Belgium payroll and benefits guide

What global businesses need to know about payroll in Belgium

Think Belgium and you might think of frites and mayonnaise, strong beer, luxurious chocolate and a passion for cycling. But as a prosperous western European nation, it’s a great place for international business, too.

That’s in no small part down to its status as one of the world’s major political and commercial centers: after all, its capital Brussels is the home of both the European Union and the North Atlantic Treaty Organization (NATO). It has a predominantly service-based economy (accounting for around 80% of GDP), and with around 11.5 million people crammed into less than 31,000 square kilometers, accessing talented workers from across the country is relatively easy.

Belgium’s strong global trade links makes it an easy country in which to expand an international business. But from a payroll and employment perspective, there are some complexities, especially when collective bargaining comes into play. This guide gives you the most up-to-date information around running payroll in Belgium.

Getting Started with Belgium payroll

Foreign investors are welcomed and treated in the same way as local ones, and companies are not required to legally register in Belgium to deliver a Belgian payroll. Making things even simpler, you can complete all the key steps to setting up a business in Belgium online:

Incorporating your company, including submitting articles of association and notarized deeds
Register your business with the Crossroads Bank for Enterprises
Register with the VAT authorities
Register your business as an employer with the National Social Security Office, and submit a formal statement at the point when you hire your first employee in the country

Setting up a Belgian bank account isn’t compulsory, but it is advisable to do so as it can ease the process of paying employees and remitting tax and social security payments.

Employment Considerations

It’s important to note that blue-collar and white-collar workers are treated differently in many areas of Belgian employment law, and that collective bargaining has a major influence in some industries. The differences and regulations can change on a regular basis, so it’s worth keeping an eye out for anything that might affect your business in the future.

Depending on the location of the employer’s operating site, these contracts must be drawn up in French, Dutch or German. Following the successful hire of an employee, the employer must then register that person with multiple government authorities, the insurance agency, a health provider, and with Dimona – an electronic system used to track social security. Failing to declare starters and leavers via Dimona can result in fines for employers.

The standard working week is 38 hours, generally across Mondays to Fridays, and any time worked above this is classed as overtime. The Belgian government has adopted the EU Working Time Directive, which limits individuals to a maximum working week of 48 hours. Collective bargaining can lead to variations in standard working hours, while it is possible for some shift workers to work as much as 12 hours per day.

Any overtime is paid at 150% of normal rate, or at 200% on Sundays and public holidays, plus an hour off in lieu for every hour of overtime worked. However, there are some exceptions to the overtime rules, such as for management, and for those working in the entertainment and hotel industries.

Notice periods vary substantially according to length of service, starting at a week for employees inside their first three months, and gradually adding more weeks at regular intervals until it reaches six weeks after two years of service and a maximum of 13 weeks after eight years’ service. For employees who started before 2014, even longer notice periods are applicable, potentially lasting for over a year. New legislation introduced in 2023 allows employees to take time off during notice periods for training, with the intended aim of helping them find new work quickly.

Compensation and Severance

As of May 1 2025, the legal minimum wage in Belgium stands at €2,111.89 gross per month (approximately £1,820; $2,450). This applies to all workers aged 18 or over. As collective bargaining is active in Belgium, it isn’t uncommon for significantly higher rates to be negotiated in certain industries.

Belgium is unusual among European countries in the payment of 13^th-month and 14^th-month bonuses. A bonus of one month’s salary is paid in December in time for Christmas, and a summer bonus of 92% of a month’s salary is paid in June.

Severance pay only applies in lieu of any notice period when employees are dismissed without any notice.

Tax and Withholding Considerations in Belgium

To maintain payroll compliance, employers are required to deduct withholding taxes from employee wages. They must pay withheld taxes to the tax authorities on a quarterly or monthly basis, file withholding tax returns and prepare an individual annual tax slip that is sent to both employees and tax authorities.

Filing a yearly tax return is the responsibility of the employee, whether they are a resident or non-resident. For residents, returns are generally due by 30 June if done on paper and by 15 July if done electronically. Non-residents are usually subject to a much later deadline, in September or October.

Income tax rates in Belgium are progressive and are applied across four different bands. The lowest, at 25%, is applied to the first €16,320 earned each year (approx. £14,100; $18,900). The highest band of 50% applies to all income above €49,840 per year (approx. £43,000; $57,700). These thresholds have risen incrementally in recent years, so keep a close eye on further developments. On top of this, there are also local taxes applied at community level, which can run to as much as 9%.

The social security contribution system in Belgium is relatively simple. Employers contribute 28% of salary for white-collar workers and 35% for blue-collar workers. Employee contributions are 13.07% of salary for all types of work. Companies should remit social security withholdings to the National Social Security Office quarterly.

Corporation tax in Belgium is currently 25%, although qualifying SMEs can benefit from a reduced rate of 20% on their first €100,000 of annual profit (approx. £86,200; $115,900). VAT is at 21%, although reduced rates of 12% and 6% apply to certain goods and services.

Holiday and Leave Considerations

Belgium observes ten public holidays every year, which employees are entitled to be paid for. Days off in lieu should be given for any public holidays that fall on Sundays, or days that the employee would not normally work.

Paid leave is generally 20 days per year, although this can be increased to 24 for employees that work six days per week. Normally, employees in Belgium are not allowed to carry over any unused leave into the following year. However, there are some exceptions for employees who have been off work due to illness, work-related injury, maternity or paternity leave, adoption or foster care, and were unable to use up their paid leave as a result. In these cases, unused days can be carried over for up to two years.

Paid sick leave entitlement is 100% of salary, paid by the employer, for the first 30 days of any illness that has been certified by a medical professional. After this, employees receive 60% of their normal salary, paid for by the state Health Insurance Fund.

Maternity leave entitlement is 15 paid weeks, which is generally six weeks prior to the due date and nine weeks after it; this can be increased by a further four weeks if it’s a multiple birth or if there are complications. The last week before the due date and the nine weeks post-birth are mandatory. The National Health Service pays about 82% of full pay (no ceiling) for the first month, then 75% of full pay (subject to ceiling) for the remainder of the leave.

Paternity leave entitlement is 20 days, although fathers also have the option of taking this entitlement as 40 half-days if they so wish. The first three full days (or six half-days are paid at full salary by the employer. The rest of the entitlement is covered by public health insurance (subject to ceiling) at 82% of normal salary.

All parents also have the right to request parental leave or flexible working patterns, the details of which should be agreed between employee and employer. All employers with a workforce of more than 20 should also give each employee five days off for training per year.

Belgium Payroll: A Summary

Belgium does have a fair amount of payroll specifics that distinguish it from most of the rest of Europe, and as this guide makes clear, collective bargaining can have a significant influence on things, too. For this reason, and to adapt to any changes to legislation in the future, having easy access to Belgium-specific expertise can be a real help in keeping your payroll operation compliant. Partnering with a good global payroll provider can connect you to this expertise, not only for Belgium, but for all the countries you operate in around the world.

This article is for informational purposes only and not intended to convey or constitute legal or any other advice. It is not a substitute for advice from a qualified professional. Click here to see more country payroll guides from CloudPay.