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Hiring in Belgium
In Belgium, collective bargaining agreements (CBAs) are common. CBAs are the result of negotiations between trade unions and employers. In addition, salaries in Belgium are indexed, meaning they are automatically increased each year based on the health index and linked to local cost of living increases.
When negotiating terms of an employment contract and offer letter with an employee in Belgium, it may be useful to keep the following standards in mind.
Employment contracts in Belgium
It is legally required to put a strong employment contract in place in Belgium which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Belgium should always state the salary and any compensation amounts in euros rather than another currency.
Working hours in Belgium
The standard workweek in Belgium can be no longer than 38 hours. After 38 hours, workers must be paid overtime. This generally does not apply if the employee is a senior executive or manager. Overtime is paid at 150% of the normal payment or 200% for overtime on Sundays or bank holidays.
Holidays in Belgium
Belgium celebrates 10 public holidays for which employees are given the day off, including:
- New Year’s Day
- Easter Monday
- Labor Day/May Day
- Ascension Day
- Whit Monday
- Belgian National Day
- Assumption of Mary
- All Saints’ Day
- Armistice Day
- Christmas Day
If any of the public holidays fall on a weekend, the day becomes a floating holiday, which the employee is entitled to use like any vacation day.
Vacation days in Belgium
Annual vacation leave in Belgium is provided all at once at the start of the year, based on the number of months worked in the previous year. Therefore, if an employee joins a company on January 1, the employee will need to work for a full year before receiving any vacation days.
As of 2012, the EU challenged this rule resulting in Belgium introducing “Subsidiary Holiday” rules. This allows a new employee to take holidays within their first year, and these days will be an advance on the double holiday allowance for the following year. Annual leave does not carry over to the next year if not used.
Office employees are entitled to a holiday (vacation) bonus of 1/12 of 92% of the gross salary for the month in which the holiday starts, multiplied by the number of months worked in the holiday credit year (previous calendar year).
Belgium sick leave
Employees are entitled to sick leave and there is no maximum number days; however, each incidence must be accompanied by a doctor’s note.
Maternity/paternity leave in Belgium
Expecting employees are entitled to maternity leave and an allowance during that period. There are 2 periods of maternity leave:
- Prenatal rest period, which may start 6 weeks before the presumed date of birth (at least 1 week must be taken before the due date)
- Postnatal rest period, which is a minimum of 9 weeks or more if the prenatal rest lasted less than 6 weeks.
A maternity fee is mandatory for the birth of every child and the amount of the maternity fee depends on the child’s rank in the family. The highest amount is for the firstborn child.
Fathers have the right to paternity leave of 20 days. These days can be taken separately, consecutively, or split into 30 half-days, but must be used within 4 months of the birth.
Health insurance in Belgium
Health insurance is provided through the national system. Employees are legally required to register with a health insurance fund in order to be entitled to health insurance.
Belgium supplementary benefits
Some employers also offer a variable profit sharing or performance-related bonus whereby the company pays an annual sum (usually at the end of the year). The amount of the bonus depends on the company’s overall performance and may be calculated as a percentage of each employee’s annual or monthly salary over the period.
Some companies provide benefits such as private school fees or car allowances. These additional benefits are usually taxable and should be considered when calculating an employee’s net take-home pay.
Generally, we recommend budgeting 35% as benefits cost on top of the gross salary to allocate the total employer’s cost including benefits in Belgium.
Bonuses
Most employers pay a 13th-month bonus to employees and a few even add a half of a 14th-month’s pay to that, typically payable at the end of the year.
In the first and last year of employment, the 13th-month bonus is paid pro-rata, assuming the employee doesn’t work a full calendar year.
Termination and severance in Belgium
On January 1, 2014, probationary periods were abolished, except for temporary and student contracts.
Under the new dismissal rules, effective January 1, 2014, notice periods are measured in weeks, based on years of service:
- For the first 3 months of service, the minimum notice period is 1 week for resignation and 2 weeks for dismissal.
- By the 5th year of employment, the notice period is 7 weeks and 15 weeks, respectively.
- By the 9th year of service, the maximum notice period in case of resignation is 13 weeks and there is no maximum notice for dismissal.
- After 5 years, the notice period increases by three weeks per year of service until it reaches 63 weeks.
- In case of a termination, these notice periods are often paid out.
- In case of dismissal by the employer, an employee who has found another job may terminate the employment contract with a shorter notice period (referred to as the “counter-notice”).
- Furthermore, employers must offer outplacement services to all dismissed employees with a notice period of 30 weeks or more.
Paying taxes in Belgium
- Employees pay progressive income tax in Belgium. As of 2024, the top rate is 50% and starts at a salary level of EUR 46,440.
- Employers and employees must pay contributions to the Belgian social security system. The amount of the contributions is 13.07% for employees, approximately 27% for employers, both uncapped.
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