Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The minimum wage in Belgium varies and is agreed upon in national collective agreements and are overseen by the Joint Labour Committee.
Payroll frequency is monthly, for work between the first and last day of the month. Pay date is typically the last day of the month, but can be as late as the 15th of each following month.
A 13th salary may apply depending on Joint Labour Committee.
The maximum full workweek in Belgium is 38 hours. Depending on some Joint Labour Committees, the number of working hours can be lower, however, the minimum number of hours per day is 3.
Overtime is strictly regulated and in general, prohibited.
When employees work overtime, they are paid at the rate of 150% of the regular pay during weekdays and 200% for work on weekends or public holidays.
Rules on overtime and working hours do not apply to some jobs such as sales, managerial roles, and trust roles.
Employees are entitled to 20 days if they work 5 days a week and 24 days for employees working 6 days a week.
There are 10 public holidays. An extra holiday may be applicable according to the Joint Labour Committee.
For the first 30 days of sick leave, the employer must pay the employee’s full salary. The employee is required to provide a medical certificate upon the employer’s request.
After the first 30 days of sickness, the Health Insurance Fund pays for the remainder of the sick leave.
Maternity leave is 15 weeks long and is broken down into 2 stages:
- Prenatal leave: The woman must take a minimum of 1 week before the expected due date and can take up to a maximum of 6 weeks of leave before the due date.
- Postnatal leave: A mandatory 9 weeks which starts from the date of the birth of the child.
For multiple births, the mother is entitled to an additional 2 weeks of maternity leave.
The Health Insurance Fund pays for the maternity leave as follows:
- 82% of the salary for the first 30 days of the leave
- 75% of the salary (capped at 106.9, EUR per day) from the 31st day onwards.
The father is entitled to 10 days of paid paternity leave and must be taken within the first 10 days of the birth of the child.
The first 3 days of the leave are paid by the employer and the remaining leave is paid by the Health Insurance Fund at a rate of 82% of the regular pay.
Parental leave can start from any time from the end of the post-natal maternity leave and can be taken as follows:
- A single 4-month period
- Multiple periods broken into at least 1 month each
- Temporarily reducing the working hours to 80% and can be done for a maximum of 20 months. This period can also be divided up into multiples of 2 month periods.
- Temporarily reducing the working hours to 50% for a maximum of 8 months. This period can also be divided up into multiples of 2 month periods.
- Taking off half a day per week or one full day every 2 weeks and can be done for a maximum of 40 months or divided up into several periods of 10 months each. However, the employer has the right to refuse this scheme.
Depending on the various Joint Labour Committees, leave might be given for the marriage of the employee or family member.
The termination process varies according to how the employment agreement.
The strictest form of dismissal is dismissal with notice.
Employees who have been employed for at least 6 months have the right to know the reason for the termination.
Notice period varies based on the length of employment:
- Less than 3 months of employment- 2 weeks’ notice
- 3-6 months of employment- 4 weeks’ notice
- 6-9 months of employment- 6 weeks’ notice
- 9-12 months of employment- 7 weeks’ notice
- 12-15 months of employment- 8 weeks’ notice
- 15-18 months of employment- 9 weeks’ notice
- 18-21 months of employment- 10 weeks’ notice
- 21-24 months of employment- 11 weeks’ notice
- 24-36 weeks of employment- 12 weeks’ notice
- 36-48 months of employment- 13 weeks’ notice
- 48-60 months of employment- 15 weeks’ notice
- 60 months- 19 years of employment- 60 weeks’ notice + 3 weeks for every year exceeding 5 years
- 20-21 years of employment- 62 weeks notice + 1 week for every year of employment
It is also possible to pay in lieu of notice.
Severance pay is only applicable when an employer terminated an employment agreement without notice. In this case, the severance pay would be for the same amount the employee would earn if they were given notice.
The standard VAT rate is 21%.