Belgium is a central hub in Europe, known for its strategic location, multilingual workforce, and strong labor protections. With headquarters for the European Union and numerous international companies based in Brussels, it’s a popular choice for businesses expanding into Europe. 

However, Belgian labor laws are complex, and employers must carefully understand statutory benefits, tax obligations, and employee rights to avoid penalties and ensure a smooth hiring process.

This guide walks you through everything you need to know about hiring in Belgium—from choosing the right employment model to understanding benefits, paid leave, and termination rules. Whether you’re testing the Belgian market or building a long-term team, this resource will help you stay compliant and competitive.

How to Hire Employees in Belgium

Before you begin hiring in Belgium, it’s essential to determine the right employment model for your business. The approach you choose will determine your legal responsibilities, speed to hire, and overall complexity. Companies can engage workers in Belgium through one of the following three methods:

Setting Up a Local Entity

Setting up a subsidiary or branch in Belgium allows for full control over your operations and enables direct employment of local staff. This model is best suited to companies with long-term expansion plans and a commitment to building a local presence.

However, establishing an entity in Belgium is time-consuming and comes with substantial administrative and financial responsibilities. You’ll need to register with local authorities, open a local bank account, enroll in Belgium’s social security system, and comply with all applicable employment regulations. It also requires appointing a local representative and may involve complex tax structuring.

Working with an Employer of Record (EOR)

An Employer of Record (EOR) is a third-party service provider that acts as the legal employer on your behalf. While the EOR handles employment contracts, payroll, benefits administration, and tax compliance, you maintain control over the employee’s day-to-day responsibilities and performance management.

This model allows for fast, compliant hiring without the need to register a local entity. It’s especially useful for companies looking to enter the Belgian market quickly, test it without long-term investment, or build a remote or distributed team without the burden of local HR infrastructure.

Hiring Independent Contractors

Engaging independent contractors is a flexible option for short-term projects, consulting roles, or highly specialized tasks. Contractors manage their own taxes and social security contributions, and employers do not have to provide benefits or withhold taxes.

However, Belgian authorities closely monitor the use of contractors. Suppose a contractor is working under conditions that mirror those of a full-time employee, such as fixed hours, long-term engagements, or direct supervision. In that case, they may be reclassified as an employee. Misclassification can result in fines, back payments for taxes and social security, and mandatory employee benefits.

That said, hiring contractors isn’t off-limits. With the right contracts and working arrangements in place, it can be a compliant and cost-effective solution. At RemotePeople, we offer guidance and documentation to help you hire contractors legally in Belgium.

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Start hiring with an Belgium EOR

Let us handle the complexities of hiring, compliance, and payroll in Belgium while you focus on growing your team.

  • Hire employees in Belgium with a Belgium EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Belgium
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Using an Employer of Record in Belgium

We’ve touched on how an EOR can streamline hiring, but let’s take a deeper look at what they actually handle for you.

Working with an EOR simplifies the process of entering the Belgian market while minimizing compliance risks. The EOR becomes the legal employer, responsible for all administrative and legal employment duties, while you retain full control over how your team works.

An EOR in Belgium typically manages:

  • Employment Contracts: The Employer Of Record in Belgium drafts and signs employment contracts that fully comply with Belgian labor laws and, where applicable, sector-specific collective bargaining agreements (CBAs). Contracts include details such as salary, working hours, holiday entitlements, notice periods, and termination terms.
  • Payroll and Salary Payments: Belgian payroll is complex and must follow strict regulations. The EOR runs payroll locally, ensures employees are paid accurately and on time in euros, and issues pay slips in compliance with Belgian law. They also manage statutory bonuses such as holiday pay and 13th-month payments if required.
  • Tax and Social Security Compliance: The EOR calculates and withholds personal income tax, social security contributions, and other required deductions. They handle employer contributions to Belgium’s social security system and ensure timely reporting and remittance to local authorities.
  • Benefits Administration: Statutory benefits like holiday pay, public holidays, health insurance, and pension contributions are managed by the EOR. They can also help design and administer competitive benefits packages, including supplementary pensions, private insurance, and meal vouchers.
  • Onboarding and Documentation: From registration with social security to work permit applications, the EOR handles all onboarding requirements, ensuring each employee is legally registered and compliant from day one.
  • Offboarding and Terminations: The EOR oversees formal termination processes, calculates notice periods and severance pay, and ensures all documentation complies with Belgian labor law.

In short, an EOR allows you to focus on growing your team and business, while they manage the complexities of local employment.

Employment and Labor Laws in Belgium

Employment Contracts

Contracts in Belgium can be permanent or fixed-term. They may also be written or verbal and can be prepared in any of Belgium’s official languages (French, Dutch, or German) or any other language acceptable to both employee and employer.

Working Hours

Belgian workers typically work eight hours a day, five days a week, for a normal 40-hour work week.

Overtime

Belgian employees can work up to 11 hours a day or 50 hours in a week only. Employer-required overtime is limited to 78 hours in three months and a maximum of 91 hours in one year. However, new legislation allows for additional “voluntary” overtime that can total 100 hours in a year.

Overtime work is paid at a rate of 150% of normal wages except when performed on rest days and public holidays, when it is paid at 200% of normal wages.

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Payroll and Employment Taxes in Belgium

Fiscal Year

In Belgium, the fiscal year follows the calendar year, running from January 1 to December 31. Annual tax returns in Belgium must be submitted to the Federal Public Service (FPS) Finance in accordance with the official filing schedule.

Payroll Cycle

Most employees are paid on a monthly payroll cycle, typically receiving their salary at the end of each month. In many sectors, it’s also customary to provide a 13th-month bonus, and in some cases, a 14th-month bonus, depending on collective labor agreements.

Minimum Wage

As of January 1, 2025, the gross national minimum monthly wage in Belgium is €2,070.48 for full-time employees working a standard 38-hour week. This rate is set by the National Labour Council and is subject to periodic indexation to reflect changes in the cost of living.

It’s important to note that while this is the national baseline, actual minimum wages can vary across different sectors and regions due to collective labor agreements. For instance, certain industries may have higher minimum wage standards based on the nature of the work and negotiated agreements.

Additionally, the Guaranteed Average Minimum Monthly Income (GAMMI), which is a benchmark for various employment contracts, is set at €2,111.89 per month as of 2025.

Employer Tax Contributions

Employers are required to contribute approximately 27% of an employee’s gross salary to the national social security system. This contribution supports a wide range of social programs, ensuring employee protection and access to essential services.

These contributions are mandatory and apply to all salaried workers. The exact percentage may vary slightly depending on the sector or any applicable reductions (e.g., for first hires or low-wage earners).

Tax TypeEmployer RateNotes
Pension (Retirement)8.86%Funds the statutory pension system
Sickness and Disability3.80%Covers short- and long-term illness and disability leave
Unemployment Insurance1.46%Supports payments for unemployed workers
Health Insurance3.80%Funds public healthcare access for employees
Family Allowances7.00%Supports child and family-related benefits
Workplace Accident InsuranceVariesAdditional insurance required by law; rate depends on the sector and risk level
Miscellaneous (e.g. closing funds, subsistence)±2.00%Covers smaller programs like holiday pay and social funds

Employee Payroll Contributions

Employees in Belgium contribute 13.07% of their gross salary to the social security system. This amount is automatically deducted from their wages each pay cycle. Like the employer contributions, these deductions help fund major social programs such as healthcare, pensions, unemployment, and disability benefits.

Tax TypeEmployee RateNotes
Pension (Retirement)7.50%Employee’s contribution toward the statutory pension
Sickness and Disability1.15%Covers employee health leave and long-term care
Unemployment Insurance0.87%Ensures benefit eligibility in case of job loss
Health Insurance3.55%Grants access to Belgium’s healthcare system
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Individual Income Tax Contributions

Belgians pay from 25% up to 50% income tax, depending on their salary levels. Employers are required by law to withhold these tax payments and provide employees with tax summaries at the end of each year.

Taxable Income (EUR)Rate (%)Tax on Bracket (EUR)Cumulative Tax (EUR)
Up to 16,32025%4,0804,080
16,320 – 28,80040%4,9929,072
28,800 – 49,84045%9,46818,540
More than 49,84050%——
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Time Off and Leave in Belgium

Mandatory Leave Entitlements

Employees working full-time in Belgium are entitled to a minimum of 20 days of paid annual leave per year. The exact entitlement can be higher, depending on the sector and collective agreements. Paid vacation is typically earned based on the previous year’s employment.

For example, the number of days available in 2025 is based on the work performed in 2024. This “accrual” model can be confusing, especially for new hires. Some employers offer additional leave or “supplementary holidays” as part of the benefits package.

Public Holidays

Belgium observes 10 official public holidays, including:

  • New Year’s Day (1 January)
  • Easter Monday (date varies)
  • Labour Day (1 May)
  • Ascension Day (date varies)
  • Whit Monday (date varies)
  • Belgian National Day (21 July)
  • Assumption Day (15 August)
  • All Saints’ Day (1 November)
  • Armistice Day (11 November)
  • Christmas Day (25 December)

Employees are entitled to these holidays off with pay. If an employee works on a public holiday, they must be compensated with either additional pay or time off in lieu.

Sick Leave

Employees are entitled to 30 days of employer-paid sick leave if they are absent due to illness. After this period, the National Institute for Sickness and Invalidity Insurance (INAMI/RIZIV) takes over and pays a daily allowance to the employee.

Sick leave requires a medical certificate, and employers must report absences promptly. For longer-term illnesses, employ.

Maternity Leave

Female employees are entitled to 15 weeks of paid maternity leave, which can be extended in certain circumstances (e.g., multiple births, premature delivery, or hospitalization of the newborn). At least one week must be taken before the expected due date, and nine weeks after childbirth are mandatory. The remaining five weeks can be distributed flexibly before or after the birth, depending on the mother’s preference and medical advice.

Maternity benefits are funded through Belgium’s social security system. Employees typically receive 82% of their salary during the first 30 days, followed by 75% of their gross pay for the remaining weeks, subject to monthly caps. Employers are responsible for submitting the necessary documentation to the mutualité (health insurance fund) to initiate payment.

Paternity Leave

Fathers and co-parents are entitled to 20 days of paternity leave, which can be taken consecutively or spread over the first four months following the birth. These days are paid at 82% of the employee’s gross salary, and must be coordinated in advance with the employer. Paternity leave has gradually expanded in Belgium to reflect evolving family structures and to encourage equal parenting responsibilities.

Parental Leave

Both parents have the right to take parental leave until the child turns 12 (or 21 in the case of a child with a disability). The leave can be taken full-time, part-time, or in a more flexible arrangement (e.g. one day off per week). While unpaid by the employer, a modest allowance is provided by the state through the ONEM/RVA (National Employment Office).

Eligibility requires a minimum employment history and proper notice to the employer. This flexibility helps parents adjust their work schedules to accommodate childcare needs over an extended period.

Other Leave Types

  • Marriage Leave: Employees are entitled to 3 paid days off for their own marriage or registered partnership.
  • Bereavement Leave: Ranges from 3 to 10 days depending on the relationship to the deceased (e.g., spouse, parent, sibling, or in-laws). Some collective agreements offer extended bereavement leave in specific cases.
  • Adoption and Foster Leave: Adoptive parents are eligible for up to 6 weeks of paid leave, funded similarly to maternity/paternity leave, with extensions available for multiple children or special needs cases.
  • Time Credit and Career Breaks: Belgium’s unique “time credit” system allows employees to take extended leave (full or part-time) for personal development, family care, or health reasons. While typically unpaid, these breaks can come with partial  income support from the government depending on the situation.

All leave types must be supported by documentation (e.g. birth certificate, adoption papers, medical records), and employees must provide adequate notice to their employers where applicable. In many cases, the employer cannot refuse the request but may negotiate the timing.

Terminations and Severance in Belgium

Belgium’s termination laws are detailed and protective of employee rights. Employers must adhere to specific legal procedures depending on the reason for termination, the employee’s seniority, and the type of contract. Mistakes can lead to claims of unfair dismissal and financial penalties, so careful planning and documentation are key.

Termination Rules

Employment contracts in Belgium can end in several ways:

  • Mutual agreement between the employer and employee
  • Employee resignation with appropriate notice
  • Dismissal by the employer, for cause or due to business-related reasons
  • End of a fixed-term contract, automatically or with early termination under agreed conditions

When terminating a contract, employers must provide written notice and, in many cases, a justified explanation for the dismissal. Failure to follow the proper process could lead to a claim of “unjustified dismissal”, requiring the employer to pay compensation equivalent to up to 17 weeks of salary or more.

Acceptable Grounds for Dismissal

Common legitimate reasons for termination include:

  • Economic redundancy or business restructuring
  • Underperformance or lack of capability, following documented coaching or warnings
  • Serious misconduct (e.g., theft, fraud, harassment), which may allow immediate dismissal without notice or severance
  • Incompatibility with the team or culture, if well documented

Employers are expected to explore alternatives before proceeding with redundancy, such as role reassignment or reduced hours. For collective dismissals, additional procedures and notifications to government bodies and labor unions are required.

Notice Periods

Notice periods vary depending on the length of service and are set by national law:

Length of ServiceSeverance Pay
Less than 3 months1 week
3 to 6 months3 weeks
6 to 12 months5 weeks
1 to 5 yearsRanges from 6 to 15 weeks
Over 5 yearsIncreases progressively, up to 62+ weeks

Notice must be provided in writing, stating the effective date. Alternatively, employers may opt for payment in lieu of notice, known as indemnité de préavis, which compensates the employee for the full duration of the notice period.

Severance Pay

Employees dismissed without serious cause are typically entitled to severance, calculated based on:

  • Monthly gross salary
  • Seniority and duration of employment
  • Applicable collective bargaining agreements

No severance is owed in cases of serious misconduct, but this must be well substantiated and legally defensible. Failure to prove “just cause” can lead to court-ordered compensation or reinstatement.

An Employer of Record (EOR) ensures that all offboarding processes in Belgium are handled compliantly and efficiently. From calculating the correct notice period to preparing the dismissal letter and managing severance payouts, the EOR helps reduce legal exposure while supporting both employer and employee through the transition.

Expand into Belgium Easily with Remote People’s Employer of Record in Belgium

Belgium’s highly skilled workforce, strong infrastructure, and central European location make it a strategic market for international hiring. However, employment law in Belgium is detailed and regulated, with specific rules around contracts, benefits, payroll, and terminations.

An Employer of Record provides a straightforward, compliant way to hire employees in Belgium without needing to open a local entity. It simplifies everything from onboarding and payroll to leave management and employee offboarding, while ensuring you meet all local legal obligations.

If you’re ready to hire in Belgium, RemotePeople can help. Our Employer of Record services allow you to build a team quickly, compliantly, and without the administrative burden. Get in touch to learn how we can support your expansion into Belgium and beyond.