Questions about Labour Law and Payroll 

What is indexation in Belgium?

If the health indicator, basis of the salary indexation in Belgium and reflecting the price evolution for a number of goods and services, exceeds a certain level, the salaries will also increase. How and when is determined by the Joint Committee per industry.

Which employment documents should I foresee for my workforce in Belgium?

Each employer, Belgian or foreign, must prepare, keep and retain work regulations, a staff register and individual accounts for its employees. By submitting a Limosa declaration, the foreign employer is exempt from having to draw up these “social documents” for a period of 12 months

What are work regulations?

The work regulations contain all salary and working conditions applicable within a company. Work regulations only need to be drawn up once and the content of and how to instate the work regulations are determined by law.

What are the binding provisions of Belgian labour law?

Rules you cannot deviate from in the contract such as rules regarding working hours and rest periods (limits on working hours, rest periods, Sunday rest, and rules concerning working on public holidays)​, minimum wages, the well-being of workers​,​ etc.

Should I appoint a representative in Belgium?

If you are a foreign employer and don’t have an establishment in Belgium, a manpower representative is required. The manpower rep has to retain all documents relating to the Belgian employment on behalf of the foreign employer for a duration of 5 years after the end date of employment of staff in Belgium.

What is a joint committee?

Per industry, a joint committee (“JC”) is set-up as a representative and advisory body of employers and employees. The JC develops and concludes collective bargaining agreements regulating the working conditions in the concerned industry.

Why is a Belgian shadow payroll necessary?

In particular circumstances, when either Belgian wage taxes or social security contributions have to be withheld from the employee’s salary and declared towards the Belgian authorities even though the net salary is paid out by a foreign payroll.

What are the main fringe benefits used in Belgium?

Meal vouchers, hospitalization insurance, group insurance, company car (although not winning in popularity these days), mobile phone, PC, internet, extra legal holidays are all very popular in Belgium.
Each of these benefits are subject to specific tax and social security rules and therefore might also constitute a taxable benefit in the hands of the employee.

What is double holiday pay?

In addition to paid leave (or single holiday pay), in Belgium, employees are also entitled to a holiday
pay, amounting to 92 % of the gross salary of the month in which the main holiday period is taken. The double holiday pay is proportioned to the part-time activity or in case no full reference year can be proven.

What is leave holiday pay?

Upon termination of the employment contract, Belgian law requires that an employer
pays leave holiday pay representing the holiday rights of the year of dismissal in case not all holidays have been taken AND the holiday rights that have been built up this year but can only be taken in the year following the year of dismissal.