Hire employees in Belgium using an Employer of Record

Your competitor just hired three people in Belgium in two weeks. You're still stuck trying to figure out if you need a business entity.

Belgium's talent pool is impressive – multilingual professionals, strong tech scene, central European location. But the hiring process? Let's just say it involves more government agencies than you'd expect and compliance requirements that can trip up even experienced HR teams.

You've got three ways to hire in Belgium, each with very different cost and complexity profiles.

Option 1: Set up your own entity

• Cost: €15,000-40,000 upfront, €8,000-15,000 annual maintenance

• Timeline: 4-6 months minimum

• Complexity: Full tax registration, payroll system, legal compliance, HR infrastructure

• Makes sense when: Hiring 20+ people long-term, permanent market presence

Option 2: Hire contractors

• Cost: None upfront, but limited control

• Timeline: Immediate

• Risks: Misclassification fines (€2,000-10,000), back taxes, legal disputes

• Makes sense when: Short projects (< 6 months), specialized skills

• Note: Hire with Columbus also handles contractor agreements and payments

Option 3: Use an employer of record (Recommended for most)

• Cost: $179/month per employee

• Timeline: 2-3 days to hire

• Complexity: None – we handle everything

• Makes sense when: 1-50 employees, testing markets, multi-country teams

If you're hiring 1-10 people, entity setup costs more than 3-4 years of EOR fees ($179/month = $2,148/year per employee vs €15,000+ upfront). An EOR like Hire with Columbus handles employment contracts, payroll, taxes, benefits, and compliance updates while you focus on managing your team. Hiring 3 people costs $537/month vs €25,000+ entity setup plus ongoing maintenance.

Ready to hire in Belgium without the legal headaches? Get started with Hire with Columbus.

What employment types can you use?

You've got three ways to bring someone onboard in Belgium, and the choice affects everything from your timeline to your budget. Let's break down your options before diving into specific contract types.

How can you hire in Belgium?

Your decision comes down to this:

Set up your own entity

This means incorporating a Belgian company and handling everything yourself. You'll need €15,000-25,000 upfront for incorporation, legal fees, and initial setup costs.

The timeline? Plan for 4-6 months minimum. You'll register with the Belgian tax authorities, set up payroll systems, establish banking relationships, and build HR infrastructure from scratch.

Ongoing costs hit hard too. Expect €3,000+ monthly for accounting, €2,000+ for payroll services, plus legal compliance fees. Makes sense if you're planning 20+ employees long-term and want permanent market presence.

Hire contractors/freelancers

The fastest option — you can start tomorrow. But Belgium's worker classification rules are strict, and misclassification penalties reach €50,000 per violation plus back taxes and social contributions.

You can't control contractors like employees. No setting work hours, no requiring specific tools, no integrating them into team meetings the same way. Works for specialized projects under 6 months, but that's about it.

Fun fact: Hire with Columbus also handles compliant contractor agreements and payment processing if you need genuine freelance work done.

Use an employer of record (our recommendation)

Hire with Columbus becomes the legal employer in Belgium while you manage the day-to-day work. We handle employment contracts, payroll, tax compliance, benefits, and legal requirements.

Cost is $179 per employee per month. Timeline? Hire someone in 2-3 days instead of months. For 5 employees, you're paying $895 monthly versus €25,000+ entity setup plus €8,000+ monthly overhead.

The math works until you hit 20+ employees and plan to stay in Belgium permanently.

Employment contract types in Belgium

Once you've decided how to hire (hopefully through an EOR), you need to pick the right contract type. Belgium offers several options, each with specific rules.

Permanent contracts (CDI — Contrat à Durée Indéterminée)

This is your go-to for full-time core roles. No end date, maximum job security for employees, and the most flexibility for you as an employer.

Probation periods run up to 12 months depending on the role level. Notice periods start at 3 weeks for new hires and scale up based on tenure and salary level.

Most Belgian employees expect permanent contracts. It's the cultural norm and provides the stability that makes accepting international roles easier.

Fixed-term contracts (CDD — Contrat à Durée Déterminée)

Maximum 4 years total, including renewals. You can renew up to 3 times, but after that, the contract automatically becomes permanent.

Use these for maternity cover, seasonal work, or specific projects with clear end dates. Don't use them to avoid permanent contract obligations — Belgian courts see through that quickly.

After 4 consecutive fixed-term contracts or 4 years total, the employee gains permanent status automatically. Keep this in mind when planning your hiring strategy.

Part-time contracts

Part-time employees get the same rights as full-time workers, prorated for hours worked. Minimum 3 hours per day, 1/3 of full-time hours per week.

You must offer additional hours to existing part-time employees before hiring new staff for the same role. It's called "right of first refusal" and it's legally binding.

Overtime rules still apply. Anything over their contracted hours counts as overtime with premium pay rates.

Temporary agency work

You hire through a licensed Belgian temp agency. Useful for very short-term needs (under 3 months) or when you need someone to start immediately while permanent hiring processes run.

Costs more than direct hiring — expect 30-50% markup over base salary. The agency handles all employment obligations, but you can't convert temp workers to permanent employees easily.

Student contracts

Special category for hiring university students during studies. Lower social security contributions (only 8.13% instead of 25%+), but strict limitations.

Students can work maximum 475 hours per year under this contract type. Exceed that, and you pay full social contributions retroactively. Perfect for internships or part-time support roles.

Which contract type should you choose?

For most international hires, permanent contracts work best. They provide stability that makes relocating or changing jobs easier, and they're what Belgian professionals expect.

Use fixed-term contracts only when you genuinely don't know if the role will continue beyond a specific project or timeframe. Don't use them to "test" employees — that's what probation periods are for.

Part-time contracts make sense for roles that genuinely don't require full-time hours or when accommodating employee requests for work-life balance.

Hire with Columbus handles all contract types and ensures you're compliant with Belgian employment law from day one. We draft the contracts, manage renewals, and handle any conversions between contract types automatically.

How does payroll and taxation work?

Most companies get blindsided by the real cost of hiring in Belgium. That €60,000 salary? It'll actually cost you around €84,000 once you add employer contributions and taxes. We're talking 40-50% more than the base salary.

Belgium's tax system is progressive, so higher earners pay more. But the real complexity comes from social security contributions. Both you and your employee pay into multiple systems, and if you mess up these calculations, you're looking at some serious fines.

Income tax brackets

Belgian employees pay federal income tax plus regional taxes that change based on where they live. The federal breakdown for 2025 looks like this:

Then you've got regional taxes ranging from 6.75% to 11.25% depending on whether they're in Flanders, Wallonia, or Brussels. Most international companies find this multi-layered system confusing, especially when employees move between regions.

Social security contributions breakdown

This is where your budget takes a hit. Both you and your employee contribute to Belgium's social security system:

That 25% employer social security contribution is brutal. It covers healthcare, unemployment, pensions, family allowances, and more. There's no cap either, so you're paying 25% on every euro of salary.

Payment schedule and bonuses

Belgian employees get paid monthly, usually on the last working day. But there's a catch most companies miss: you're legally required to pay a 13th month bonus called a "holiday allowance" that equals 92% of one month's gross salary.

This holiday allowance gets paid in May or June, depending on your company policy. Some sectors also require a 14th month bonus in December, though this varies by collective bargaining agreement.

You'll also need meal vouchers (€8 per working day is standard) and potentially a company car or mobility budget if you want to stay competitive.

Total employment cost example

Let's break down what a €60,000 salary actually costs you:

• Base salary: €60,000

• Employer social security (25%): €15,000

• Holiday allowance (92% of monthly salary): €4,600

• Occupational accident insurance (0.3%): €180

• Meal vouchers (€8 × 220 working days): €1,760

• Total annual cost: €81,540

That's 36% more than the base salary, and we haven't even included potential company car costs, additional insurance, or sector-specific contributions.

Payroll cycle and deadlines

Belgian payroll deadlines are tight and unforgiving. Social security declarations are due by the 15th of the following month, and payments must be made by the same date.

Income tax withholdings get paid monthly to tax authorities, with annual reconciliation by June 30th. Miss these deadlines and you're looking at penalties starting at €50 plus 7% annual interest.

Year-end processing is a real headache. You need to issue salary certificates to employees by January 31st and file annual declarations by March 31st. Most companies without local expertise mess up the timing.

Common payroll mistakes

The biggest mistake? Miscalculating social security contributions for employees with multiple income sources or part-time workers across multiple employers. Belgium has complex rules about contribution ceilings that change based on total earnings.

Another costly error is missing sector-specific requirements. Many industries have collective bargaining agreements requiring additional contributions or benefits beyond legal minimums. Construction, hospitality, and healthcare have particularly complex rules.

Companies also frequently mess up holiday allowance calculations, especially for mid-year hires or employees taking unpaid leave. The calculation isn't straightforward and it's based on the previous year's earnings with specific formulas for new hires.

Setting up payroll in Belgium yourself:

• Local payroll provider: €150-300/month per employee

• Compliance software: €200-500/month

• Legal/tax advisor: €200-400/hour

• Penalty risk: Up to €1,250 for late filings plus 7% interest

With Hire with Columbus: $179/month per employee, fully compliant payroll processing, zero penalty risk, and we handle all the sector-specific requirements automatically.

What benefits and leave are required?

Belgian employees get 20 days minimum vacation, but most companies offer 25-30 days to stay competitive. You'll also pay salary 13.92 times per year thanks to holiday pay and end-of-year bonuses. This catches many international companies completely off guard.

The benefits system here covers a lot of ground, but it's split between what you pay directly and what gets handled through social security. Let's break down what you're legally required to provide.

Annual vacation leave

Every Belgian employee gets at least 20 working days of paid vacation per year. That's the legal minimum, but good luck attracting talent with just 20 days. Most companies offer 25-30 days.

Vacation days accrue monthly at 1.67 days per month worked. Employees can carry over unused days to the following year, but only until March 31st. After that, you either pay them out or lose them.

When someone leaves, you must pay out all accrued but unused vacation days. This includes both the days themselves and the vacation pay. The calculation can get messy, especially with Belgium's holiday pay system.

Sick leave entitlements

Employees can take sick leave for up to one year, but who pays depends on how long they're out. You pay 100% of salary for the first 30 days (called "guaranteed salary"). After that, social security takes over and pays about 60% of their salary.

Employees need a doctor's certificate from day one if they're sick for more than three consecutive days. For shorter absences, they can self-certify for the first three days. You can request a doctor's note if you suspect abuse.

The guaranteed salary period can be shorter for new employees. It's one month of guaranteed pay per year of service, with a minimum of 30 days. So someone who's worked for six months only gets 15 days of guaranteed salary.

Parental leave breakdown

Maternity leave: 15 weeks total. One week before birth (optional) and 14 weeks after. The first 30 days are paid by the employer at 82% of salary, then social security pays about 75% of capped earnings.

Paternity leave: 15 days within four months of birth. The first three days are paid by the employer at 100% salary. The remaining 12 days are paid by social security at about 82% of salary.

Parental leave: Each parent can take up to four months of parental leave until the child turns 12. This can be taken part-time. It's unpaid by the employer, but parents receive a small allowance from social security.

Public holidays 2025

Belgium has 10 national public holidays in 2025. If a holiday falls on a weekend, it's not moved to Monday. Employees just lose it.

Some regions have additional holidays. Flemish Community Day (July 11) applies in Flanders. French Community Day (September 27) applies in Wallonia. German Community Day (November 15) applies in the German-speaking community.

Mandatory benefits and contributions

You're required to contribute to Belgium's social security system. This covers health insurance, unemployment, and pensions. The total employer contribution is about 25% of gross salary.

Employer social security contributions:

Employees contribute about 13.07% of their gross salary to social security. You deduct this from their pay and remit it along with your contributions.

Holiday pay and 13th month: This is where Belgium gets expensive. You pay an extra month's salary as holiday pay (8.33% of annual salary). Many companies also pay a 13th month bonus in December. That's why you're paying salary 13.92 times per year.

Health insurance requirements

All employees must have health insurance through the Belgian social security system. Your social security contributions cover this. There's no separate health insurance premium to pay.

Employees can choose their own health insurance fund (mutuelle/ziekenfonds), but the coverage is standardized. Many companies offer supplementary private health insurance as a competitive benefit.

Meal vouchers and company cars

Meal vouchers aren't legally required, but they're so common they're practically expected. You can provide up to €8 per working day tax-free. Anything above that gets taxed as salary.

Company cars are also extremely popular due to favorable tax treatment. The employee pays a small benefit-in-kind tax. It's often cheaper than owning a car privately.

Common benefit mistakes

Missing the holiday pay deadline: Holiday pay must be paid by June 30th each year. Miss this deadline and you face penalties plus interest.

Incorrect vacation accrual: New employees don't get their full vacation entitlement immediately. They accrue 1.67 days per month worked. Many companies mess up the calculation for employees who start mid-year.

Forgetting regional holidays: Not accounting for regional holidays in Flanders, Wallonia, or the German-speaking community can lead to payroll errors and unhappy employees.

Underestimating total compensation costs: Between the 25% employer social security contributions, holiday pay, and 13th month bonuses, your total employment cost is about 45-50% higher than the gross salary.

Getting these benefits right requires local HR expertise (€60k+ annual salary), benefits administration software (€200+/month), and regular legal updates to stay compliant. Hire with Columbus handles all Belgian benefit administration and compliance for $179/month per employee. This includes holiday pay calculations, social security filings, and regional holiday tracking.

What are the compliance requirements?

Employment contracts must be in writing within 15 days of the employee's start date. There's no wiggle room here - verbal agreements don't cut it, and you can't wait until their first review to get the paperwork sorted.

The contract must be in French, Dutch, or German (depending on the region where your employee works). If you're hiring in Brussels, French or Dutch both work. Google Translate won't save you here - these need to be legally accurate translations.

Mandatory contract clauses

Every Belgian employment contract must include:

• Employee and employer identification details

• Job title and detailed description of duties

• Start date and contract duration (if fixed-term)

• Workplace location

• Salary amount and payment frequency

• Working hours and schedule

• Applicable collective bargaining agreement (if any)

• Notice period requirements

Miss any of these and the contract can be deemed invalid. That means you'll owe back payments, potential penalties, and face a messy legal situation.

Probation periods

Standard probation periods in Belgium depend on your employee's classification:

• Blue-collar workers: No probation period allowed

• White-collar workers: Up to 12 months maximum

• Management roles: Can extend beyond 12 months with specific justification

During probation, either party can terminate with shorter notice periods. But you still can't fire someone for discriminatory reasons or without following proper procedures.

Working time regulations

The standard work week is 38 hours across 5 days. Anything beyond that counts as overtime and must be compensated at 150% of regular pay for the first 11 overtime hours per week.

Employees need:

• Minimum 11 consecutive hours of rest between workdays

• At least 24 consecutive hours of rest per week

• 30-minute break for shifts longer than 6 hours

You must keep detailed records of all working hours. Labor inspectors can request these at any time, and missing records result in automatic fines starting at €2,400 per employee.

Notice periods by tenure

These are minimums. Collective bargaining agreements often require longer notice periods, especially for employer-initiated terminations.

Termination process

You can't just decide to let someone go and hand them a termination letter. Belgium requires either:

1. Mutual agreement: Both parties sign a termination agreement

2. Notice period: Follow the table above with proper written notice

3. Payment in lieu: Pay the equivalent salary instead of working the notice period

4. Just cause: Immediate termination only for serious misconduct (theft, violence, etc.)

For economic reasons (layoffs, restructuring), you need:

• 30-day consultation period with employee representatives

• Notification to regional employment office

• Proof that termination is economically justified

• Compliance with selection criteria (can't just pick who you don't like)

Severance pay requirements

Severance is only required for employer-initiated terminations without just cause. If you terminate during probation or for serious misconduct, no severance is owed.

Data protection compliance

Under GDPR, you must:

• Get explicit consent before processing personal data

• Maintain data processing records

• Implement security measures for employee data

• Allow employees to access, correct, or delete their data

• Report data breaches within 72 hours

Employee monitoring (emails, computer usage, location tracking) requires prior written consent and works council consultation. You can't just install monitoring software without disclosure.

Common compliance failures

Invalid employment contract: €3,000-€12,000 fine plus the contract becomes void. You'll owe back payments and face potential wrongful termination claims.

Wrong termination process: €5,000-€25,000 in compensation plus legal fees. Courts can order employee reinstatement, which creates an awkward situation for everyone.

Missing mandatory clauses: Contract deemed invalid, requiring back payments for any benefits or protections the employee should have received.

Improper dismissal without consultation: €10,000-€50,000 in compensation plus potential criminal charges for labor law violations.

GDPR violations: €20 million or 4% of global annual revenue (whichever is higher). Even small companies face minimum fines of €10,000 for basic violations.

Working time violations result in automatic fines of €2,400 per employee, plus you'll owe overtime back-pay at penalty rates.

Hire with Columbus ensures every contract includes all mandatory clauses in the correct language, follows proper termination procedures, and maintains GDPR compliance. We handle the consultation periods, government notifications, and documentation so you don't accidentally trigger these penalties.

What has changed recently?

Belgium made some significant updates to its employment laws in 2025 that directly impact how you hire and manage employees there.

The biggest change? Belgium expanded its right to disconnect law in March 2025. Employees now have stronger legal protections around after-hours contact, and companies face fines up to €25,000 for violations. You'll need clear policies about when (and when not) to contact Belgian employees outside work hours.

New digital nomad visa program

Belgium launched its digital nomad visa in January 2025, allowing remote workers from non-EU countries to work there for up to 12 months. The catch? Your employee still needs to pay Belgian taxes if they're working for a Belgian entity or spending more than 183 days in the country. This complicates payroll for companies with hybrid remote setups.

If you're using an EOR like Hire with Columbus, we handle the tax implications automatically and help you stay compliant with the new visa requirements.

Updated parental leave benefits

Belgium increased parental leave from 4 months to 5 months per parent as of July 2025. The additional month is paid at 82% of salary (up from 75% previously). This affects your budget planning if you're hiring employees who might take parental leave soon.

Changes to collective bargaining agreements

Several sector-wide collective bargaining agreements got updated in 2025, particularly in tech and professional services. The IT sector agreement now includes mandatory mental health days (2 per year) and increased meal voucher minimums to €9 per day.

Social security contribution adjustments

Belgium adjusted its social security rates in 2025. Employer contributions increased slightly to 25.2% (from 25% in 2024), while employee contributions stayed at 13.07%. The ceiling for contributions also rose to €70,000 annually.

Simplified work permit process

Good news for non-EU hires: Belgium streamlined its work permit process in 2025. Processing times dropped from 8-12 weeks to 4-6 weeks for most applications. They also introduced an online portal that actually works, which is honestly refreshing for Belgian bureaucracy.

The new system requires biometric data collection, so your new hires will need to visit a Belgian consulate or immigration office in person at least once during the process.