Our guide to Payroll in Belgium

Doing Business in Belgium

Investing in Belgium

The government welcomes inward investment from foreign companies, providing an array of tax benefits and shelters to encourage inward investment in key growth areas for the country. Tax benefits vary according to government strategy, but generally, the country is always open to investment opportunities.

Basic Facts about Belgium

How to Say

• Hello: Hallo
• Good Morning: Goedemorgen
• Good Evening: Goedenavond
• Do you speak English? Spreek Je Engels?
• Goodbye: Tot Ziens
• Thank you: Dank u
• See You Later: Zie Je Later

Registrations and Establishing an Entity

Identification as an employer is carried out via the 'WIDE' application (Werkgever-IDentificatie/ion-Employer). Each employer must be identified with the Banque Carrefour des Entreprises (BCE) and have a unique company number. The identification of employers with public authorities is done based on this company number (BCE number).

After processing the electronic application via 'WIDE', the employer will receive a notification from the ONSS containing:

• The final ONSS number.

• The BCE number if the ONSS assigns the BCE number.

• The NACE code (general classification of economic activities in the European Community) qualifies the activities of their company.

• The employer categories assigned.

The service provider receives a copy of this notification. Identification as an employer with the ONSS is not only included in the directory of employers but also the BCE. Only the employer listed in the directory of employers has access to online social security services and any change relating to the company (head office, address, activity, legal form, etc.) must be communicated to the BCE.

Banking

Payments to the Belgian authorities and employees in Belgium can be made from a bank account outside Belgium.

Working Week

The regular working week in Belgium is Monday to Friday, however, in some sectors, including retail and hospitality, the working week can range from Monday to Sunday. Working hours must not surpass 8 hours per day or 40 hours per week.

Employment Law

Minimum Wage in Belgium

Belgium operates a hybrid minimum wage system:

National Minimum Wage (GAMMI): As of April 2026, the Guaranteed Average Monthly Minimum Income is:

• €2,189.81/month

•  €13.29/hour for a 38-hour week

Sectoral Minimum Wages: Negotiated through collective labour agreements (CCTs) within joint committees, and typically 19% higher than the GAMMI

Factors Considered in Sectoral Wage Agreements:

• Field of work

• Working hours

• Level of seniority

New: EU Pay Transparency Directive (June 2026)

Belgian employers must publish salary ranges in job listings. They cannot ask for salary history during recruitment process and they need to set up gender-neutral job evaluation systems. Employers must correct pay differentials if they exceed a certain threshold.

New: Working Time Recording (2027)

From 1 January 2027, the government intends to introduce a requirement to record employees’ working hours.

Holiday Accrual

Annual Leave Entitlement:

Full-time employees: 4 weeks of paid leave per year. White-collar employees: 2 days per completed month of work in the previous year.

Holiday Pay:

Single holiday pay: Regular salary during leave. Double holiday pay: Bonus of 92% of gross monthly salary, paid typically in May or June.

Departure Holiday Pay:

Must be settled upon termination. Includes unused leave and accrued rights for the next year.

New Rule (2024):

Untaken leave due to illness can be carried forward for up to 24 months.

Maternity Leave

• Total: 15 weeks

• Up to 6 weeks prenatal (1 week mandatory)

• 9 weeks postnatal (mandatory)

Maternity Allowance:

• First 30 days: 82% of gross salary

• From day 31 onward: 75% of gross salary

• Paid by the health insurance fund, not the employer

Paternity (Birth) Leave

Since 2023, fathers/co-parents are entitled to 20 days of paternity leave. Must be taken within 4 months of birth or adoption.

Payment:

First 3 days: 100% of salary (paid by employer). Remaining 17 days: 82% of gross salary (paid by health insurance fund).

Sick Leave

• First 30 days: Paid by employer at full salary

• After 30 days: Sickness benefits paid by the Health Insurance Fund (Mutuelle/Ziekenfonds)

• After 1 year: the incapacity benefit becomes a disability benefit

Requirements:

• Employee must notify employer immediately

• Medical certificate may be required

• Employers may arrange medical checks via a control doctor

National Service

No mandatory national service since 1995

Belgium now operates a voluntary military service program:

• 12-month civic-style engagement

• Participants earn ~€2,000/month

• Aims to recruit 500 young people annually
  

Tax & Social Security

Income tax

Runs from 1 January to 31 December.

Employers are obliged to deduct Professional Withholding Tax (PWT or Precompte Professionel in French) from their employees' earnings per the issued tax withholding tables. The employing entity is responsible for withholding income taxes and any social security contributions payable from employment income and pensions, for making payment to the employee of any Belgian government allowances, and for making the required returns to the Belgian authorities.

Manual workers must be paid at least twice a month with no more than 16 days between the payments and white-collar workers must be paid at least once a month. A salary payment is due at the very latest four working days after the end of the period to which it relates. As an example, the April salary must be paid by the 4th working day in May.

Please see below for detailed tax rates for 2026 (assessment year 2027):

Income Bracket (EUR)   

• €0 – €16,720: 25% (Tax Rate)
  

• €16,720 – €29,510: 40% (Tax Rate)
  

• €29,510 – €51,070: 45% (Tax Rate)
  

• Over €51,070: 50% (Tax Rate)
  

Social Security

Belgium’s social security system is funded by employer and employee contributions. Contributions are quarterly, monthly advance payments are often made. These contributions provide a wide range of benefits:

Benefits Covered:

• Sickness allowances
  

• Unemployment benefits
  

• Incapacity allowances (due to illness or invalidity)
  

• Work accident compensation
  

• Industrial disease allowances
  

• Family allowances
  

• Pensions
  

Contribution Rates for 2026

Reporting

Monthly

The employer must make a final year-end report of employment income that provides a detailed breakdown of each employee's earnings.

The employer must remit the funds deducted via PWT to the Federal Fiscal Administration based on the following timetable:

• Small employers (annual remittances less than EUR 51,480) make a quarterly remittance.

• Large employers (annual remittance EUR 51,480 or more) make a monthly remittance.

Payment of the funds deducted must be made to the fiscal authorities by the 15th day of the month following the end of the month or quarter.

Yearly

At the end of the tax year, employers must prepare and submit a detailed employment income report:

Form 281.10:

• Issued to each employee.

• Includes:
  a)    Total gross earnings
  b)    Taxes withheld
  c)    Social security contributions
  d)    Must also be submitted to the Federal Public Service Finance.

Accurate and timely submission is essential to avoid penalties and ensure employees can file their personal tax returns correctly.

Payroll

It is legally acceptable in Belgium to provide employees with online payslips, but the employer must obtain each employee's express written permission to do so. The employer must provide the employee with a written statement of pay each time that their salary is paid.

Reports

Payroll reports must be kept for at least seven years.

New Starts

Employers must submit a DIMONA IN Declaration to Déclaration IMmédiate/ONmiddellijke Aangifte (DIMONA) to register new employees with the National Social Security Office (NSSO) before their first day of work.

Failure to submit a DIMONA IN on time can result in fines and compliance issues, especially in sectors with strict labor controls (e.g., construction, hospitality).

Leavers

Employers must submit a DIMONA OUT Declaration to Déclaration IMmédiate/ONmiddellijke Aangifte (DIMONA) to register leaving employees with the National Social Security Office (NSSO). This must be submitted, at the latest, the next working day after the last day of employment.

Employers must give employees notice of their employment termination in writing. The employee must also be given paid time off during their notice period to look for other employment.

Employee Benefits

Taxable Employer Benefits

These benefits are considered benefits in kind and are subject to income tax and social security contributions:

• Company car (including fuel card)

• PC and internet subscription (if used for personal purposes)

• Smartphone / tablet

• Housing provided by employer

• Free heating and electricity supply

These are typically valued using standard formulas set by the Belgian tax authorities to determine their taxable value.

Non-Taxable Employer Benefits

These benefits are exempt from tax if they meet specific conditions:

These benefits must be clearly documented and uniformly distributed to qualify as non-taxable.

Expense Reimbursements

Reimbursements for business-related expenses are tax-free, provided they meet compliance standards:

Tax-Free Reimbursement Types:

• Costs Proper to the Employer (CPE): Expenses directly related to business activities (e.g., travel, client meals, office supplies)

• Mileage reimbursement: Tax-free if paid within government-approved rates (e.g., €0.4440/km as of July 2026)

Reporting Requirements:

• All reimbursed expenses must be reported on Form 281.10 or 281.20

• Employers must classify reimbursements using one of three methods:

  • Based on receipts

  • Based on serious and consistent standards

  • Not based on serious standards (least preferred; subject to scrutiny)

Failure to report properly may result in penalties or reclassification as taxable income.

General Work Permit Rules

Short-Term Work Permit (Type B)

For non-EEA nationals working in Belgium for ≤90 days within a 180-day period:

Eligibility:

• Transferred short-term to a Belgian branch of a UK-based company
• Providing short-term services to a Belgian client

Conditions:

• Must meet minimum salary thresholds

• Must retain UK employment contract and stay on UK payroll

• Dependents not permitted

Processing Time:

• Typically 4 to 12 weeks

Single Permit – EU Intra-Company Transfer (EU ICT)

For non-EU employees transferred to a Belgian branch for >90 days:

Eligibility:

• Must be a manager, specialist, or trainee

• Employed abroad for ≥3 months (or 6 months in Brussels)

• Trainees must hold a bachelor’s or master’s degree

• Must retain foreign employment contract and stay on foreign payroll

• Belgian host company and company outside EU belong to the same company or group of companies

Salary Requirements:

• Managers: ≥160% of Belgian average gross salary
• Specialists/Trainees: ≥100% of Belgian average gross salary

Processing Time:

• Up to 90 days
• Valid for 1 year, extendable to 3 years for managers/specialists

Dependents:

• Permitted

EU Blue Card

For highly qualified non-EU nationals with a job offer from a Belgian employer:

Eligibility:

• Employment contract for at least 6 months

• Must be on Belgian payroll

• Hold a higher education degree (minimum 3 years)

Meet regional salary thresholds:

• Flanders: € 63,586/year

• Brussels: €56,976/year

• Wallonia: € 68,815/year

Processing Time:

• Up to 90 days

• Valid for 1 to 3 years, renewable

Dependents:

• Permitted

Key Update 2026 

Belgium caps employer social security contributions for high salaries. Contributions will only apply to income below EUR 86,700 per quarter, indexed over time.

Please also note that there are exemptions for one to five employees and for certain categories such as students.

Special employer contributions (e.g., Closure Fund, Social Security Fund) will still apply to the full salary amount, regardless of the cap.