Payroll in Belgium is the total amount of wages paid by the company. Moreover, the term also encompasses the list of employees who are due payment according to their employment agreement. It also refers to the practices of making the needed deductions to pay the due employer’s taxes to the Belgian authorities. The payroll process is an essential for the good functioning of any company. Payroll starts as soon as the legal entity hires employees in Belgium. Our partner accountants in Belgium offer complete packages for companies of all sizes that also include payroll management solutions. Please reach out to us for more information about how we can assist you.
| Quick Facts | |
|---|---|
| Do you provide payroll services? | Yes |
| Gross monthly minimum wage in Belgium | Not applicable in the private sector |
| Minimum wage regulation | Collective bargaining on the national minimum wage, according to law |
| Salaries payable on a mandatory date | Not the case |
| Gross salary stipulation requirements | The gross salary is included in the employment contract |
| Main deductions from the gross salary | Social contributions and income tax |
| Authority that collects social contributions in Belgium | The National Office of Social Security |
| Authority that collects the income tax in Belgium | The Federal Public Service Finances |
| Net salary amount determination | The employee keeps the remaining amount after all the mandatory deductions. |
| Employer liable for social security contribution in Belgium | Yes |
| Employer’s portion of the social security contribution for blue-collar workers | Base contribution of 30.57% of 1.8 times the gross salary |
| Employer’s portion of the social security contribution for white-collar workers | 25% of the gross salary |
| Additional employer’s contributions | In the case of blue-collar workers, subject to conditions. |
| Conditions under which the employer’s social security contributions vary | The size of the company and the industry in which it operates. |
| Employee liable for social security contribution in Belgium | Yes |
Table of Contents
Payroll management in Belgium
Like most other countries, Belgium uses monthly payroll. This means that the employer makes monthly payments to its employees. The payslip is the proof of this payment, and it is issued as part of the payroll activities, once the wage transfer has been made to the employee.
Companies have two options concerning payroll in Belgium: they can use an internal system dedicated to this practice, or they can employ the services of a third party, a company that offers tailored solutions.
The Belgian labor law distinguishes between two categories of workers: white-collar, and blue collar. This means that not any payroll activities will be performed by taking this into consideration.
Some of the activities associated with payroll in Belgium include the following:
- Employee time and attendance;
- Salary and benefits calculation;
- Wage payments on a monthly basis;
- Keeping electronic payslips/payroll records;
- Withholding the payroll tax (please see below);
- Making the needed social security contributions.
Outsourcing payroll in Belgium will mean that a third party handles these steps. By doing this, the company owners will have the time to focus on growing their business, at the same time making sure that the rights of their employees are observed, and that the company is compliant with the taxes and duties due for having employed staff in the country.
Our employment lawyers in Belgium can provide you with more information on the relevant labor laws, and the duties and responsibilities of employers.
We invite you to watch a video about this topic:
Payroll deductions in Belgium
Belgium doesn’t have a dedicated payroll tax but requires withholding income tax and managing social security contributions. This can be managed through our payroll services in Belgium.
In some cases, partial professional withholding tax exemptions apply, such as in the case of researchers, or for certain types of employment (such as night work, or shift work).
As far as social security contributions are concerned, the following rates are relevant:
- The employer’s total contribution for white-collar workers is 25%. Some additional contributions, varying on the work sectors, can raise the total to about 27.50%. Our payroll specialists in Belgium will determine the exact rates;
- The employer’s total contribution for blue-collar workers is generally higher but depends heavily on the industry. Our Belgian lawyers can provide more information on these industries;
- Employee must pay 13.07% on social contributions. Employees earning approximately EUR 3,200 or less per month receive an automatic reduction in their contributions.
Please note that for blue-collar workers, both the employees’ and employers’ contributions should be calculated at 108% of the normal gross salary. It is also worth mentioning that for certain employers, reductions apply to social security contributions. Our accountants in Belgium can help with these deductions.
Some foreign nationals working temporarily in Belgium can be exempt from paying social security contributions if there is a bilateral or multilateral agreement.
Our lawyers can give you more information about the tax on payroll in Belgium, as well as the employer’s social security contributions upon request.
Mandatory leaves in Belgium
The maximum annual leave entitlement for employees is 4 weeks. However, employees who did not work the previous year or who switched from part-time to full-time are not entitled to 4 weeks. They can receive some supplementary leaves, based on their contract. Payroll in Belgium must take into account these specific leave adjustments.
Belgium also offers some special types of leaves for young and senior employees. Our Belgian lawyers can offer more details about them.
In terms of sick leaves, white-collar employees are entitled to their full salary for the first 30 days. Blue-collar workers receive their full salary for the first 7 days. Self-employed individuals can hire a substitute entrepreneur to run their business temporarily if they cannot work due to illness. Substitution is allowed only for 30 days/year. Our payroll services in Belgium will handle the various aspects of sick leave management.
Additionally, Belgium offers various types of thematic leaves. These include parental leave, palliative care leave, leave to care for a seriously ill family member, and leave for informal care.
Belgium also has 10 public holidays, where employees are generally not expected to work. It is also not allowed to employ workers on Sundays in Belgium. Exceptions apply to certain work sectors.
Our law firm in Belgium can help employees who are not receiving their mandatory leave entitlements.
Statistics about the workforce in Belgium
In the context of employment and payroll in Belgium, our team has gathered some statistics about the workforce in the country in the first quarter of 2024:
- 71.9% of people aged 20-64 are employed;
- 59.1% of people aged over 55 are employed;
- The unemployment rate is 5.8% for people aged 15-64;
- The activity rate was 70.3%.
If you are interested in other tax matters, such as VAT or corporate tax issues, as well as annual reporting and filing matters for companies, please reach out to our accountants in Belgium.
Our lawyers in Belgium assist both companies and individuals. If you have questions about our legal services or require legal advice and representation in a particular area of law, contact our law firm in Belgium. Our team can also help you start a business in Belgium.