Key Facts to Hire in Belgium
Brussels
Capital
Euro (EUR)
Currency
Dutch, French, German
National language
11,632,326
Total population
3.24%
GDP growth
0.54%
Total country’s GDP world share
Monthly
Payroll frequency
38 hours per week
Total working hours
Overview in Beglium
Belgium, a small but influential Western European nation, has played a pivotal role in European affairs since its independence in 1830. Strategically located at the crossroads of Western Europe, Belgium has been a battleground in both World Wars and now hosts the headquarters of the European Union and NATO in its capital, Brussels. The country’s unique federal structure accommodates three main linguistic communities: Dutch-speaking Flanders in the north, French-speaking Wallonia in the south, and a small German-speaking community in the east. This linguistic diversity has shaped Belgium’s political landscape and cultural identity. Economically, Belgium has transformed from a 19th-century industrial powerhouse to a modern, service-oriented economy with strengths in chemicals, pharmaceuticals, and diamond trading.
Belgium’s workforce is highly skilled and multilingual, contributing to its success in attracting international businesses and institutions. The service sector dominates the economy, complemented by high-tech industries and a robust logistics network centred around the port of Antwerp. Despite its economic strengths, Belgium faces challenges including a high public debt, regional economic disparities, and the need to integrate immigrant communities. The Belgian workplace culture blends Flemish pragmatism with Walloon expressiveness, resulting in a business environment that values consensus-building and social dialogue. This approach is reflected in the country’s strong tradition of collective bargaining and social security systems, which have helped maintain relative social stability despite linguistic tensions.
Employer of Record in Belgium
Hightekers is a global Employer of Record service that helps you hire employees in Belgium without the hassle of setting up a local entity. We handle all the legal and compliance matters as the official employer for your Belgium team, allowing you to concentrate on growing your business.
How does it work?
When you hire employees in Belgium through Hightekers, we take on the role of the legal employer for your staff. This allows us to manage all employer responsibilities while you continue to oversee the daily operations and management of your employees.
As the company, you oversee direct relationships with employees, assigning tasks and managing their performance. Hightekers handles local payroll, contracts, HR, benefits, and compliance matters.
Responsibilities of an Employer of Record
As an Employer of Record in Belgium, Hightekers manages all aspects of employment administration. We create and manage employment contracts, run monthly payroll, provide local and global benefits, ensure 100% local compliance, and offer local HR support. This comprehensive service allows you to focus on your core business operations.
Responsibilities of the company that hires the employee
When hiring through an Employer of Record, your company retains control over key employee management aspects. You’re responsible for day-to-day management, work assignments, performance management, and employee training and development. This arrangement allows you to maintain direct oversight of your team while we handle the administrative complexities.
Taxes in Belgium
Income Tax: Progressive rates from 25% to 50%, with the highest rate applying to income over €42,370. Employers withhold tax and social security contributions from employees’ salaries.
Corporate Income Tax: Standard rate of 25%. SMEs benefit from a reduced rate of 20% on the first €100,000 of taxable income.
Social Security Contributions: Employees contribute approximately 13.07% of gross salary. Employers contribute around 25% of the employee’s gross salary.
VAT System: Standard rate of 21%. Reduced rates of 6% and 12% apply to certain goods and services. Businesses with annual turnover exceeding €25,000 must register for VAT.
Tax Incentives:
- R&D tax credit: 13.5% of qualifying expenditure
- Patent income deduction: 85% of qualifying patent income
- Notional interest deduction: allows companies to deduct a percentage of their equity from taxable income
Other Taxes:
- Real estate tax: varies by region, typically 1.25-2.5% of property value
- Stock exchange tax: 0.12-1.32% on securities transactions
- Inheritance and gift tax: progressive rates up to 80%, varying by region and relationship to the deceased
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Leave in Belgium
Leave patterns in Belgium, like in many countries, are influenced by cultural, legal, and economic factors. Here’s a summary of typical leave types:
Annual Leave: 20 days minimum for full-time employees, based on days worked previous year.
Public Holidays: 10 paid public holidays annually.
Sick Leave: Unlimited, with salary guaranteed for the first month.
Maternity Leave: 15 weeks, with potential for extended unpaid leave.
Paternity Leave: 15 days within 4 months of birth.
Parental Leave: 4 months per child until the child turns 12.
Time Credit: Up to 51 months for various personal reasons.
Career Break: 1-5 years for personal development or family care.
Bereavement Leave: 1-3 days, depending on the relationship to the deceased.
Marriage Leave: 2 days for employee’s marriage.
Belgium also offers specific leaves like:
- Civic Duty Leave: For jury duty or election duties.
- Prophylactic Leave: For pregnant workers in potentially harmful jobs.
- Political Leave: For elected officials.
Each country implements its own unique leave policies, and Belgium’s system reflects its commitment to work-life balance and employee well-being.
Benefits in Belgium
Belgian employees enjoy a comprehensive benefits package heavily influenced by a robust social security system. Mandatory contributions fund pensions, unemployment, healthcare, and workplace injuries.
Core Benefits:
- Healthcare: Employers often supplement mandatory social security with private health insurance plans to cover gaps.
- Pensions: A two-pillar system includes state pensions and employer-sponsored plans.
- Paid Time Off: Generous allowances include annual leave, public holidays, and paid sick leave.
- Parental Leave: Both parents receive substantial paid leave for newborns.
- Disability Insurance: Covers income loss due to work-related or non-work-related disabilities.
Additional Benefits:
- Meal Vouchers: Common perk to offset food costs.
- Company Cars or Mobility Budgets: Popular options for transportation.
- Flexible Working: Becoming increasingly prevalent to improve work-life balance.
Note: Benefit packages can vary by company size and industry. While the social security system provides a strong foundation, supplementary benefits enhance employee satisfaction.
Workers Rights in Belgium
Belgium’s employment laws provide robust protections for workers. Termination requires notice or compensation, with specific procedures for collective dismissals. Anti-discrimination laws cover various grounds, including gender, age, and ethnicity. Work hours are limited to 38 per week, with mandatory rest periods and overtime compensation. Minimum wage rates are set by sector, and salary indexation is applied annually.
Leave entitlements include 20 days of paid annual leave, public holidays, and various types of family-related leave. Occupational health and safety regulations are comprehensive, with employers required to conduct risk assessments and provide safe working environments. Belgium’s social security system covers health insurance, unemployment benefits, and pensions. Dispute resolution mechanisms include labour courts and mediation services.
Union membership is high, with strong collective bargaining rights. Special provisions exist for part-time workers, fixed-term contracts, and temporary agency work. Regional variations in labour laws exist between Flanders, Wallonia, and Brussels. Recent reforms have focused on work-life balance and digitalisation in the workplace. The “Law on Workable and Flexible Work” introduced measures for more flexible working arrangements.
Agreements in Belgium
In Belgium, employment agreements are governed by a comprehensive legal framework that ensures the protection of both employers and employees. The country recognises several types of employment contracts, including indefinite-term contracts (the most common), fixed-term contracts, and specific task contracts. Each type has distinct characteristics and legal implications.
Key terms and conditions in Belgian employment agreements typically include job description, working hours, remuneration, benefits, and notice periods. Legal compliance is crucial, with agreements adhering to national labour laws, collective bargaining agreements, and EU directives. Dispute resolution mechanisms are often outlined, with many agreements specifying procedures for addressing conflicts through internal channels or labour courts. Confidentiality and non-compete clauses are permissible but must be reasonable in scope and duration to be enforceable.
Amendments to employment agreements in Belgium generally require mutual consent, and unilateral changes are limited. Termination procedures are strictly regulated, with specific notice periods and potential severance payments based on seniority. The legal framework also mandates certain protections against unfair dismissal. It’s important to note that while these elements form the basis of most Belgian employment agreements, specific terms can vary depending on the industry, company size, and individual negotiations.
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Remote Work in Belgium
Remote work in Belgium has gained significant traction, particularly since the COVID-19 pandemic. The legal framework for telework is primarily governed by Collective Labour Agreement No. 85, which outlines the rights and obligations of both employers and employees. Belgium’s robust technological infrastructure, with widespread high-speed internet access, supports effective remote work practices.
Employers in Belgium must provide the necessary equipment and cover work-related expenses for remote employees. They are also responsible for ensuring proper ergonomic setups and adhering to strict data protection regulations under the GDPR. Flexible work arrangements are common, with many companies offering a hybrid model. Remote work agreements must be formalised in writing, detailing specific terms and conditions.
Tax considerations for remote work in Belgium can be complex, especially for cross-border situations. Culturally, Belgians value work-life balance, which aligns well with remote work practices. Best practices include clear communication policies, regular check-ins, and fostering a strong remote work culture. As remote work continues to evolve in Belgium, employers should stay informed about legal updates and adapt their policies accordingly to ensure compliance and maximise the benefits of flexible work arrangements.
Working Hours in Belgium
Standard working hours in Belgium are typically 38 hours per week, with a maximum of 9 hours per day. The workweek is usually spread over 5 days, but some sectors may have different arrangements.
Overtime is generally permitted but restricted. Employees can work up to 11 hours per day and 50 hours per week, including overtime. Overtime must be compensated with either additional pay or time off.
Belgium recognises various shift types, including day, evening, and night shifts. Shift work is regulated to ensure adequate rest periods between shifts.
Employees are entitled to a 15-minute break for every 6 hours worked. For workdays exceeding 6 hours, a 30-minute break is mandatory.
Night work (between 8 PM and 6 AM) is subject to stricter regulations. Night workers are entitled to additional protections, including health assessments and limited working hours.
Weekend work is generally restricted, with Sunday being a mandatory rest day for most workers. Exceptions exist for certain sectors, such as hospitality and healthcare.
Belgium places a strong emphasis on health and safety standards in the workplace. Employers must conduct risk assessments, provide necessary safety equipment, and ensure proper training for employees.
Special considerations for a safe working environment include ergonomic workstations, proper lighting, and measures to prevent work-related stress. Employers must also implement policies to prevent harassment and promote well-being at work.
Salary in Belgium
Belgium’s salaries are influenced by factors like education, experience, industry, and location. Brussels, as the capital and EU hub, often offers higher wages. Resources for salary research include official statistics from Statbel and job portals like StepStone.
Belgium has no national minimum wage but uses a system of minimum pay scales set by collective bargaining agreements. These vary by sector and are regularly adjusted for inflation.
Employee compensation typically includes a base salary, holiday pay, and a year-end bonus. Many employers offer additional benefits like meal vouchers, company cars, and private health insurance.
Payroll practices involve monthly salary payments, with employers responsible for social security contributions and income tax withholding. Belgium has strict health and safety standards enforced by the Federal Public Service Employment, Labour and Social Dialogue.
Tax considerations are complex, with progressive income tax rates and high social security contributions. Belgium has one of the highest tax burdens in Europe, but this funds extensive social services.
Special considerations include Belgium’s linguistic divisions, which can affect job opportunities and salaries in different regions. The country’s strong union presence also plays a significant role in wage negotiations and working conditions.
Termination in Belgium
Legal Basis:
The primary legal framework for employment termination in Belgium is the Employment Contracts Act of 1978. This legislation is supplemented by various Collective Bargaining Agreements (CBAs) that may provide additional protections or requirements specific to certain sectors or industries.
Notice Periods:
Notice periods in Belgium are primarily determined by the employee’s seniority and sector. For white-collar workers, the standard notice period is typically three months for every five years of service. Blue-collar workers generally have shorter notice periods, which can vary significantly depending on their specific sector as outlined in relevant CBAs.
Severance Pay:
Severance pay is only required in situations where the notice period is not given or is shortened. The amount is calculated based on the employee’s annual salary and length of service. This compensation is intended to bridge the gap between jobs and provide financial security during the transition period.
Termination Procedures:
Termination in Belgium requires a written notice to be provided to the employee. If requested, employers must provide reasons for the termination. There are specific rules governing collective dismissals and the termination of protected employees, which employers must carefully adhere to in order to avoid legal complications.
Employers Terminating Employees:
When terminating an employee, employers must have valid reasons such as poor performance, misconduct, or economic factors. They must provide either the required notice period or payment in lieu of notice, as well as severance pay if applicable. Special procedures apply for protected employees, such as pregnant workers, requiring extra caution and often additional legal steps.
Employees Resigning:
Employees choosing to resign must provide written notice to their employer. The notice period for resigning employees is typically half of what would be required of the employer. Employees who resign are not entitled to severance pay but must fulfil their notice period obligations unless otherwise agreed with the employer.
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Freelancing in Belgium
Freelancing in Belgium operates within a complex legal framework that distinguishes between employees and independent contractors. Belgian law recognises freelancers as self-employed individuals with significant autonomy in their work, but this comes with increased responsibilities. Freelancers must register as self-employed, handle their own social security contributions, and manage their taxes, unlike employees who benefit from employer-provided protections and benefits.
Contracts play a crucial role in defining the freelance relationship, outlining scope, deliverables, and terms. Intellectual property rights typically remain with the freelancer unless explicitly transferred. Belgium’s tax system for freelancers involves quarterly advance payments and annual returns. The distinction between employee and contractor status is strictly enforced, with potential legal consequences for misclassification.
Freelancing is prevalent across various industries in Belgium, particularly in creative, IT, and consulting sectors. While offering flexibility and potential tax advantages, freelancing in Belgium requires careful navigation of legal and financial obligations. Freelancers must balance the benefits of autonomy with the responsibilities of self-employment, making informed decisions to ensure compliance and success in their ventures.
Health and Safety in Belgium
Belgium has a comprehensive occupational health and safety framework primarily based on the Well-being of Workers Law of 1996 and its subsequent amendments. This law, along with various royal decrees, implements European Union directives and sets out the fundamental principles for workplace safety and health. Employers in Belgium are legally obligated to conduct risk assessments, implement preventive measures, and provide necessary training and information to their employees. They must also appoint internal or external prevention advisors to assist with health and safety matters. Employees have the right to be informed about workplace hazards, receive appropriate training, and participate in health and safety discussions through committees in larger companies.
The Belgian government enforces these regulations through labour inspectorates, which have the authority to conduct workplace inspections and issue penalties for non-compliance. Employers are required to report serious accidents and occupational diseases to the appropriate authorities, and investigations are conducted to prevent future occurrences. Belgium also has specific regulations for various industries and hazards, including working with hazardous substances, noise exposure, and ergonomics. The country emphasizes a preventive approach to occupational health and safety, encouraging continuous improvement and adaptation to new workplace challenges. This comprehensive system aims to ensure safe and healthy working conditions for all employees across various sectors in Belgium.
Dispute Resolution in Belgium
Legal Frameworks with Respect to Labor Laws:
Belgian labour law is governed by federal legislation, collective agreements, and individual employment contracts. Key laws include the Employment Contracts Act and the Well-being at Work Act.
Dispute Resolution Processes:
Belgium employs a multi-tiered system involving workplace-level negotiations, conciliation, mediation, and labour courts. Social dialogue and collective bargaining play significant roles in dispute resolution.
Enforcement Mechanisms:
Labour inspectors enforce labour laws. Labour courts have jurisdiction over employment disputes. Decisions can be appealed to higher courts, with the Court of Cassation as the final arbiter.
Challenges:
Language barriers in a multilingual country can complicate proceedings. The system’s complexity and potential for lengthy processes may deter some employees from pursuing claims.
Whistleblower Protections:
Belgium has implemented EU Directive 2019/1937 on whistleblower protection, offering legal safeguards against retaliation for reporting breaches of EU law in various areas.
International Influence:
As an EU member, Belgium’s labour laws are influenced by EU directives. It has ratified numerous ILO conventions, incorporating international labour standards into national law.
Compliance Monitoring:
The Federal Public Service Employment, Labour and Social Dialogue oversees labour law compliance. Social partners and joint committees also play roles in monitoring and enforcing collective agreements.
Cultural Considerations in Belgium
Belgium’s employee culture is characterized by a unique blend of influences from its three main regions: Flanders, Wallonia, and Brussels. The country’s multicultural and multilingual nature significantly impacts its business environment, making cultural awareness crucial for successful interactions.
Communication Styles
Belgians generally prefer direct and straightforward communication, though they may be more reserved than their Dutch neighbours. In Flanders, communication tends to be more direct, while in Wallonia, a slightly more indirect approach is common. Proficiency in the local language (Dutch, French, or German) is highly appreciated.
Non-Verbal Communication
Belgians maintain a moderate personal space and are generally reserved with physical contact in business settings. Eye contact is important, but prolonged staring may be perceived as impolite. Handshakes are the standard greeting in professional contexts.
Negotiation Style
Belgian negotiators value compromise and consensus-building. They tend to be pragmatic and detail-oriented, preferring well-prepared presentations backed by facts and figures. Patience is key, as decision-making often involves multiple stakeholders and can be a lengthy process.
Employee Culture and Structure
Belgian workplaces typically have a hierarchical structure, though less rigid than in some other European countries. Respect for authority is important, but employees also expect to be consulted on decisions affecting their work. Work-life balance is highly valued, and overtime is not as common as in some other cultures.
Public Holidays and Work Schedules
Belgium observes numerous public holidays, including religious and national celebrations. The standard work week is 38 hours, with many companies offering flexible working arrangements. Annual leave is generous, typically starting at 20 days per year plus public holidays.
Belgians place high importance on punctuality in business settings. Meetings often begin with small talk, and building personal relationships is considered important for successful business partnerships.
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