Capital
Brussels
Currency
Euro
Languages
English, Dutch, French, German
Payroll Frequency
N/A
GDP per Capita
1.74% (2019)
Employer Tax
N/A

Employer Of Record in Belgium

Marzuna’s Belgium Employer of Record (EOR) solution offers a seamless pathway for your business expansion into Belgium, eliminating the requirement to establish a formal business entity in the country. Leveraging our cutting-edge HR service platform, we provide comprehensive, automated management for your remote team, handling all aspects from start to finish.

Our extensive global network is at your disposal, ensuring a smooth and efficient expansion process into the Belgian market. Discover more about Marzuna’s tailor-made, cost-effective solutions designed to meet your unique business needs.

Overview of Belgium

  • Population: 1.15 Crores (2019)
  • Currency: Euro
  • Capital City: Brussels
  • Languages: English, Dutch, French, German
  • GDP growth: 1.74% (2019)

Employment Landscape in Belgium

Before embarking on the journey of establishing and expanding your local entity in Belgium, it is imperative to have a solid grasp of the country’s employment laws, whether you plan to hire a local citizen or a foreign national. Additionally, you must make a strategic decision regarding whether you need an internal team or wish to hire team members for your expansion project. Regardless of your choice, collaborating with a local entity can significantly reduce the time and effort required to navigate the intricate landscape of employment regulations in Belgium.

Discover how Marzuna, serving as your trusted Employer of Record in Belgium, can simplify and streamline the employment process, providing you with the expertise and support you need to ensure a successful expansion venture.

Entitlements Explanations
Statutory Working Hours 38 hours per week
Overtime Eligibility A maximum of 78 hours of overtime are permitted every three months.

  • Up to 100 hours of voluntary overtime may be worked by employees each year, subject to certain restrictions.
  • A collective bargaining agreement permits an employee to put in 350 hours of unpaid overtime annually.
  • Arrangements that are established willingly over time should be documented in writing.
  • A specific portion of the base wage is given to an employee who works overtime.
  • An employee who works extra on a Sunday or a holiday is compensated with a larger proportion of their base pay.
Paid Public Holidays Employees in Belgium are eligible for paid public holidays. The holidays are:

  • New Year’s Day (1 January)
  • Easter Monday (5 April 2021)
  • Labour Day (1 May 2021)
  • Ascension Day (13 May 2021)
  • Whit Monday (24 May 2021)
  • Belgian National Day (21 July 2021)
  • Assumption of Mary (15 August 2021)
  • All Saints’ Day (1 November 2021)
  • Armistice Day (11 November 2021)
  • Christmas Day (25 December 2021)
Holiday Pay In Belgium, employees receive holiday compensation based on the length of the holidays they were compensated for.

A full-time worker who completes the whole calendar year under a full-time contract is entitled to four weeks of paid vacation the following year.

Medical Leave In Belgium, an employee has a right to a 30-day paid sick leave. Employees must produce a medical certificate and notify the company right away about their illness. To confirm the employee’s inability to work, the company may also appoint a medical officer.

White-collar workers are given their regular base pay for the first 30 days of their illness, after which they are eligible for sickness benefits through Belgium’s subsidised health insurance system, and if their illness lasts longer than a year, they are also eligible for government invalidity benefits.An employee has the right to take time off work for sick family members.

Maternity leave An employee who has worked for 120 days or more during the six months prior to the beginning of the maternity period is qualified for maternity leave under Belgian labor legislation.

  • A female employee is entitled to six weeks of maternity leave before the due date.
  • A woman is permitted to take nine weeks of maternity leave following childbirth.
  • Upon returning to work, the female employee may take nursing breaks up to the age of nine months.
  • A man who works for an employer is also entitled to paternity leave, which he can use four months after the birth of the kid.
  • Adoptive parents are entitled to six weeks of leave, which must be used within two months after the adoption.
Annual Leave Accrual Entitlement The employees in Belgium get an annual paid leave of:

Duration of service Leaves
One year, working five days a week 20 days
More than a year, working six days a week 24 days

Employees aged less than 25 years and who have worked at least for a month after the year following graduation are eligible for youth leave which can last up to 4 weeks.

Employees having age more than 50 years and who have resumed work after unemployment are eligible for senior citizen’s leave.

 

Contractors vs Full-Time Employees

Belgium holds a distinct preference for full-time employees over contractors, with its employment laws strongly favoring the former. The process of parting ways with a full-time employee can be financially substantial for businesses.

When an employee needs to be let go, the severance package typically encompasses several months’ worth of salary, contingent on their seniority level and years of service with the company. In contrast, contracted employees are often brought in as temporary replacements for experienced and skilled workers, offering companies a degree of flexibility in staffing and simplifying the payroll process.

The considerable tax rates imposed on full-time employees have prompted many to explore contract-based work as a means to mitigate their tax burden. This shift, driven by the rigidity of Belgium’s employment laws, has opened up more opportunities for contractors in the country.

For insights into tailored business solutions that cater to your specific needs in this dynamic employment landscape, don’t hesitate to engage with Marzuna’s experts. They can guide you through the intricacies of the Belgian labor market and help you make informed decisions for your expansion.

Recruiting in Belgium

Expanding your team in Belgium doesn’t always necessitate establishing a local entity. When hiring employees in Belgium, the primary focus is on evaluating the applicant’s professional skills and qualifications relevant to the job position.

Common background checks, such as assessments of educational background, criminal records, health checks, prior work experience, and eligibility to work in Belgium, are standard procedures before confirming an employment offer. It is important to note that employers are legally restricted from asking questions unrelated to the job’s nature and working conditions. Applicants have the right to decline answering any questions that violate these legal constraints and are not pertinent to the job.

Furthermore, once an employer decides to hire an applicant, they are responsible for ensuring that the employee possesses a single permit, allowing them to legally work in Belgium.

For a seamless and compliant hiring experience in Belgium, consider engaging with Marzuna, a trusted expert in the field. We can guide you through the hiring process while ensuring legal compliance and a smooth transition into the Belgian workforce.

Probation & Termination

Probation Periods and Termination in Belgium

In Belgium, probation periods are not the norm, with exceptions made primarily for students and temporary workers. The existence and duration of a probationary period for students and temporary residents is typically determined through mutual agreement and can vary from no probation period to a few days.

For workers in different categories, the probation period regulations are as follows:

  • Blue-collar workers: A probation period of 2 weeks.
  • White-collar workers: A probation period ranging from 1 to 6 months.

Termination of Employment in Belgium

Terminating an employment contract in Belgium can occur in several ways. The fixed-term contract may conclude by mutual agreement as it reaches its predetermined end date.

In cases of misconduct, an employer may terminate a fixed-term contract even before its scheduled end, and conversely, an employee can resign if the employer’s behavior is inappropriate. It’s worth noting that the notice period for termination may vary for each employee based on their specific circumstances and the nature of the employment relationship.

Type of the employment Notice period
Manual worker <20 years – 4 weeks

> 20 years – 8 weeks

White-collar worker salary< 25,277 euro -3 months

salary>25,277 euros – as per the agreement

EOR solution in Belgium

As your headquarters team concentrates on expanding your business, the Employer of Record (EOR) assumes the crucial role of hiring and onboarding new employees in strict compliance with Belgium’s employment regulations. The EOR effectively becomes the new employer for the workforce you bring on board, taking on responsibilities spanning local regulations, tax compliance, payroll management, adherence to labor laws, and HR functions.

With the guidance of an EOR, you can initiate the hiring process without the need to establish a formal entity in the country, offering a more efficient and agile path to workforce expansion. Marzuna’s EOR services extend comprehensive support, delivering local insights and expertise specific to Belgium. Our seasoned experts handle critical tasks, including tax obligations and registration with the social security office on behalf of your company.

Embracing Outsourcing Through an Employer of Record

Many businesses opt for outsourcing solutions such as EOR and PEO to facilitate the recruitment of employees in a new country. The choice between building an in-house team or engaging a local entity well-versed in the country’s legal landscape depends on your company’s strategy and objectives. Marzuna’s EOR solution is designed to meet these specific needs, overseeing the entire process of hiring, payroll management, and compliance, streamlining your expansion efforts with ease.

Types of Visas in Belgium

Visa Category Explanation
Short-term visa A short-stay Schengen visa allows you to stay in the Schengen area but is allowed to work for 90 days. Following are the types of Short-term visas:

Visa Category Explanation
Airport Transit Visa An airport transit visa is required in order to enter an international transit zone while awaiting a connecting aircraft.

You are not in need of a transit visa if you are a family member of an EU or EFTA citizen.

Apply for the airport transit visa at the Belgian embassy in your nation of residence at least 15 days before your departure.

Tourist visa Visitors who intend to spend no more than 90 days in Belgium over the course of six months are eligible for a tourist visa.

At least 15 days before to your journey, apply for a tourist visa at the closest embassy or consulate in your country of origin.

Visitor visa You require a visitor’s visa if you are traveling to Belgium to see relatives or friends.

At least 15 days before to your journey, apply for a visitor’s visa at the closest embassy or consulate in your place of origin.

A letter of invitation and documentation of your link to the family can be required.

Business visa A business visa is necessary for brief business travel to Belgium. The business visa has a ninety-day validity period.

The company in Belgium must send you a letter inviting you to attend and outlining the reason for your visit and employee trip.centralized store

At least 15 days before to your journey, apply for a visitor’s visa at the closest embassy or consulate in your place of origin.

Short-term Study visa For study travels that last shorter than three months or for educational purposes, this visa may be granted.

The application procedure is comparable to that of obtaining a travel visa. There should be a statement of permission from the parents and the school.

Medical Visa If a visitor intends to stay for less than three months and obtain medical treatment, a medical visa is granted.
Non-immigrant visa In order to enter Belgium for a stay longer than ninety days, you must apply for a non-immigrant (long-stay category D) visa based on the reason for your visit. The categories of non-immigrant visas are as follows:

Visa Category Explanation
Student visa For people who want to study in Belgium for more than ninety days, a student visa is granted. The requirements to be eligible for a student visa are as follows:

Studying will be your primary activity while in Belgium.

The applicant has sufficient funds to sustain themselves while visiting Belgium.

possesses health insurance in Belgium

There are no pending criminal accusations against your identity.

Evidence confirming your admission to a course at a recognized Belgian institution.

Visa for temporary worker Belgium offers three distinct types of temporary visas, each with a 12-month validity period. These visas cater to various needs and circumstances:

Category B Work Visa: This visa is granted to individuals who have a specific job offer from a particular employer. It is usually issued when there’s a shortage of specific skills or professionals within the Belgian workforce. This type of visa ensures that qualified foreign workers can fill critical positions in the job market.

Category C Visa: The Category C visa is suitable for applicants who are already in Belgium temporarily but not for work purposes. This category includes family members, students, and other non-working individuals. Those holding a Category C visa can explore job opportunities for which they are qualified, contributing to their financial sustainability during their stay in Belgium.

Au Pair Visa: Applicants between the ages of 18 and 26 who do not possess a work visa can still engage in work activities under the Au Pair visa category, provided they meet specific criteria. This visa option allows young individuals to experience cultural exchange while residing in Belgium.

These different types of temporary visas cater to a range of circumstances, from skilled professionals addressing workforce shortages to students and family members seeking to temporarily live and, in some cases, work in Belgium.

Non-immigrant family visa: To extend your stay in Belgium with a partner or relative, you need apply for a family reunion visa under the D category. You need to apply for a temporary residence permit in addition to a family visa. The visa can be renewed and is valid for a maximum of five years.
Immigrant Visa You must apply for a long-stay D category visa if you want to relocate to Belgium or stay longer than a year. Apply for a specific visa based on why you want to move to Belgium. The categories of immigration visas are as follows:

Visa Category Explanation
Family reunion visa The applicant can get a family reunion visa under specific criteria if they are allowed to live and work in Belgium with their parent, spouse, or other authorized family member.

You must have a suitable place to live, enough money to sustain your family, and documentation of your connection.

Work visa Usually, the employer applies for the work visa on the employee’s behalf.

The A category work visa is a long-term work permit that permits an individual to work for a company.

Entrepreneur Visa In Belgium, anybody wishing to work for themselves or launch their own company must apply for a professional card.

A professional permit enables autonomous trading and company operations.

Apply for a D category long-stay visa at the Belgian embassy in your nation of origin.

Work permits

For a foreign national to work in Belgium, they need to issue a work permit provided by employers.

Work permit
Can Marzuna sponsor a work permit in Belgium? Yes
Processing time 15 working days
Work permit process Step 1: Initial Application Submission

Begin the process by submitting a work permit application to the Belgian immigration authorities.

Step 2: Work Permit Approval and Visa Processing

Once the work permit is approved, the authorities will forward it to the Belgian embassy or consulate in your home country.

Step 3: Apply for Residence Visa

Visit the Belgian embassy or consulate in your home country to apply for a residence visa. This visa allows you to stay in Belgium while you work.

Step 4: Arrival and Registration

Upon receiving your visa and work permit, you can travel to Belgium. After your arrival in Belgium, it is important to register with the local authorities and provide them with your residential address.

This streamlined process ensures a smooth transition to living and working in Belgium

Work Permit Validity 12 months
When can an employee travel to Belgium? After issuance of a one-stop-shop work visa and residence permit, the employee can travel to Belgium.
Switch resident visa to work permit? No
After issuance of work visa and the residence permit, can the employee travel to Belgium switch resident visa to a work permit? No

Speak with Marzuna specialists to learn more about its sponsorship options for work permits.

Payroll and Taxes in Belgium

In Belgium, a firm does not need to register in order to process payroll. It is not necessary to open an in-country bank account in order to pay taxes and workers. Employers in Belgium are required to deduct withholding tax from employees’ salaries in order to maintain payroll compliance. Together with completing tax returns and creating individual paystubs for each employee, withholding tax must be paid to the tax authorities on a monthly or quarterly basis. Additionally, a portion of the employee’s wage must be contributed to the social security fund.

Taxes in Belgium

Tax Explanation
Income tax
Gross Income Tax Rate (%)
Up to €13,250 25
€13,250–€23,390 40
€23,390–€40,480 45
€40,480+ 50
Tax Returns Yes
Financial Year End Date December 31
Tax Documents Not Applicable
Corporate Tax 25%
Withholding Tax (For Non-Residents 25%
Payroll Tax No payroll tax applicable
Sales Tax 21%
Employers Social Security and statutory contributions Employers contribution- 25%

Employee contribution- 13.07%

Public Pension Belgium has a statutory pension scheme for all. The contributions are:

Employee – 7.5%

Employer – 8.86%

Medical Insurance Belgium provides a public health insurance scheme to every self-employed worker or employee in Belgium.

The Belgium EOR solution from Marzuna can handle all of your HR-related responsibilities while making sure that local laws—including tax laws—are followed. To find out more, speak with Marzuna specialists.

When a company is considering the establishment of a subsidiary in Belgium, several critical factors come into play. These include the choice of location, alignment with your business objectives, cost considerations, compliance with local laws and regulations, and the specific requirements of the city where you plan to set up your subsidiary. If you are unfamiliar with the intricacies of doing business in Belgium, seeking the guidance of a consultant can be invaluable in facilitating the smooth incorporation of your subsidiary. It’s essential to recognize that your company’s overarching goals are a pivotal determinant in the process.

Belgium offers various subsidiary structures, including PLC (public limited liability company), PLLC (private limited liability company), and S-PLLC (starter-private limited liability company). The choice of structure should align closely with your subsidiary’s intended operations and objectives. If you decide to set up your subsidiary in Belgium as a PLLC, the following steps should be followed:

  • Open an account with a Belgian credit institution and deposit a minimum of 20% of your initial capital into this account.
  • Obtain a standard certificate confirming the deposit of your capital in a blocked capital account.
  • Deposit a financial plan, sign the deed of in-laws, and complete the incorporation process in the presence of a notary.
  • Register the deed of incorporation and notarize the necessary documents.
  • Register with social security funds, handle payroll matters, and fulfill other obligations with the relevant welfare agency.
  • Organize workplace insurance and secure visas for professional staff, if needed.

At Marzuna, we offer a streamlined solution for your HR requirements by assuming the responsibilities of establishing a subsidiary as your EOR (Employer of Record) partner. We invite you to get in touch with us to discover how we can simplify this process and provide expert guidance for your subsidiary’s success.

Conclusion

Do you believe you are prepared to grow the business activities of your firm in Belgium? Employer of Record Belgium services from Marzuna may streamline the process by managing your HR needs in accordance with regional labor rules. Please contact us right now to learn more about how Marzuna’s payroll management services might benefit you.