Employer Of Record in Belgium

The Employer of Record (EOR) solution in Belgium provides a straightforward route for expanding your business into the country, eliminating the need to set up a formal business entity locally. Through our advanced HR service platform, we offer comprehensive and automated management for your remote team, overseeing all aspects from beginning to end.

Our vast global network is readily available to facilitate a seamless and efficient expansion into the Belgian market. Explore further to learn about EOR Services’ customized and cost-effective solutions crafted to address your distinct business requirements.

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 crucial to have a firm understanding of the country’s employment laws, whether you intend to hire a local citizen or a foreign national. Moreover, you need to make a strategic choice regarding whether you should have an internal team or opt to recruit team members for your expansion project. Regardless of your decision, partnering with a local entity can significantly reduce the time and effort required to navigate the intricate landscape of employment regulations in Belgium.

Explore how EOR Services, acting as your trusted Employer of Record in Belgium, can simplify and streamline the employment process, providing you with the expertise and support required 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 strongly leans towards hiring full-time employees over contractors, with its employment regulations providing significant advantages to the former. The process of parting ways with a full-time employee can be financially burdensome for businesses.

When the need arises to terminate an employee, the severance package typically includes several months’ worth of salary, depending on their level of seniority and years of service with the company. In contrast, contracted employees are often engaged as temporary substitutes for experienced and skilled workers, offering companies flexibility in staffing and simplifying the payroll process.

The substantial tax burden imposed on full-time employees has led many to explore contract-based work as a strategy to mitigate their tax liabilities. This shift, driven by the inflexibility of Belgium’s employment regulations, has created more opportunities for contractors in the country.

For personalized business solutions that address your specific requirements in this ever-evolving employment landscape, don’t hesitate to engage with EOR Services’ experts. They can assist you in navigating the complexities of the Belgian labor market and making well-informed decisions for your expansion.

Recruiting in Belgium

Expanding your team in Belgium doesn’t always require the establishment of a local entity. When hiring employees in Belgium, the primary emphasis is placed on assessing the candidate’s professional skills and qualifications relevant to the job position.

Standard background checks, including evaluations of educational history, criminal records, health assessments, prior work experience, and eligibility to work in Belgium, are customary steps before confirming an employment offer. It’s essential to bear in mind that employers are legally prohibited from asking questions unrelated to the job’s nature and working conditions. Applicants hold the right to decline answering any inquiries that breach these legal boundaries and are unrelated to the job.

Moreover, once an employer decides to hire a candidate, they assume the responsibility of ensuring that the employee holds a single permit, granting them legal authorization to work in Belgium.

For a seamless and compliant hiring process in Belgium, consider collaborating with EOR Services, a trusted expert in the field. We can assist you throughout the hiring journey, ensuring legal compliance and a smooth transition into the Belgian workforce.

Probation & Termination

Probation Periods and Termination in Belgium

In Belgium, the practice of having probation periods is not typical, except in the cases of students and temporary employees. The presence and duration of a probationary period for students and temporary residents are usually established through mutual agreement and can range from no probationary period to a few days.

For employees falling into various categories, the rules regarding probation periods are as follows:

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

Termination of Employment in Belgium

Ending an employment contract in Belgium can take various routes. A fixed-term contract may naturally come to an end as it reaches its predetermined conclusion through mutual consent.

In situations involving misconduct, an employer has the authority to terminate a fixed-term contract before its scheduled conclusion, while on the other hand, an employee can resign if the employer’s conduct is inappropriate. It’s essential to keep in mind that the notice period for termination may differ for each employee, contingent on their individual circumstances and the characteristics of the employment arrangement.

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

While your central team focuses on the expansion of your business, the Employer of Record (EOR) assumes a pivotal role in the recruitment and onboarding of new employees in strict accordance with Belgium’s employment regulations. The EOR effectively steps into the role of the new employer for the workforce you bring on board, taking charge of a wide range of responsibilities, including compliance with local regulations, tax adherence, payroll administration, compliance with labor laws, and HR functions.

With the guidance and support of an EOR, you can initiate the hiring process without the necessity of establishing a formal entity within the country. This provides a more streamlined and flexible approach to expanding your workforce. EOR services offer comprehensive assistance, providing local insights and expertise tailored to the specific requirements of Belgium. Our experienced professionals manage essential tasks such as tax obligations and registration with the social security office on your company’s behalf.

Embracing the Outsourcing Approach Through an Employer of Record

Many businesses opt for outsourcing solutions like EOR and PEO to simplify the process of recruiting employees in a new country. The decision between building an in-house team or engaging a local entity with in-depth knowledge of the country’s legal landscape depends on your company’s strategy and goals. The EOR solution is designed to cater to these unique needs, overseeing the entire hiring process, payroll management, and compliance, streamlining your expansion efforts seamlessly.

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 We 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 our specialists to learn more about its sponsorship options for work permits.

Payroll and Taxes in Belgium

Payroll processing does not need a company to register in Belgium. Opening an in-country bank account is not required in order to pay employees’ salaries and taxes. In Belgium, employers must ensure payroll compliance by deducting withholding tax from employees’ earnings. Monthly or quarterly withholding tax payments to the tax authorities are required, in addition to filing tax forms and generating separate paystubs for every worker. In addition, the worker has to pay into the social security fund a share of their pay.

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 EOR solution in Belgium, provided by EOR Services, can effectively manage all your HR-related tasks, ensuring strict adherence to local laws, including tax regulations. For more information, get in touch with EOR Services specialists.

When a company contemplates establishing a subsidiary in Belgium, numerous pivotal factors must be considered. These factors encompass 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 intend to set up your subsidiary. If you lack familiarity with the intricacies of doing business in Belgium, seeking the guidance of a consultant can prove invaluable in facilitating the seamless incorporation of your subsidiary. It’s essential to recognize that your company’s overarching goals play a pivotal role 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 closely align with your subsidiary’s intended operations and objectives. If you opt to establish your subsidiary in Belgium as a PLLC, you should follow the steps outlined below:

• 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, manage payroll matters, and fulfill other obligations with the relevant welfare agency.
• Organize workplace insurance and secure visas for professional staff, if needed.

At EOR Services, 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

Are you ready to expand your company’s operations in Belgium? EOR Services in Belgium can simplify the process by handling your HR requirements in compliance with local labor regulations. Please reach out to us now to explore how EOR Services’ payroll management services can be advantageous for your business.