Hiring Talent And Managing Payroll In Belgium

Agreements

• Depending on the employee's place of employment or the registered office of the business firm, the employment contract must be in either Dutch, French, or German.
• All parties must be aware of the conditions, liabilities, and obligations before signing any contract in Belgium for it to be legally binding.
• Agreements and contracts can be in Dutch, French, and German languages.
• An agreement in Belgium must generally include the following details:

  • Type of contract
  • Identity proof of the parties
  • Description of the objectives of each party
  • Nature of the obligations and the circumstances under which they may be suspended
  • Payment and taxes (if applicable)
  • Duration and termination
  • Liability, force majeure

Onboarding Process

• The employee onboarding process typically involves the following steps:

  • An offer letter and employment contract
  • Verification and documentation
  • Orientation and training
  • Introduction to team and stakeholderso Introduction to team and stakeholders
  • Provision of tools and resources
  • Performance management and feedback
  • Ongoing support

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Expats working in Belgium who are appropriately registered will have access to the country's excellent healthcare system.
• Official reimbursement rates for medical and hospital care are established via a contract between doctors, hospitals, clinics, and the government's health authority.

Working Hours and Overtime

• Work hours: Standard working hours in Belgium are 38 hours per week.
• Break:• Break: The employee must be given a break if the work is over six hours. A collective agreement reached at a sectoral or corporate level specifies the length and terms of break grants. If there is no collective bargaining agreement, the employee must be given a quarter-hour break no later than when the work exceeds six hours.
• Overtime: Any hours worked more than the required 38 per week are considered overtime. They must be compensated at 150% of the standard rate. On weekends and public holidays, overtime is compensated at a rate that is 200% of their standard hourly rates.

Social Security

• Employees must contribute 13.07% of their gross pay towards social security taxes.
• Depending on when the employee was hired, the employer's expense ranges from 25 to 27%.

Taxes for Employees

Termination

Severance Pay

• Severance pay is determined by the duration of the notice period that should have been observed in the event of dismissal without a notice period.
• For instance, it should be the equivalent of three months' salary if the notice period is three months.

Employees or Contractors

• Full-time workers are preferred over independent contractors in Belgium. Such employees are completely favored by Belgian employment legislation, and the expense of firing a full-time employee is high.
• Depending on the employee's degree of seniority and length of service to the company, the severance package may involve paying wages for several months when an employee is let go.
• Typically, skilled and experienced workers are temporarily replaced by contracted workers. Contractors give the business flexibility in personnel and make payroll processing easier.
• Many people are converting to contract-based work to lower their tax burden due to the high tax rates levied on full-time employees. However, misclassifying an employee as a contractor or vice-versa may attract a hefty penalty.
• There are more chances for contractors in Belgium, thanks to the rigorous employment rules.

Final Words