Belgium provides many business opportunities for growth or expansion, with corporate tax incentives, a diversified economy, and a strong workforce. With 11 million people and 3 official languages, Belgium is a great stepping stone into the European market.
There are many options for companies looking to start or grow their business in Belgium. There are 4 common types of business entities to get started; Foreign Branch, Public Limited, Private Limited Liability, and Starter-Private Limited Liability. Belgian labor laws allow for different protections for workers depending on their level and type of work. Workers from outside the EU will need a work permit and visa to legally work in Belgium, and you must register employees with the social security administration and comply with employment regulations.
Payroll and Tax Considerations
- The current minimum wage is EUR 1,625.72 per month, paid by collective agreements
- Overtime is paid at 50% of regular pay and 100% on a Sunday or holiday
- The current income tax ranges from 25-50%
HR and Statutory Requirements
- An employee is entitled to at least 20 days (24 days for a 6-day workweek) of annual paid leave
- Employees are permitted to take sick leave as soon as they begin working. During the initial period of sick leave, sickness benefits are paid by the employer. After the first 7 days the amount and duration vary depending on the type of work
- Women are entitled to 15 weeks of maternity leave including 6 weeks before the birth and 9 weeks after the birth
- Full and part-time employees are entitled to 15 days of paternity leave within the first 4 months of the birth of a child
- Belgium has a mandatory contribution-based retirement scheme for all employees. The retirement age is 65 years until 2025, gradually increasing to 67 years by 2030
- The retirement pension is calculated as a percentage of the average monthly salary of the employee over the years of service. The pension is 60% of the average monthly salary
- Employment contracts must be in French, Dutch or German
- Once employees are hired the employer must register them with multiple government authorities. Penalties are high for non-compliance
- Meal vouchers are given to employees to use for meals outside the office (typically lunch), while Eco vouchers support the green economy by promoting the purchase of sustainable and eco-friendly products. Both vouchers are strictly regulated by the Belgium government
Holidays in Belgium
- January 1 – New Year’s Day
- April 17 – Easter Sunday
- April 18 – Easter Monday
- May 1 – Labor Day / May Day
- May 26 – Ascension Day
- June 5 – Whit Sunday
- June 6 – Whit Monday
- July 21 – Belgian National Day
- August 15 – Assumption of Mary
- November 1 – All Saints’ Day
- November 11 – Armistice Day
- December 25 – Christmas Day
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