Your guide to payroll in Belgium

Managing payroll in Belgium is essential for meeting the country’s financial and legal obligations. Employers must accurately handle salary calculations, social security contributions, tax withholdings, and documentation to pay employees in Belgium while maintaining full compliance.

Belgium’s labor framework sets clear rules on pay cycles, statutory benefits, minimum wage, tax requirements, and deductions, making compliance an important aspect of payroll management.

In this blog, you will find a detailed overview of payroll practices in Belgium and learn how to stay aligned with local regulations. Discover how Payoneer Workforce Management helps businesses streamline operations and maintain compliance, making talent engagement and payroll management in Belgium easier.  

Belgium payroll: Wages and other payments

In Belgium, payroll encompasses various components, including wage payments, statutory benefits, and compliance requirements that employers must adhere to.

Payroll cycle in Belgium

In Belgium, the remuneration of clerical workers should be disbursed at least once a month. It is usually done on the last day of the month. 

Minimum wages

As of January 1, 2026, the minimum wage in Belgium for fresh employees is EUR 2,242.81. Based on this, the corresponding minimum hourly wage of an employee is EUR 13.63. This amount shall gradually increase with seniority. 

Overtime pay

According to the Belgian Labor Law, the average weekly working hours are 38 hours. If working hours exceed the maximum working hours, the employer is required to pay overtime compensation to employees.

Overtime is allowed only in specific situations, with total working hours capped at 11 hours per day or 50 hours per week. A separate voluntary overtime system also exists. Here, employees can agree in writing to work additional hours without a required reason, up to 120 hours per year.

The overtime premium rates are as follows:

• 50% premium for overtime worked on weekdays and Saturdays
• 100% premium for overtime worked on Sundays and public holidays

The employer must calculate the overtime payment on the basis of ordinary remuneration, i.e., the average hourly wage that is to be paid for the day or the week on which the employee has worked overtime. 

Sick pay

In Belgium, sick pay is divided into two phases. 

• For the first 30 days, the employer pays the guaranteed salary to the employee. 
• After the 30-day slab is over, the health insurance fund (mutualité/ziekenfonds) offers the sickness benefits. 

Maternity pay

Female employees in Belgium are entitled to a maternity leave of 15 weeks. Out of this, a leave of 6 weeks is to be taken before childbirth, and 1 week before childbirth is considered mandatory. 

The maternity pay is not to be made by the employer; it is to be made from the health insurance fund. The amount disbursed goes as follows:

• For the first 30 days, employees will receive 82% of their gross salary with no upper limit. 
• From the 31st day, employees are entitled to receive 75% of the gross salary, typically capped.

Paternity pay

The duration for paternity leave in Belgium is 20 days. 

The employer pays 100% of the employee’s salary for the first 3 days, after which, employees receive a 82% of their salary as payment from the health insurance fund. 

Severance pay

In case of an employee’s termination, the employer has to pay severance pay to the employee that will be equal to the employee’s salary for the number of weeks the employee serves as notice period. 

Severance pay can be paid in two ways:

• The employee serves the notice period, and the employer pays the monthly salaries until the end of the notice period. 
• The employee does not work during the notice period, and the employer has to pay an indemnity equal to the salary for the duration of the notice period. 

In either case, the employer is bound to pay the 13th-month pay and any other holiday pay that the employee is entitled to receive. 

Payroll in Belgium: Contributions and deductions

The labor laws in Belgium also state that employers have to withhold taxes and other contributions from the employees’ payments. These deductions form a part of employee benefits.  

Personal income tax (PTI)

Employers have to deduct income tax in Belgium, ranging between 25% and 50% from employees’ salaries. The percentage of deduction depends on the employee’s income level.

Social security contributions (ONSS/RSZ) 

Both employers and employees have to pay a certain amount as social security contributions in Belgium. It is a mandatory withdrawal which is later used for allowances during emergencies like incapacity to work, family allowances, unemployment benefits, pensions, etc. 

Other employee benefits

Some other employee benefits are listed below:

Meal voucher

Employees shall receive meal vouchers if the provision is mentioned under a collective agreement at the company level and the sector level. The employers contribute EUR 8 per voucher, and employees contribute EUR 1.09. This value is determined by agreement. 

Annual bonus

If an employee has worked for at least six months, the employer has to pay a 13th-month salary, which is equal to 100% monthly salary. 

Holiday pay

If an employee has worked in a company for more than a year, they are entitled to 92% of the gross monthly salary. 

Belgium payroll compliance best practices

If you are a Belgian employer building a team with skilled professionals from across the globe, you should make it a point to pay attention to detail for accurate payroll management in Belgium. Here are some of the key points that you need to keep in mind: 

• You should typically never pay employees in Belgium in cash; they should always be transferred to the employee’s account.
• Stay updated about the changes in Belgian statutory requirements, labor laws, tax laws, and so on, and incorporate them with immediate effect. This helps maintain payroll compliance in Belgium.
• Maintain accurate documentation. Adhere to the payslip requirements in Belgium to maintain transparency. 
• Make sure that all your employees who handle the finances are adequately trained about the local labour and payment-related laws. 

Your options for payroll services in Belgium

International hiring may seem challenging. Here are a few ways in which hiring and paying employees in Belgium can be carried out easily:

• Businesses can hire independent contractors. Hiring independent contractors reduces the administrative burden on employers. They also manage their own taxes, which makes Belgium payroll processing and management easier. 
• Businesses can set up a legal entity in the country where they wish to hire employees. However, this is a time-consuming process and not feasible if the company wants to acquire talented employees from all across the globe. 
• Businesses can rely on a workforce management platform that supports onboarding, payroll, benefits, and legal compliance related to employment and other HR processes. 

By engaging talent through Payoneer Workforce Management, businesses can get assistance to navigate local compliance while also optimizing employment costs in Belgium. 

It streamlines payroll management in Belgium, benefits administration, and statutory obligations, making operations more efficient and easier to manage. 

This allows companies to focus on growth while the workforce is managed in a seamless manner.

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FAQs

1. What is the minimum wage in Belgium?

The minimum wage in Belgium is EUR 2,242.81. Employers cannot pay employees anything less than this. This wage increases on the basis of seniority. 

2. How is overtime calculated in Belgium?

If the people work overtime, you have to pay employees in Belgium an overtime premium. Employees shall receive 50% extra for weekdays and Saturdays, and 100% extra for Sundays and public holidays. 

3. Is it possible for employers to hire employees without a local entity?

Yes, businesses can hire global talent without setting up a local entity by using workforce management solutions like Payoneer Workforce Management. These platforms offer comprehensive support, ranging from onboarding and labor laws compliance to payroll management in Belgium and tax regulations, thereby reducing administrative burden. 

4. How is holiday pay calculated in Belgium?

Employers pay employees in Belgium a percentage of their gross salary as holiday pay, typically 92% of the gross pay. Employees are entitled to this only if they have worked with the company for a year.