Doing Business With a Belgium PEO/EOR
Belgium has an open economy and is one of the most globalized countries facilitating cross-border trading and business activities and attracts international businesses and investors. It is an exceptional location in the middle of the European market, giving it easy access to a sizable, wealthy EU consumer base.
With more than 140 million customers in a 300-mile range, Belgium is the second most populated European country. It is frequently referred to as the ‘crossroads of Europe’, with Gross Domestic Product (GDP) worth $599.88 billion in 2021. Its GDP contributes to 0.3% of the world economy. According to the World Bank’s report, Belgium’s GDP is expected to reach $610.00 billion by the end of 2022.
Belgium is great for entrepreneurs to establish a new business because of its history of aiding the growth of international business, customers’ expectations of high-quality goods, and its highly educated, bilingual workforce. In the World Bank Ease of doing business report 2020, Belgium ranked 46 out of 190 economies.
However, establishing a business in a new country can come with a range of difficulties including compliance with local laws and taxation system, HR onboarding, payroll management and so on. Hence, you can engage with a Belgium PEO if you plan to start a business in Belgium. Orientation and training and maintaining personnel in Belgium, including full-time and freelancing, can be handled by a reputable international PEO, like Multiplier.
Why Use a Belgium PEO?
Professional PEO services assist businesses in hiring staff in other countries without the need to form a formal corporation. While fresh recruits and headquarters teams concentrate on their organizational objectives, the International PEO manages all employee human capital, perks, payroll, and tax requirements.
However, it is time-consuming and costly to start a business adhering to local laws. Employing through a Belgium PEO or EOR is more efficient and effective, particularly when launching a business.
Multiplier PEO services hire employees on your behalf and formally license them through a partner in Belgium. We are in charge of compliance, and we ensure a smooth process to enable employees to begin working for your company in a few days! Working with global PEO services will save time, cut costs, and manage employee benefits. In Belgium, PEOs/EORs provide a more practical approach to hiring personnel, carrying out market research, and adjusting to shifting commercial demands.
Belgium PEO Costs
Most global PEO services cost varies depending upon various factors like the number of employees, annual income of the company, etc. Usually, the PEO services cost l between $500 and $1,500 per employee annually.
However, at Multiplier, we offer an affordable and transparent budget. Our PEO service starts at $300 per month per employee for full-time employees. This includes leave administration, overseeing payroll, compliance with local laws, HR management and other benefits. Organizations can also hire and pay freelancers globally by collaborating with Multiplier. The freelancer fee is $40 per month, which covers onboarding and paying freelancers worldwide.
Our uncomplicated and appropriate Belgium EOR solutions are designed to make payroll, hiring process, and benefits for your remote workers as straightforward as possible.
How to Hire in Belgium?
When hiring in Belgium, using the appropriate channels and adhering to all the local rules around staffing is crucial. Companies trying to fill office roles frequently use corporate employment portals to find national talent.
Any company that hires employees in Belgium must have a written employment contract outlining all job-related data. Companies must consider the employment policies and know about local entities for smooth expansion in Belgium.
Establishing a local entity
While setting up business in Belgium, you can consider the following options:
- Limited liability company
- Cooperative company
- Public limited liability company
Belgium employment contract
In Belgium, having written work contracts is not required. However, when in force, a formal employment contract—whether for full- or part-time employees—must unmistakably describe the employment conditions. Depending on the location of the job site, work contracts and employment-related documentation directed to employees (also known as social documents) are formulated:
Depending on whether a worker’s mother tongue is French or Dutch, contracts of employment must be written in those languages. Translations into the needed language might be used in place of documents originally written in another language.
Regardless of the employee’s native tongue, job contracts should be written in Dutch. Other language-prepared documents are regarded as invalid.
Region of Walloon
Employment contracts must be written in French. Documents produced in other languages are invalid, but a translation into French may be used in their place.
- A day’s maximum work time is 8 hours, and a week’s maximum is 38 hours.
- After 6 hours of work each day, workers are eligible for a period of rest that lasts at least 15 minutes.
- Daily minimum work time is 3 hours (depending on the industry).
- Working at night or during public holidays is applicable only under legal conditions.
- Any work done after 38 hours of the working week is liable for overtime compensation.
- An employee can only put in a maximum of 50 hours per week and 11 hours per day.
- A person who works overtime is entitled to at least a 150% increase in pay through the week and a 200% increase on Sundays and holidays.
- The national minimum Belgian salary applies to sectors of the economy that do not have a minimum pay established by their committees.
- The minimum wage in Belgium is €1658.2 a month (€19,898 a year).
The following ten public holidays are available to workers each year:
- January 1: New Year’s Day
- Easter Monday
- May 1: Labor Day
- The 6th Thursday after Easter: Ascension Day.
- 7th Monday after Easter: Whit Monday
- July 21: National Holiday
- August 15: Assumption Day
- November 1: All Saints Day.
- November 11: Armistice Day
- December 25: Christmas Day
Employees are entitled to extra compensation and makeup time off when they work on a holiday.
The amount of sick leave varies depending on whether an individual is a white-collar or blue-collar worker.
- Blue-collar employees: Blue-collar employees employed for at least 30 days before an illness or injury are eligible for 30 days of paid sick time. However, they receive partial pay.
- White-collar employees: White-collar employees can take a limit of 30 days of paid sick time. Employees are eligible for additional sick leave benefits if they sustain a new injury or sickness within 14 days of returning to work following a prior injury or illness.
There is no limit on the number of days employees may take off for illness, but each occurrence requires a doctor’s note.
- A female employee is eligible for six weeks of maternity benefits starting the day before the due date or eight weeks if she carries more than one child.
- Employees can apply for maternity leave within seven days from the due date.
- Employees can extend post-partum leave using the remaining leave time if the worker does not use all of the authorized maternity leave before delivery.
- The average maternity leave is fifteen weeks long:
- Six weeks before conception
- Nine weeks after birth
- Within four months of the baby’s birth, a father may take ten days of paid paternity leave.
- Employers pay for the first three days of leave, and the remaining days are covered by social security.
- If the mother requires hospitalization or passes away while on maternity leave, the father may take the remainder of the mother’s postpartum leave to care for the kid.
- In Belgium, wages are generally paid on the last day of the month for labor performed on the first and final day of the month.
- Based on the Joint Labor Committee, a 13th wage may be applicable. Some employers will include the first half of the 14th month’s compensation.
- Employers who do offer 13th-month bonuses often give them out at the close of the year.
- The 13th-month amount is paid pro-rata between the first and last years of employment, presuming the employee does not work a whole calendar year.
Taxation in Belgium
- Regardless of the country, Belgium taxes its citizens on their worldwide income.
- Residents of Belgium are only subject to Belgian income tax, while non-residents are subject to Belgian income tax on their entire income.
- Belgium follows a progressive income tax rate wherein higher income is liable for a higher tax rate. The tax rate varies from 25% to 50%.
- Tax rates are the same for resident and nonresident employees. However, a non-resident who earns at least 75% of their income in Belgium is entitled to some tax rebates.
Termination/Severance in Belgium
- Depending on the terms of the employment contract, different termination procedures apply; notice-based termination is the tightest type.
- Employers must mention the reason for the dismissal if the employee has been employed for at least six months.
- Some employees are protected against termination, which means their employer is not permitted to terminate the employment for specific reasons. For instance, pregnant women cannot be let go for being pregnant. Except for the grounds specified by law (such as employee representatives in the Works Council and the Committee for Prevention and Protection at Work (CPPW)), employers cannot fire an employee.
- All earnings that are still owed must be paid as soon as possible after the employment contract expires; at the latest, employers must provide them on the first payday that follows the date the employment contract terminates. (The Wage Protection Act’s article 11).
- Collective agreements entitle employees to additional compensation. Employees who have been fired for a significant reason or who have resigned are not entitled to any benefits.
The Belgium PEO solution from Multiplier makes it simple for companies to enter and conduct business abroad. You may manage recruit orientation, payroll, benefits, expenses, and other HR-related tasks. We ensure all pertinent rules, regulations, and legislation are adhered to strictly. In Belgium, we offer SaaS-based PEO and EOR solutions that enable you to keep a strategic advantage.
Our Belgium PEO Simplifies Your Expansion
- Managing and running international payrolls
- Provide workers with inexpensive insurance and perks for their area.
- Simple budgeting and compensation claims management
- 100% adherence to the law
- No demand for a local organization
- Absolute precision and openness
- There are no extra costs or hidden charges for transactions.
Contact our PEO Belgium experts immediately if you want to learn more about our options.