Employment Law

Belgian Employment Contract

Belgian employers are required by law to provide all employees with a formal employment contract. All relevant details of the agreement should be included, such as maternity leave entitlements, sick leave and wages. All references to compensation shall be in local Euro currency.

Working with our Belgian PEO and employer of record, Remoly's team of local experts can provide assistance in drafting strong employment contracts that comply with local regulations.

Fixed Term

Indefinite

Working Hours in Belgium

Belgian workers can work up to 38 hours, after which employers are required to pay overtime. Normal overtime is 1.5 times the normal wage, and overtime on Sundays or public holidays is 2 times the normal wage.

Holiday Policy

Belgium Vacation

In Belgium, employees are entitled to 20 days of paid leave if they work five days a week. Some employers may choose to offer more days as part of their benefits package. If the holiday is not used, it does not carry over to the next year.

Belgian Sick Leave

Employees in Belgium are entitled to unlimited sick leave as long as they present a valid medical certificate. They will be compensated for the time off, but the pay will vary based on the length of the absence. For example, they get 100% of their salary for the first 7 days, then 85.88% of their salary on days 8 to 14, and so on. Workers who are absent from work for more than a year may qualify for government-sponsored disability benefits.

Parental Leave in Belgium

Female employees in Belgium can take six weeks of maternity leave before giving birth and at least nine weeks after. They are entitled to compensation during maternity leave, but the amount decreases as the number of children increases.

Male employees are entitled to ten days of paternity leave, which can be taken within four months of the birth of the child. The first three days are paid in full and the next seven days are paid at a discounted rate.

Termination and Severance in Belgium

For companies expanding overseas for the first time, dealing with employee layoffs and dealing with severance packages can be complicated. Remoly's Belgian PEO can reduce risk for foreign companies and provide guidance during the process.

For termination, the amount of notice that must be provided to the employee varies depending on the length of the employment period. In most cases, no probationary period is allowed, and in cases of employment for less than three months, the minimum notice period is two weeks (one week in the case of resignation). This number gradually increases, reaching a maximum of 62 weeks after 21 years of employment. On top of this, employment increases by one week per year.

Notice periods can and often are given in the form of additional pay, so it may be wise to set aside a fund for this purpose.

Taxes in Belgium

Belgium imposes progressive taxation on income, with tax rates ranging from 25% to 50%, depending on income.

In addition, both employers and employees are required to contribute a certain proportion of their total income to the social security fund, with the employer totaling 35% and the employee 13.07%.

Health Insurance in Belgium

Belgium has a state-run healthcare system with high standards of care, so employers are not required to provide private health insurance.

Salary and Benefits

Belgian Compensation Law

The legal minimum wage in Belgium is €1,593.81 per month (as of 2020).

Benefits Administration in Belgium

While Belgians do receive relatively generous state benefits, many employers still choose to provide company cars, holiday bonuses and the like. Setting up a benefits system for employees in Belgium is an important part of becoming an employer and expanding into the country. However, this can be difficult if you're not familiar with the country's complex labor laws, language, and administrative procedures.

Remoly can help you bypass this element of your Belgian expansion by providing benefits system outsourcing, saving you time and money. Our experts will advise you on the best course of action and take care of your benefits set-up and management, helping you focus on the rest of your expansion.

Workers are also entitled to a 24-hour rest period at least once a week. Workers can also choose to work 39 or 40 hours per week in exchange for 6 or 12 additional annual days off, respectively.