Easily manage employment in Belgium

Payroll services in Belgium

Belgium has a highly regulated economy with key industries in manufacturing, finance, and technology. With strict labor laws and tax regulations, employers in Belgium must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Belgium

Employers in Belgium must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Belgium’s minimum wage is set at EUR 2,029.88 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Belgium is 38 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 150% of the regular wage for extra hours and 200% for work on Sundays or public holidays.

Taxation and social security contributions

• Personal income tax: Belgium has a progressive income tax system with rates ranging from 25% to 50% depending on income levels.
• Employer contributions:
• Social security: Approximately 25% of the gross salary.
• Additional sector-based contributions may apply.
• Employee contributions:
• Social security: Approximately 13.07% of the gross salary.
• Corporate tax: The corporate income tax rate in Belgium is 25%.
• Tax reporting: Employers must file payroll taxes and contributions with the Belgian tax authorities regularly.

Payroll compliance in Belgium

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Belgium’s labor laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

• Payroll frequency: Salaries are generally paid monthly.
• Currency: Payroll in Belgium is processed in Euros (EUR).
• Tax reporting: Employers must file payroll taxes and contributions with the Belgian tax authorities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Belgium with Remote

Managing payroll in Belgium requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.