Choosing to offer the best Belgium compensation and benefits will help your company stand out from others in your industry, attract the best candidates, and stay compliant. However, it’s easy to overlook benefits and compensation when you’re also running two company locations, learning complex tax laws, and hiring a brand new team.
G-P understands the complexities of an internal expansion, which is why we offer Belgium compensation and benefits outsourcing. We can use our Belgium subsidiary to help you start working without your own entity in place. Your employees will receive our Belgium benefit management plan, and you won’t have to worry about the country’s compensation laws.
Belgium Compensation Laws
Belgium’s legal minimum wage varies by region and level. The country also has many collective bargaining agreements (CBAs) and trade unions that could change the minimum wage for certain industries or sectors. Employees who work overtime during the day generally receive 50% above their normal rate and double their normal rate on Sundays and public holidays according to Belgium compensation laws.
Guaranteed Benefits in Belgium
Companies must give out all guaranteed benefits required by law to stay compliant, which includes 10 days off for the country’s public holidays and annual vacation leave at the start of each year based on how many months your employee worked the previous year. Office employees should also receive a vacation bonus that’s 1/12 of 92% of their gross salary for the month the holiday starts, multiplied by the number of months they worked in the previous calendar year. Manual workers also get a bonus from the holiday fund the employer is affiliated with, and it should be equal to 8-108% of their gross pay in the previous year.
Pregnant women are entitled to a generous maternity leave that includes two periods — a prenatal and a postnatal rest period. Prenatal rest periods can start six weeks before the expected date of birth, and the postnatal rest period is a minimum of nine weeks after the birth. Male employees should receive 15 days (20 days as of January 2023) of paternity leave, which they must take within four months after the birth.
Belgium Benefits Management
Belgium is known for its generous benefits, and your Belgium benefit management plan should include supplemental benefits that employees may expect. Many employers choose to give out a 13th-month bonus at the end of the year, for example, and some also add half of a 14th-month bonus.
We recommend budgeting an additional 35% for benefits on top of an employee’s gross salary. Doing so will give you room to provide variable profit sharing or performance-related bonuses, private school fees, car allowances, and even stock options.
Restrictions for Benefits and Compensation
You must establish a legal subsidiary in Belgium before you can give out compensation and benefits. Depending on your structure and where you choose to incorporate within the country, you could spend several months setting up your subsidiary before being able to pay employees. G-P will eliminate this restriction as the Employer of Record. Our Belgium compensation and benefit outsourcing services will take the stress out of compliance and ensure that you can start working fast.
Choose G-P Today
Our team of experts is here to make your expansion easier. Contact us today to learn more about Belgium benefit and compensation outsourcing.