Setting up your Belgium payroll will be an important part of your new company location. Ensuring that your payroll meets local labor laws will keep you working without the fear of delays or fines, which means employees will get paid on time. However, setting up your Belgium payroll can turn into a challenge while you’re also juggling hiring, determining benefits, and running your parent company.
G-P can take the stress out of expansion. As the Employer of Record, you can leverage our existing subsidiary to streamline payroll, hire talented employees, and source the best benefits.
Taxation rules in Belgium
Belgium has several different tax funds that apply to both employers and employees. For example, employees must contribute 13.07% of their gross income to social security, while employers contribute about 27%. The country’s progressive income tax scale is also high, with employees paying 50% of their salary over EUR 46,440.
Belgium payroll options for companies
Instead of simply running your own payroll, keep in mind that you have 3 different Belgium payroll options to choose from:
- Internal: Some companies with a large HR team and a commitment to Belgium may choose to set up an internal payroll. However, you must first incorporate in the country and have an established subsidiary.
- Payroll processing company: Working with a local Belgium payroll processing company is another option for companies looking to outsource. Although with this option, you’ll still be held responsible for compliance.
- G-P: The easiest way to run payroll in Belgium and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
How to set up a payroll in Belgium
You cannot set up your payroll without establishing a subsidiary first. However, the incorporation process can take months and requires the knowledge of a lawyer, consultant, or other professionals. By the time you can set up your Belgium payroll, you may have lost talented candidates.
G-P eliminates this requirement. Since we use our existing subsidiary, you won’t have to go through the lengthy process and can begin hiring in minutes, not months.
Entitlement/termination terms
Entitlement and termination terms are often tricky in other countries, so it helps to have these terms in place before setting up your Belgium payroll. In 2014, Belgium changed its measure of notice periods to weeks based on an employee’s years of service. Employers also need to offer all dismissed employees outplacement services.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.