Personnel in Belgium

If you employ personnel in Belgium who are resident abroad, tax and legal issues can quickly arise in this regard. The same applies to personnel who are resident in Belgium but work for your company abroad. In order to rule out legal problems at an early stage, it is often worthwhile to seek legal help in Belgium.

There are various ways of employing personnel in Belgium. You can do this either through a Belgian (subsidiary) company or directly through your foreign company. But what do you have to consider when you want to hire an employee in Belgium? This question is often asked, especially by foreign companies without experience in the Belgian (labour) market.

We will of course assist you in drawing up or reviewing employment contracts that comply with the law and the employment regulations under Belgian law, and we will advise you on questions regarding Belgian employment law and social security. There is still a strong need for advice on issues related to cross-border services, Belgian law on dismissal and salary optimisation.

To facilitate your entry into the Belgian labour market, we have prepared an overview of the most important aspects you need to consider if you want to hire an employee in Belgium. The focus is on a foreign company that wants to employ a worker in Belgium. The overview covers the following aspects, among others:

    1. Corporate tax: does the employment through a German company have corporate tax implications for that company?
    2. Personal income tax: where does the employee have to pay income tax on his salary based on the double taxation agreement?
    3. Social security: where is the employee covered by social security and what social security measures must be taken before an employee can start working in Belgium?
    4. Labour law: what are the specifics of Belgian labour law, both during employment and when the employment relationship is terminated? Theoretically, it is possible to declare German labour law applicable, but it is advisable to apply Belgian labour law if the employee works permanently in Belgium. German companies that employ workers in their Belgian branch should therefore definitely familiarise themselves with the specifics of Belgian labour law. This is because Belgian labour law differs from German labour law in many areas.
    5. Remuneration: What does a Belgian employee cost and how does the remuneration in Belgium work in practice?

These are questions that our law firm is confronted with on a daily basis. The overview is of course not exhaustive, but it will give you a global view of the employment of personnel in Belgium. If you have further questions on specific issues, you can of course always contact us for further advice. We accompany your company in the field of labour law and social security from A to Z: from the determination of the competent joint committee to the drafting of an employment contract and labour regulations to assistance with dismissals.

In addition to providing advice on the above-mentioned aspects, our law firm also aims to relieve your company of administrative tasks. In the interest of comprehensive and efficient support for our clients, we have cooperation structures with various partners:

Payroll accounting

If you employ personnel in Belgium, you must cooperate with a so-called social secretariat (a recognised payroll office) for payroll accounting. Our payroll partner supports foreign companies that employ personnel in Belgium but do not have an existing local payroll administration. A complete payroll package is offered to you, ranging from all the necessary formalities and registrations with the Belgian authorities (identification of the employer with the NSSO (National Social Security Office), the Dimona declaration of employees, the quarterly DmfA declarations, the connection to an external service for prevention and protection at work, the connection to a holiday fund, etc.), to the monthly payrolls and the calculation and payment of salaries and the deduction of payroll tax and social security contributions.

In other countries, payroll accounting is often done by tax consultants. In Belgium, however, this is not possible, you have to use the services of a social secretariat. A close link between us and the social secretariat is useful, especially in the case of cross-border salary problems, e.g. salary splits.

The social secretariat usually charges start-up costs of about €750 plus VAT, and the price per payslip is about €50 plus VAT. Our payroll partner can provide you with a non-binding offer.

Work accident insurance

You must take out work accident insurance for your Belgian employees, as you are liable as an employer for accidents at work and on the way to and from work. This is required by law.

The cost of this is on average 0.50% of the employee’s gross annual salary. This means that for an employee with a gross monthly salary of €5,000, you should allow for annual costs of about €350. If the employee’s job involves a higher risk, the work accident insurance will logically be more expensive. Our insurance partner can provide you with a non-binding offer.

Personnel | Euregio Law & Tax