Belgium Hiring Employees Guide

Employment Contracts

• Indefinite-term contract (Arbeidsovereenkomst voor onbepaalde tijd / Contrat à durée indéterminée — CDI): The default contract type. No fixed end date. Termination requires notice (opzeggingstermijn / délai de préavis) ranging from 1 week (first 3 months of service) to 110+ weeks (for long-serving senior employees). The notice period is calculated based on seniority and salary level (the "claeys" formula). Severance pay (opzeggingsvergoeding / indemnité de préavis) is due if the employer does not require the employee to work the notice period.
• Fixed-term contract (Arbeidsovereenkomst voor bepaalde tijd / Contrat à durée déterminée — CDD): A contract with a defined end date. The maximum cumulative duration for a fixed-term contract (including renewals) is 2 years (if exceeded, the contract is deemed indefinite). Fixed-term contracts must be in writing and specify the end date or the specific task. Renewal beyond three times may convert to an indefinite contract.
• Part-time contract (Deeltijdse arbeid / Temps partiel): A contract with less than full-time hours (typically 38 hours/week). The employee must receive at least the pro-rata minimum wage. Flexible part-time schedules are possible but require a written "flexi-plan" (flexi-plan / plan de flexibilité). Employees with part-time contracts have priority for full-time positions within the company (the "right to request" full-time).
• Student contract (Studentenarbeid / Travail étudiant): Students aged 15–25 can work under a special student contract (studentenovereenkomst / convention d'occupation d'étudiant). The student pays reduced social security (2.5% instead of 13.07%) if they work ≤600 hours per year. The employer must register the student's hours with the National Social Security Office (RSZ/ONSS) via the Student@Work platform. The €600/hour limit is per student per calendar year (pro-rated).

Social Security Contributions

• Employee social security (RSZ/ONSS — Rijksdienst voor Sociale Zekerheid / Office National de Sécurité Sociale): All employees pay a flat-rate social security contribution of 13.07% of gross salary. This is withheld by the employer and paid to the RSZ/ONSS. The contribution covers: (a) healthcare (geneeskundige verzorging / soins de santé — ~3.8%), (b) pension (rustpensioen / pension — ~5.4%), (c) unemployment (werkloosheid / chômage — ~0.87%), (d) disability (arbeidsongeschiktheid / incapacité — ~0.5%), (e) maternity/paternity (moederschapsverlof / maternité — ~0.5%), (f) other social benefits (child benefit, occupational diseases — ~2%).
• Employer social security: The employer pays a base rate of approximately 24.97% (the "basisbijdrage / cotisation patronale de base") of the employee's gross salary to the RSZ/ONSS. Additional sectoral contributions may apply (the "sectorale bijdragen / cotisations sectorielles" — typically 1–5% depending on the Joint Committee / Paritair Comité / Commission Paritaire). Total employer social security is typically 27–30% of gross salary.
• Reduced social security for first hires: Employers who hire a first employee (or a first group of employees) may qualify for a structural reduction (structurele vermindering / réduction structurelle) of employer social security — a fixed monthly reduction of approximately €1,550 for the first year, reduced in subsequent years (the "startersvermindering"). The reduction is available for a maximum of 6 years.

Payroll Withholding Tax (Bedrijfsvoorheffing / Précompte Professionnel)

• Progressive withholding: The employer must withhold payroll tax (bedrijfsvoorheffing / précompte professionnel — PP) from each salary payment. The withholding is calculated using the official withholding tax tables (RSZ/ONSS publishes the tables annually). The withholding is progressive (starting at 0% for low incomes, rising to approximately 50% for high incomes). The withholding is a pre-payment of the employee's final personal income tax (IPP/personenbelasting).
• Calculation: The withholding is based on: (a) gross taxable salary (including fringe benefits — company car, insurance, meal vouchers above exemption), (b) family situation (marital status, number of dependents — the "kinderbijslag" and "belastingvrije som" adjustment), (c) commuting method (public transport subsidy is tax-free, reducing the taxable base). The withholding tax tables are available online from the FOD Financiën / SPF Finances.
• Filing and payment: The employer must file a monthly payroll return (the DMFA/DmfA — Déclaration Multifonctionnelle / Multifunctionele Aangifte) reporting all employees' wages, social security, and withholding tax. The DMFA is filed by the 15th of the following month. The withholding tax and social security contributions must be paid to the RSZ/ONSS and the FOD Financiën by the same date.

Fringe Benefits (Voordelen / Avantages)

• Meal vouchers (Maaltijdcheques / Chèques-repas): Employers typically provide meal vouchers worth €8.00 per working day. The employer contribution of €6.91 is tax-free and social-security-free (the employee may contribute €1.09). Meal vouchers are accepted at supermarkets, restaurants, and food shops. The scheme is regulated by the National Collective Bargaining Agreement (CCT/CAO nr. 8).
• Eco vouchers (Ecocheques / Chèques-éco): Up to €250 per year per employee. Eco vouchers can be used for environmentally-friendly products (energy-efficient appliances, sustainable products, gardening supplies). The employer contribution is exempt from social security and payroll tax up to €250.
• Company car (Bedrijfswagen / Voiture de société): The most significant fringe benefit in Belgium. The taxable benefit (VAA — Voordeel Alle Aard / ATN — Avantage Toute Nature) is calculated based on the car's CO2 emissions and list value. Formula: list value × CO2 percentage (ranging from approximately 4% for zero-emission EVs to 18% for high-emission vehicles). The resulting benefit is added to the employee's taxable income and subject to payroll tax and social security. For 2026: (a) Electric vehicles (EVs): the CO2 percentage is capped at 4% (list value × 4% × contribution to taxable income). The VAA for EVs is approximately €1,200–€2,000/year (very low). (b) Petrol/diesel/hybrid: CO2% = 5.5% + (CO2 g/km − reference) × 0.15%. The reference CO2 value is approximately 65 g/km (2026, decreasing annually). A typical petrol car with 120g CO2/km might have a VAA of €3,000–€6,000/year. (c) The employee also pays a solidarity contribution (solidariteitsbijdrage / cotisation de solidarité) of approximately €15–€80 per month (paid by the employer but charged back to the employee under some arrangements).
• Telework allowance (Thuiswerkvergoeding / Indemnité de télétravail): Since 2024, employers can provide a tax-free telework allowance of €150.21 per month (for employees who regularly work from home). The allowance covers home office costs (electricity, heating, internet, office supplies). The allowance is exempt from social security and payroll tax.
• Hospitalisation insurance (Ziekenhuisverzekering / Assurance hospitalisation): Group hospitalisation insurance provided by the employer to all employees (or a category) is a common benefit. The insurance premium is deductible for the employer and exempt from social security/payroll tax for the employee. The insurance covers the difference between the actual hospital cost and the "mutualiteit" (public health insurance) reimbursement.
• Group insurance (Groepsverzekering / Assurance de groupe) — pension: The employer can contribute to a group insurance plan (second-pillar pension). Employer contributions are exempt from social security up to certain limits. The benefit to the employee is the future pension capital, which is subject to a favourable tax regime (final tax at disbursement — typically 10% to 16.5% depending on the age and type of capital).

13th Month and Holiday Pay

• Eindejaarspremie (13th month / Prime de fin d'année): Most Belgian employers pay an end-of-year bonus (eindejaarspremie / dubbel vakantiegeld — actually distinct from the double holiday pay). The amount is typically one month's gross salary (the "13th month"). The premium is subject to social security (employee: 13.07%, employer: ~27%) and is paid in December. Some sectors have collective agreements mandating the 13th month; for others, it is discretionary. If discretionary, the employer must ensure the premium does not trigger a deemed "claeys" increase in the notice period (the premium may be considered part of the employee's normal remuneration).
• Double holiday pay (Dubbel vakantiegeld / Pécule de vacances simple): In addition to the normal holiday pay (the "enkel vakantiegeld" — the employee's monthly salary during the holiday period), Belgian employees receive a double holiday pay — typically an additional month's salary paid in May or June (before the summer holiday period). The double holiday pay is subject to a reduced withholding tax (approximately 20% instead of the regular progressive rate). The double holiday pay is not subject to social security (neither employer nor employee — though the employer pays a special holiday fund contribution).

Wage Indexation (Automatic Indexation)

• The Belgian indexation system: Belgium is one of the few EU countries with automatic wage indexation. Wages are automatically adjusted when the health index (gezondheidsindex / indice santé) exceeds a threshold (the "spilindex / index-pivot"). The health index is the consumer price index excluding certain products (petrol, diesel, alcohol, tobacco). The threshold is approximately 2% above the previous trigger point.
• How indexation works: When the health index crosses the spilindex (approximately every 6–12 months), all salaries, minimum wages, and social benefits are increased by the percentage change. The indexation mechanism is set by the Central Economic Council (Centrale Raad voor het Bedrijfsleven / Conseil Central de l'Économie) and is mandatory for all sectors. The timing of the next indexation depends on the health index movement — market forecasts indicate the next indexation will occur approximately in 2026 Q3 or Q4.
• Impact on employers: Wage indexation is a significant cost driver for Belgian employers, especially in labour-intensive sectors. The indexation applies to all employees regardless of performance or company profitability. Employers cannot renegotiate salaries to offset indexation (the indexation is mandatory and cannot be waived by agreement).

Ending Employment

• Notice period: The notice period (opzeggingstermijn / délai de préavis) depends on seniority and the employee's annual salary. For "blue-collar" workers (arbeiders / ouvriers): 28 days during the first year, increasing by 7 days per year of service (max 5 years). For "white-collar" workers (bedienden / employés): the minimum is 1 month per year started of service (for the first 5 years), then 2 weeks per year. The maximum notice period for white-collar workers is 110+ weeks. Since the 2014 "Eenheidswet / Loi Unique" reforms, blue-collar and white-collar notice rules have been partially harmonised.
• Severance pay (Opzeggingsvergoeding / Indemnité de préavis): If the employer terminates the employment without notice (or with a shorter notice period), the employer must pay severance in lieu of notice. The severance equals the salary that would have been earned during the required notice period. The severance is subject to social security and payroll tax.
• Protected employees: Certain employees have enhanced protection against dismissal: (a) pregnant employees (from the date they notify the employer until 1 month after maternity leave), (b) employee representatives in the works council (OR/CE — Ondernemingsraad / Comité d'Entreprise) or Committee for Prevention and Protection at Work (CPBW/CCT — Comité voor Preventie en Bescherming op het Werk / Comité pour la Prévention et la Protection au Travail), (c) employees on sick leave (within certain limits), (d) employees who have filed a complaint against the employer (whistleblowers).

For related reading, see our Personal Tax Guide →, Corporate Tax Guide →, and Cross-Border Tax Guide →.