social isolation and foster a sense of community among remote employees. Although this is not explicitly a legal requirement, it is crucial for employee well-being in a remote work environment. Regular virtual and in-person team meetings are encouraged, and employers should provide access to mental health support and organize team-building activities to maintain connection and engagement.

Failing to address social isolation can lead to lower employee morale, increased turnover, and burnout, all of which negatively impact the company’s productivity and culture.

Workspace guidelines in Belgium

General Employee Rights in Belgium

Employees in Belgium are protected by robust labour laws designed to ensure fair treatment, workplace safety, and social security benefits. Employees are entitled to rights regarding working hours, pay, social security, paid leave, and protection from wrongful dismissal. Belgian law provides a framework for fair compensation, safe working conditions, and work-life balance.

Right to equal pay

Employees have the right to equal pay for equal work, regardless of gender, age, nationality, or any other discriminatory factor. This principle ensures that wages, benefits, bonuses, and other financial compensations must be equal for employees performing the same work under similar conditions. If employees feel they are being paid unfairly, they can file complaints with the labour inspectorate or through their union. Employers found guilty of wage discrimination may face fines and be required to compensate the affected employees for the wage discrepancy.

Right to a safe and healthy workplace

Employees have the right to work in an environment that complies with occupational health and safety standards. Employers are responsible for ensuring workplace safety by taking measures such as providing proper equipment and minimizing job-related risks. This includes conducting regular risk assessments, offering safety training, and supplying protective equipment when necessary. Failure to comply with safety regulations can lead to fines, shutdowns, or even legal action if an employee is injured.

Right to disconnect

Belgium has introduced a right to disconnect to protect employees' work-life balance. This policy requires employers to respect employees' time outside of working hours, ensuring they are not expected to be constantly available via email, phone, or other communication tools when off-duty.

Employers must establish clear guidelines that define working hours and expectations for availability, with employees not required to respond to work-related communications outside these hours unless in exceptional circumstances. Failing to implement the right to disconnect may lead to employee complaints, legal disputes over overtime claims, or stress-related illnesses, resulting in financial penalties or compensation claims.

Employee Protections in Belgium

Protection from unfair dismissal

Employees cannot be dismissed without a valid reason, whether it is economic, technical, or personal. Employers must demonstrate legitimate grounds for termination, such as issues related to the employee's behavior, performance, or operational needs like restructuring. If these reasons are not present, the dismissal can be considered unfair.

Employees who are dismissed without a valid reason have the right to challenge the termination in labour courts, which may result in compensation ranging from a few months' salary to larger sums. Employers who dismiss without just cause may be required to pay damages, reinstate the employee, and provide severance compensation.

Protection against collective dismissals (mass layoffs)

When a company plans to lay off a large number of employees, it must follow specific rules for collective dismissal. This includes consulting with employee representatives, such as works councils or trade unions, and notifying government authorities. Employers are required to provide detailed information about the reasons for the layoffs, the number of employees affected, and the timeline.

Additionally, they must offer support like reemployment services or retraining programs. Companies that fail to comply with collective dismissal procedures may face penalties and could be forced to halt the layoffs or provide additional compensation to affected employees.

Protection against dismissal for specific categories of employees

Certain categories of employees have enhanced protection against dismissal. These include pregnant women or employees on maternity leave, trade union representatives, employees on sick leave or with disabilities, and those who have reported harassment or discrimination.

Employees in these categories can only be dismissed under very strict conditions; for instance, a pregnant employee can only be dismissed for reasons unrelated to her pregnancy and with approval from labour authorities. Dismissing an employee in one of these protected categories without proper cause or process can result in substantial financial penalties, legal action, and reinstatement.

Equal treatment and non-discrimination

Belgian law prohibits discrimination in the workplace based on race, gender, age, sexual orientation, religion, disability, and other protected characteristics. Employers must treat employees fairly in all aspects of employment, including recruitment, pay, promotion, and termination, while actively promoting equal opportunities and preventing harassment. Employers are required to ensure that HR policies comply with anti-discrimination laws, including equal pay for equal work and unbiased hiring processes while fostering an inclusive environment.

Complaints of discrimination must be promptly investigated. Employers found guilty of discriminatory practices may face significant financial penalties, compensation claims, and potential lawsuits. Regulatory bodies, such as the Institute for the Equality of Women and Men, can also intervene and impose sanctions on non-compliant employers.

Job Security in Belgium

Belgian labour law provides strong job security protections for employees, ensuring fair treatment during the termination process and safeguarding employee rights. Notice periods, severance pay, and protection from unfair dismissal are all key components of Belgium’s labour regulations, providing a secure framework for workers. Employers who fail to comply with these regulations may face legal consequences, financial penalties, and reputational damage.

Employment Conditions in Belgium

Belgium has comprehensive labour laws designed to ensure fair and safe working conditions for all employees. Employers are required to provide a safe and healthy working environment, fair wages, reasonable working hours, and opportunities for work-life balance. These regulations are enforced by the government and labour inspectorates, and breaches can result in severe penalties.

Working hours and overtime

In Belgium, the standard working hours are 38 hours per week, and employers must ensure that employees do not exceed these hours unless specified in collective labour agreements. Overtime must be compensated, typically at 150% of regular pay for weekday overtime and 200% for work on Sundays or public holidays. Any work beyond the standard 38 hours must be documented, and overtime must be paid accordingly or compensated with time off.

Overtime is often limited to specific situations, such as urgent work, and must meet legal conditions. Employers who fail to comply with working hour limits or overtime compensation may be fined by labour inspectors, and employees may seek back pay. Systematic abuse can lead to more severe penalties, including legal action.

Health and safety in the workplace

Employers in Belgium are responsible for providing a safe working environment that complies with occupational health and safety standards. This includes conducting risk assessments, implementing preventive measures, and ensuring employees receive necessary safety equipment and training. Employers must comply with the Well-being at Work Act, which covers mental well-being, ergonomic working conditions, and safety training.

Regular risk assessments must be conducted, and safety policies must be updated accordingly. A prevention advisor or occupational health officer must be appointed to oversee these standards, and employees must be informed about risks and trained to avoid accidents. Non-compliance can lead to fines, penalties, or even criminal charges in cases of serious negligence, especially if employees are injured or exposed to hazards.

Notice periods

Belgian law requires that employees receive a formal notice period before their employment contract is terminated. The length of the notice period depends on the employee's length of service, ranging from 2 weeks for those with less than six months of service to up to 62 weeks for employees with over 20 years of service. If an employer dismisses an employee without providing the notice period, they must pay compensation equivalent to the salary for the remaining notice period.

Employers who fail to comply with notice period obligations must compensate the employee for the wages they would have earned during that time.

Intellectual Property (IP) in employment

Intellectual Property (IP) rights in Belgium protect creations of the mind, such as inventions, literary and artistic works, and symbols used in commerce. IP ownership is especially important for employees involved in creative, research, or development activities. Under Belgian law, IP rights include copyrights, patents, trademarks, and trade secrets. Typically, any IP created by an employee within the scope of their employment belongs to the employer, unless the employment contract states otherwise.

Employers usually include IP clauses in contracts to clearly define ownership of creations or inventions made by employees during their employment. If these clauses are not clearly defined, disputes may arise, leading to claims from employees regarding ownership or compensation. Employers who fail to honour IP agreements could face legal consequences, including compensation claims.

Business transfer

In Belgium, business transfers, such as mergers and acquisitions, are regulated to protect employees' rights when business ownership changes. These regulations ensure that employees maintain their employment terms and conditions during a transfer. Belgian law follows the EU Transfer of Undertakings (Protection of Employment) (TUPE) regulations, which require that employees' contracts, rights, and benefits—such as salary, seniority, and other benefits—are preserved during a business transfer.

Employees are automatically transferred to the new employer under the same terms, and the new employer inherits their rights and obligations. Employees cannot be dismissed solely because of the transfer, and any planned changes require employee consultation. Failure to comply with these obligations may lead to penalties, claims of wrongful termination, and legal disputes if employees' terms of employment are negatively impacted.

Mandatory Benefits in Belgium

In Belgium, employees enjoy a comprehensive benefits package, including mandatory healthcare coverage, social security contributions (covering pensions, unemployment, and disability), and paid leave (annual, sick, and parental).

Family allowances provide financial support for children, and many employers offer additional perks such as meal and eco vouchers.

Pension contributions are mandatory, with some employers offering supplementary pension schemes, ensuring robust social and financial security for employees.

Health insurance

In Belgium, employers are required to provide health insurance coverage by making contributions to the national health system. This system covers essential healthcare services, including medical consultations, hospital care, and prescription medications. While employers must make these contributions, they do not directly manage the insurance; instead, employees often select from a range of "mutualities" (health insurance funds) to handle their claims. Employers cannot opt out of this obligation, as it is a mandatory national requirement.

Pension contributions

Employers and employees in Belgium both contribute to the state pension system, which guarantees a retirement income for workers. The amount contributed depends on the employee’s salary, and these contributions are collected by the National Social Security Office (NSSO). Employers are legally obligated to contribute; they cannot choose to exempt themselves from this duty. In addition to the statutory pension, some employers may offer supplementary pension schemes, though this is not mandatory.

Unemployment insurance

Unemployment insurance in Belgium is a statutory benefit funded through contributions made by both employers and employees. This system provides financial assistance to individuals who lose their job, helping them transition to new employment. Eligibility for unemployment benefits depends on certain criteria, including prior work history and contribution periods. Employers cannot opt out of contributing to this system, as it is an obligatory part of the Belgian social security framework.

Occupational accident insurance

Employers are legally required to provide occupational accident insurance to cover any injuries employees sustain while performing work-related activities. This insurance typically covers medical expenses, rehabilitation, and compensation for lost wages. If an accident occurs, the insurance also provides benefits to dependents in the case of a fatality. Employers must ensure this coverage is in place and cannot refuse it, as compliance is strictly regulated.

Transportation allowance

Employers in Belgium must provide a transportation allowance to assist employees with commuting costs. This requirement usually applies to public transportation, but it can extend to mileage compensation for those who drive personal vehicles. Employers can set some limits, but they are generally expected to provide support for reasonable commuting expenses.

Time credit or career break

Employees in Belgium have the right to take a "career break" or utilise "time credit," allowing them to temporarily step away from work for personal reasons, such as family care or education. During this period, employees receive a limited allowance from the government. Employers cannot refuse a time credit request if the employee meets the eligibility criteria, though they may require advance notice and documentation.

Training leave

Employers are required to provide paid leave for employees attending recognised training courses related to their professional development. This includes vocational training and certain types of academic programs approved by the government. Employers must honour this benefit, but employees are typically required to give advance notice and demonstrate that the training aligns with the professional skills required for their current or future roles.

End-of-year bonus (13th month pay)

There is a mandatory year-end bonus (13th-month pay) in Belgium after 6 months of service within the calendar year which is paid in December.

Non-Mandatory Benefits in Belgium

Group insurance (additional pension/disability insurance)

Group insurance, which typically includes supplementary pension and disability insurance, is widely offered but not mandated by law.

Meal vouchers

Many employers provide meal vouchers as part of employee compensation packages, but they are not legally required.

Eco vouchers

These vouchers are offered by some employers to promote environmentally friendly purchases, but they are not mandatory.

Company car / mobility budget

A company car or mobility budget is often provided, especially for certain managerial or sales roles, but this is not a legal requirement.

Employer Contributions in Belgium

Contributions are generally flat rates applied to the gross salary. However, for employee social security contributions (which are deducted from the employee's salary), there is a ceiling on the gross income to which some of these contributions apply.

Adjusted annually, in 2024, the ceiling for some contributions (such as pension contributions) is set at €116,554.16. Beyond this ceiling, no further social security contributions for pensions will be calculated on earnings above this amount.

Employer Social Security contribution breakdown

Tax rebates

Regional variations: Many tax deductions and rebates depend on the region in which you live (Flanders, Wallonia, or Brussels).

Income cap and specific conditions: Many deductions are subject to income caps or specific conditions that need to be met to qualify.

Employee Contributions in Belgium

The employee's income tax rate in Belgium is progressive, with tax rates ranging from 25% on the lower end to 50% on the highest incomes.

Income tax

In Belgium, individual income tax ranges from 25% to 50%, with higher rates applied to higher income brackets. Contributions are made to the Belgian government and are allocated towards social security, healthcare, pensions, and other public services. Both employees and employers are required to contribute to social security, which covers benefits such as unemployment, disability, and retirement.

Employee Social Security contribution breakdown

Hiring employees in Belgium at a glance

CURRENCY

Euro (EUR)

WORKING HOURS

38 hours per week, but sectoral agreements may slightly modify this.

PUBLIC/BANK HOLIDAYS

10 official public holidays, plus any additional sector or company-specific holidays

CAPITAL

Brussels

LANGUAGE

Dutch, French, and German (depending on the region)

REMOTE WORKERS

Belgium allows for remote work arrangements, but there are specific legal and tax obligations depending on the frequency and duration of remote work.

MINIMUM HOURLY SALARY

€12.79/hour (varies by age and sector)

TAX YEAR

Jan 1 - Dec 31

DATE FORMAT

DD/MM/YYYY

MISCLASSIFICATION PENALTIES

Misclassifying employees can result in penalties, back payments for unpaid taxes, social contributions, and fines.

FUN FACT

Belgium produces over 1,500 different types of beer, and Belgian beer culture is so rich and diverse that it has been recognised by UNESCO as part of the Intangible Cultural Heritage of Humanity.

Taxes in Belgium

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Employment tax: 

25% - 27%

Social Security contributions are generally flat rates applied to the gross salary. There is a ceiling on the gross income to which some of these contributions apply.

 

SOCIAL SECURITY CONTRIBUTION	CONTRIBUTION AMOUNT
Pension	24.92%
Health and disability insurance	3.80%
Unemployment insurance	1.46%
Workplace accidents	Approximately 0.16% (varies depending on the sector)
Family allowances	7.65%
Occupational diseases	1%
Holiday pay	Around 10.27% for blue-collar workers and 1.46% for white-collar workers
Other small contributions (e.g. wage moderation contribution)	These may add a few more percentage points depending on the specific sector and regional policies.

Employee tax: 

25% - 50% + social security contributions

Contribution to social security for employees equals 14.27% of salary.

Income tax:

GROSS INCOME	PROGRESSIVE TAX RATE
€0 - €15,200	25%
€15,201 - €26,830	40%
€26,831 - €46,440	45%
Above €46,440	50%

SOCIAL SECURITY CONTRIBUTION	CONTRIBUTION AMOUNT
Pension	7.50%
Health and disability insurance	3.55%
Unemployment insurance	0.87%
Wage moderation contribution	2.35%

Salary calculator

Use our handy calculator to understand what are all the employment costs you have to consider in Belgium.

Provide us with some extra details and we will send you a full breakdown of the salary costs.

Employer of Record in Belgium

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An Employer of Record is the legal employer of a worker in Belgium. As such, the Employer of Record takes care of all compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

The employer of Record is responsible for:

Ensuring employment is compliant with local employment laws

Processing local payroll

Filing employment related taxes and returns

Issuing payslips to the employee

Distributing salary payments

How Employer of Record works

COMPANY

Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

BOUNDLESS

Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

EMPLOYEE

The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory benefits in Belgium

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Health insurance

In Belgium, employers are required to provide health insurance coverage by making contributions to the national health system. This covers essential healthcare services, including medical consultations, hospital care, and prescription medications.

Pension contributions

The amount contributed depends on the employee’s salary, and these contributions are collected by the National Social Security Office (NSSO).

Transportation allowance

Employers in Belgium must provide a transportation allowance to assist employees with commuting costs. This requirement usually applies to public transportation, but it can extend to mileage compensation for those who drive personal vehicles.

Common non-mandatory benefits in Belgium

Read more

Group insurance (pension or disability)

End-of-year bonus (13th month pay)

Meal vouchers

Eco vouchers

Company car or mobility budget

Flexible working hours

Employee rights and protections in Belgium

Read more

Right to equal pay

Right to a safe and healthy workpalce

Right to a payslip

Protection against unfair dismissal

Anti-discrimination and equal treatment protection

Protection against collective dismissals

Leave in Belgium

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Paid time off: 20 days (24 days for those working a 6-day week) + 10 public holidays

Parental: up to 4 months per parent, per child.

Sick leave: 30 days of paid sick leave at full salary

Time credit (career break): 6 months to 12 months, usually available after at least 2 years of service

Maternity: 15 weeks of paid leave

Employment conditions in Belgium

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Employers are required to provide a safe and healthy working environment, fair wages, reasonable working hours, and opportunities for work-life balance. These regulations are enforced by the government and labour inspectorates.

Payment frequency in Belgium

Wages in Belgium must generally be paid monthly. This frequency applies to both full-time and part-time workers unless otherwise specified in a collective labour agreement.

End of employment in Belgium

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Ending employment in Belgium is a regulated process, whether it’s due to resignation, mutual agreement, dismissal, or the expiration of a fixed-term contract. Belgian labour law provides guidelines for how employment can be terminated, and these rules are in place to protect both the employee and the employer. 

Key considerations include notice periods, severance pay, and the grounds for dismissal. The process also differs depending on whether the termination is initiated by the employer or the employee, and specific rules apply to collective dismissals and unfair dismissals. Employers must follow legal procedures to avoid potential legal disputes or penalties.

Frequently asked questions

What are my options if I want to hire a worker in Belgium?

While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of each way to employ a worker in Belgium, outlining the potential cons.

1. HQ country employment & payroll
   What it is: While the person is in Belgium, they are employed and payrolled directly by the company’s HQ entity.
   Cons: This may appear attractive, but it generally isn't legal in the long term. Also, HQ payroll won't be possible if the person is not a tax resident in the HQ country.
2. Independent contractor agreements
   What it is: People are locally registered as sole traders or limited liability company owners in Belgium and invoice for their work. There is no direct employment relationship.
   Cons: In Belgium, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.
3. Direct local employer setup
   What it is: The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
   Cons: Expensive, time-consuming, high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.
4. Partnering with an Employer of Record or full-service Professional Employer Organisation
   What it is: Employment is handled by a platform that specialises in employing people on behalf of customer companies. The Employer of Record helps to hire and pay employees.
   Cons: For some countries, the ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work.

How long does it take to set up a company in Belgium?

Generally, the process of registering a company in Belgium can take anywhere from a few days to a few weeks, depending on the complexity of the company structure and the completeness of the application.

However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, and changes of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.

Can I employ people as independent contractors in Belgium?

While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in Belgium, treating them as an independent contractor is likely a breach of Belgian employment laws and of those in your country.

Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefits, maternity benefits, or other legal measures. Since the individuals you are working with do not receive the benefits of local employment laws and protections that are often afforded to people working full-time hours. Read more on why hiring remote people as independent contractors is a bad idea.

What does HR compliance mean in Belgium, and why does it matter?

When you hire employees in Belgium, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices.

Complying with local employment law in Belgium is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but also to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, and working hours regulations.

How much does it cost to employ someone in Belgium?

As with every other country, there are certain costs associated with employing a worker in Belgium that come on top of the gross salary you are offering.

To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.

What does Employer of Record mean in Belgium?

It means that Boundless is the legal employer of the individual, as far as the Belgian government, tax, and employment authorities are concerned.

We are responsible for:

• informing you about any pre-employment requirements
• ensuring employment is compliant with Belgian employment law
• informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
• providing a locally compliant employment contract
• processing local payroll
• filing employment-related tax returns
• issuing payslips to the employee
• distributing salary payments
• payments to the local tax authorities

Customers that work with an Employer of Record in Belgium are responsible for:

• sourcing and recruiting their own workers
• managing the employee’s day-to-day workload
• contributing to the personal/professional development of the employee through their work
• following any guidance we give on employment and HR best practices or legal obligations in Belgium, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
• ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

Who is responsible for filing and paying employees' taxes and social insurance contributions in Belgium if employing through an Employer of Record?

Boundless as the Employer of Record files all pertinent taxes and social security contributions as they relate to the compliant employment of an individual in their home country.

How does Boundless as an Employer of Record ensure HR compliance in Belgium?

We carefully choose employment lawyers or advisories to partner with in each country we operate in, including Belgium. They ensure the Belgian employment contracts and any other relevant documents required for new employees comply with the local jurisdiction.

We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice periods or work-from-home regulations. Whenever a potentially sensitive issue arises in Belgium, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

What are the legal responsibilities of a company when they use an Employer of Record service like Boundless in Belgium?

The company remains responsible and informs employees of the day-to-day management of the people and teams employed through Boundless, including any disciplinary or performance issues. Boundless ensures compliance with Belgium-specific procedures, practices, and labour laws while employing people and teams on behalf of the company.

Do employees get all their rights and benefits when employed through an Employer of Record in Belgium?

Any new employee who is locally employed through an Employer of Record gets full employment rights and benefits as specified in Belgium employment law. They get a locally compliant employment contract, statutory parental leave, annual leave, illness benefits, any relevant tax credits, and many more.

What taxes do I need to pay in Belgium?

In Belgium, both employers and employees have to pay social security contributions. For employers, these range between 25% to 27% of the gross salary and for employees, they amount to 14.27% of their salary. In addition to that, employees pay income tax, ranging between 25% to 50%, depending on their salary.

To get a clear overview of both employee and employer taxes, use our salary breakdown calculator to submit any additional data needed and get a downloadable PDF via email.