Setting up and managing payroll in Belgium
Belgium may be small in size, but its advanced economy, well-educated workforce, and strong connections in Europe and across the world make it an excellent place to grow a business.
If you are planning an expansion into Belgium, an important step will be hiring and paying employees locally. While this is a good way to access local talent and ensure you have a well-prepared workforce, it can be difficult to follow the nation’s combination of local and EU laws, its multiple languages, and unique administrative processes.
A popular way to bypass the complexity of handling Belgian payroll is to find a partner to manage your Belgium payroll setup and management. At Horizons, we will work with you to build and run a compliant, fully functional Belgian payroll to help you kickstart your expansion, whether or not you already have a registered entity in the country.
Why choose the Horizons payroll solution?
If you have an entity
Have you already registered an entity in Belgium? Our Belgium payroll outsourcing experts can take care of all of your payroll setup and management, helping you employ a workforce in Belgium in compliance with local employment laws and managing your ongoing HR, contracts, and more.
This service is ideal for larger organizations and those who have already registered a presence in Belgium but are looking to streamline their expansion.
If you don’t have an entity
If you have not registered a legal entity in Belgium, then our comprehensive Belgium payroll outsourcing services can cover your payroll setup and management, making use of our established Belgian subsidiary to act as employer of record.
This option is ideal for any organization aiming for a rapid, low-risk, and scalable route into Belgian hiring and expansion.
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Belgium payroll guide
What are the tax and withholding rules in Belgium?
Belgium follows a progressive taxation system for income tax. Workers must pay between 25% and 50%, with higher earners paying a higher percentage in tax.
Workers and employers must both pay a percentage of gross income to social security funds. Employers must pay 35%, and employees must pay 13.07%.
Contractual rights and termination regulations
Employees in Belgium should always be provided with a formal contract of employment. This contract should detail all entitlements, such as vacation leave, sick pay, parental leave, and so on.
When terminating employment contracts, notice periods must be provided, the length of which varies based on how long they have been with the employer. Usually, probation periods are not allowed, and the minimum notice period is two weeks (for employees of under three months). This increases incrementally up to 62 weeks after 21 years of employment. Beyond this, it increases by one week per year of employment.
Notice periods can be waived and equivalent pay provided as an alternative.
How to establish Belgium payroll outsourcing
Any organization trying to establish a Belgium payroll and hire staff in Belgium will generally need to establish a legal entity in the country and follow the country’s unique administrative procedures. However, this process can take longer than expected, as you will need to closely follow Belgium’s unique and often confusing business laws.
Alternatively, Horizons’ outsourcing can streamline your entire hiring and payroll process, facilitating your Belgian expansion and ensuring you are fully prepared to grow your business successfully. Our employer or record service means that you can even benefit from our solutions if you have not registered a legal entity in Belgium, utilizing our Belgian payroll outsourcing to act as employer of record for your employees.
Manage payroll in Belgium
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.