Employer of Record in Belgium

Hiring employees in Belgium requires a thorough understanding of local labor laws, tax regulations, and social security contributions. The Belgian employment landscape is known for its robust employee protections and comprehensive benefits system, making compliance a critical consideration for any international company looking to expand its team there. Navigating these requirements can be complex and time-consuming, particularly for businesses without an existing local presence.

Companies looking to expand their workforce into Belgium typically have a few key options to consider when it comes to employing staff. Each approach carries distinct implications regarding legal obligations, administrative burden, and overall flexibility.

• Establish a local legal entity: This involves setting up a subsidiary or branch office in Belgium, a process that requires significant time, investment, and ongoing administrative management to ensure compliance with corporate and employment laws.
• Utilize an Employer of Record (EOR): Partnering with an EOR service provider, such as Rivermate, allows companies to hire employees in Belgium without establishing a local entity. The EOR acts as the legal employer, handling all compliance and payroll responsibilities.
• Engage an independent contractor: For short-term projects or specific tasks, hiring an independent contractor might seem simpler. However, this option carries the risk of misclassification if the working relationship resembles an employment contract, potentially leading to significant penalties.

How an EOR Works in Belgium

An Employer of Record (EOR) service simplifies global expansion by taking on the legal and administrative burdens of employment. In Belgium, an EOR serves as the legal employer for your chosen team members, ensuring full compliance with local laws. This allows your company to focus on day-to-day management and strategic growth while the EOR handles the intricacies of Belgian employment. The EOR typically takes care of:

• Payroll processing: Managing salaries, bonuses, and severance in accordance with Belgian regulations.
• Tax compliance: Handling income tax, social security contributions, and other mandatory payroll taxes.
• Benefits administration: Providing compliant benefits packages, including health insurance, pension plans, and other statutory requirements.
• HR support: Offering guidance on local labor laws, managing employee onboarding, and handling terminations if necessary.
• Employment contracts: Drafting and issuing legally compliant employment agreements tailored to Belgian law.

Benefits of Using an EOR in Belgium

For companies aiming to quickly and compliantly hire talent in Belgium without the overhead of establishing a local entity, an EOR offers compelling advantages. It streamlines the hiring process and mitigates risks associated with international employment.

• Rapid market entry: Hire employees in Belgium within days or weeks, bypassing the lengthy process of legal entity registration.
• Reduced compliance risk: Ensure full adherence to Belgium’s complex labor laws, tax codes, and social security obligations.
• No need for a local entity: Avoid the significant financial and administrative burden of setting up and maintaining a subsidiary or branch.
• Cost-effectiveness: Eliminate the need for dedicated in-house HR, legal, and finance teams to manage international payroll and compliance.
• Focus on core business: Free up internal resources to concentrate on strategic objectives and business growth, rather than administrative tasks.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Belgium includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Belgium.

Belgian employers must handle social security contributions and income tax withholding for their employees. As of 2025, employer contributions to the ONSS/RSZ are approximately 25% of gross salaries, with variations based on sector and region. Employers are also responsible for deducting progressive income tax from wages, using official tables that consider individual circumstances, and remitting these amounts monthly or quarterly.

Employees benefit from deductions such as professional expenses, social security contributions, pension plans, mortgage interest, childcare costs, and dependents' tax credits, which reduce taxable income. Employers must adhere to strict reporting deadlines, submitting monthly or quarterly payroll declarations and annual tax returns, typically due by the end of June. Both parties can file online via the government portal.

Foreign workers and companies face additional rules, including taxation on Belgian-source income for non-residents, applicable tax treaties, and special expatriate regimes. Foreign firms may owe corporate tax on Belgian profits and must comply with VAT and withholding tax obligations.

Belgium's 2025 salary landscape features competitive wages across sectors, with notable variation based on industry, role, and location. For example, IT roles like Software Engineers earn between €50,000 and €80,000 annually, while Data Scientists can earn up to €95,000. Healthcare professionals such as physicians have salaries ranging from €80,000 to €150,000. Major cities like Brussels tend to offer higher salaries due to increased living costs.

Minimum wages are regulated, with the statutory minimum monthly gross wages starting at €2,018.22 for employees over 21, and lower rates for younger workers. Employers must comply with these regulations, which are sometimes supplemented by industry-specific collective agreements. Compensation packages often include bonuses such as a 13th month, holiday pay, transportation allowances, meal vouchers, and performance bonuses, which enhance overall earnings.

Payroll is typically processed monthly via bank transfer, with detailed payslips required by law. Trends indicate rising salaries driven by demand for tech talent, inflation, and a focus on skills, alongside increased transparency and flexible benefits to attract top candidates.

Belgium's vacation leave policies for 2025 provide employees with various entitlements to promote work-life balance. Full-time employees working five days a week are guaranteed a minimum of 20 paid annual vacation days, calculated based on the previous year's work. Employees also benefit from 10 public holidays, with paid time off and compensatory leave if required to work on these days.

Key data points include:

Additional leave types include parental, bereavement, study, and optional sabbatical leave, with specific conditions and benefits. Employers must stay updated on legal and collective agreement regulations to ensure compliance and support employee well-being.

Belgium's social security system requires employers to contribute approximately 25% of gross salary to fund mandatory benefits such as healthcare, unemployment, pensions, family allowances, work accident insurance, and holiday pay. Employees contribute around 13.07% of their gross salary. These contributions ensure comprehensive coverage for employees but represent a significant cost for employers.

Understanding these mandatory costs is essential for employers to maintain compliance and develop competitive employment packages in Belgium. Additional benefits beyond legal requirements are common to attract and retain talent, but the core mandatory contributions form a substantial part of the total employment cost.

Belgium's employment agreements are essential for defining the employer-employee relationship, ensuring legal compliance, and protecting rights. The law recognizes several contract types, each with specific features:

Legal regulations govern probation periods, confidentiality, non-compete clauses, contract modifications, and termination procedures. Employers must include mandatory clauses and adhere to specific rules for each contract type to ensure compliance and avoid disputes. Key data points include:

Understanding these frameworks helps employers manage employment relationships effectively within Belgian law.

Remote work in Belgium is increasingly common, supported by a legal framework that grants employees the right to request remote arrangements, with employers obligated to consider these requests reasonably and ensure safe, compliant work environments. Key regulations include provisions for work-from-home rights, employer obligations, and sector-specific collective bargaining agreements covering aspects like compensation and working hours.

Flexible work options such as telecommuting, flextime, compressed workweeks, job sharing, and part-time work are widely adopted. Employers should develop clear policies, communicate effectively, train staff, and regularly evaluate these arrangements for optimal implementation.

Data protection remains critical, governed by GDPR and Belgian laws. Employers must ensure secure devices, transparent privacy policies, breach protocols, and employee training. Additionally, they are responsible for providing necessary equipment and reimbursing work-related expenses, which are typically tax-free if properly documented. A reliable technology infrastructure—including VPNs, collaboration tools, cloud services, and technical support—is essential for effective remote work.

Belgium's employment law mandates strict procedures for employee termination, emphasizing notice periods, justifiable reasons, and documentation to ensure lawful dismissals. Employers must adhere to specific notice periods based on employee seniority, which vary from 1 week for less than 3 months of service to up to 48 weeks for over 120 months, with potential adjustments based on collective agreements or contracts.

Severance pay, calculated as the employee’s gross salary during the notice period, is required if employment is terminated without proper notice or just cause. Termination grounds are either "with cause" (serious misconduct, allowing immediate dismissal without severance) or "without cause," which necessitates notice or severance. Employers must follow procedural steps, including written notification, clear reasons, respecting notice periods, and possibly consulting employee representatives. Employees are protected against wrongful dismissal, discrimination, and specific protections for pregnant employees and representatives, with legal recourse available for unfair terminations.

Belgium offers a favorable environment for engaging independent contractors, providing flexibility and access to specialized skills across various sectors. Key to successful engagements is understanding the legal framework, particularly the distinction between employees and independent contractors, which hinges on factors like hierarchical authority, work organization freedom, and control over work processes. Misclassification can lead to significant legal and financial repercussions. Contracts must emphasize contractor autonomy, focusing on deliverables rather than work processes, and include clear terms on scope, remuneration, confidentiality, and intellectual property rights.

Independent contractors in Belgium are responsible for their own tax and social security obligations, with income tax, VAT, and social security contributions being primary considerations. Most contractors must register for VAT, charging typically 21%, and file regular returns. Insurance, while not always mandatory, is advisable, including professional liability and health insurance. Companies should ensure contractors have appropriate coverage, especially for roles in sectors like IT, marketing, consulting, and healthcare, where independent professionals are prevalent.

The structured approach to contracting and compliance ensures that businesses can effectively leverage the expertise of independent contractors while minimizing risks.

Foreign nationals seeking employment in Belgium generally need a work permit and visa, except EEA and Swiss citizens. The process varies by region (Flanders, Wallonia, Brussels), adding complexity. The most common permit is the Single Permit, combining work and residence for stays over 90 days, with application steps including employer submission, labor market test, regional review, and, if needed, visa application at the embassy. Required documents include a valid passport, employment contract, qualifications, medical and police certificates, and employer supporting documents. Fees typically range from €350 to €800, with processing times of 4 to 12 weeks.

Foreign workers can qualify for permanent residency after five years of legal residence, provided they meet criteria like stable residence, financial resources, health insurance, and integration. Family members may apply for dependent visas, allowing residence and study rights, but work authorization typically requires a separate permit.

Employers must ensure compliance by verifying work permits, adhering to labor laws, and maintaining accurate records. Employees are responsible for registering locally, maintaining valid insurance, and adhering to visa conditions. Non-compliance can lead to fines, deportation, or bans, emphasizing the importance of fulfilling legal obligations.