Before you can successfully hire a professional workforce, every employer must be aware of Belgium’s most prominent labor laws. We provide a breakdown of common Belgian labor laws from employment contracts to handling severance pay.
1. Employment Contracts
There are two main types of employment contracts in Belgium: the permanent contract (Contrat à Durée Indéterminée – CDI), which is equivalent to an indefinite contract, and a fixed-term contract (Contrat à Durée Determinée – CDD). CDI contracts can be verbal or written; however, written contracts are recommended to avoid disputes. CDD contracts must be in writing and signed before the commencement of employment.
Fixed-term contracts cannot exceed two to three years, based on approval from the relevant authorities. Belgian employment contracts must contain the personal details of the parties involved, the job description, and the contract duration.
2. Working Hours and Overtime
The standard workweek in Belgium is 38 hours; however, hours may differ according to collective agreements. Employees are not permitted to work more than 48 hours per week. Working hours may differ depending on the industry.
Work performed outside of the standard workweek or agreed-upon working hours constitutes overtime. Overtime working hours are paid at a higher rate or compensated with time off. Employees who perform overtime work on a Saturday or a weekday are paid 150% of their standard wage. Work completed on a Sunday or a public holiday is compensated at 200% of their normal wages.
3. Minimum Wage
As of January 1st, 2025, Belgium’s national minimum wage is €2,111.89 per month or €12.82 per hour based on a regular workweek. The monthly minimum wage can be set at a higher rate under a collective bargaining agreement.
4. Employee Benefits
In Belgium, the mandatory employee benefits consist of social security contributions, health insurance, paid annual leave, sick leave, unemployment insurance, and an end-of-year bonus. These statutory benefits must be included in the employment contract.
To attract highly skilled employees, Belgian employers are encouraged to offer supplementary or fringe benefits. Such non-mandatory benefits include disability benefits, spousal pension, and additional medical and retirement benefits.
5. Payroll Tax or Social Contributions
Payroll tax includes social security contributions and personal income tax (PIT). Employers contribute between 25% and 35% of an employee’s gross salary to the social security scheme. Employees contribute 13.07% of their gross salaries to the fund. These mandatory contributions cover disability, retirement, unemployment insurance, and pensions.
The monthly personal income tax that employers must withhold from employees’ salaries is based on a progressive rate of between 25% and 50%. Higher income brackets are subject to the higher PIT rates.
6. Termination and Severance Pay
Before terminating an employment contract, employers must issue a written notice to the employee. The length of the notice depends on the employee’s years of service and seniority. If the written notice is not upheld, employers are responsible for paying an employee compensation in lieu of notice. After six months of hiring an employee, an employer must provide a valid reason for terminating the contract. It is important to note that probationary periods are not legally required in Belgium.
If an employer dismisses an employee without issuing the legal notice period, the affected employee receives severance pay. Severance equates to the wages the worker would have earned during the notice period. Furthermore, the Post-Labor Deal Act requires that employees with 10 years’ seniority receive at least 30 weeks’ written notice.
7. Foreign Workers
In Belgium, non-EU/EEA nationals must obtain a single permit consisting of a residence and a work permit. The employer must apply to the “Working in Belgium” online platform on behalf of the employee. If short-term work of less than 90 days is completed, then a short-term work permit is required.