Running Payroll in Belgium

Processing payroll in Belgium presents unique challenges for international employers. The country’s complex legal and administrative framework, combined with the use of multiple official languages at the regional level, can lead to communication barriers and potential delays when interacting with local authorities. Additionally, the intricacies of Belgian payroll regulations make compliance particularly demanding.

One key aspect of Belgium's payroll system is the variability in employer contributions to social security. These contributions can fluctuate significantly based on several factors, including company size, industry-specific agreements, and the employee's individual status. Navigating these nuances requires a thorough understanding of both federal and regional tax obligations to ensure accurate and timely payroll processing.

Before processing payroll in Belgium, employers must complete several administrative steps:

• Register with the National Social Security Office (NSSO): Employers must register as an employer with the NSSO, responsible for collecting social security contributions. This registration is done via the online service "WIDE".

• Obtain Industrial Accident Insurance: It is legally required for employers to take out occupational accident insurance for their employees. The coverage must commence on or before the first working day of the company's first employee.

• Register with the Local Tax Authority: To withhold income tax from employees' wages, employers must register with the local tax authority. This registration is necessary to remit the withheld taxes appropriately.

• Submit DIMONA Declarations: Employers are required to file an electronic immediate declaration (DIMONA) for each employee upon hiring and termination. This declaration informs the NSSO about the employment status of individuals and is mandatory for all employers in all sectors.

Once registered with the social security and tax authorities, employers can proceed with payroll processing.

International employers are not legally obligated to establish a local legal entity to hire and process payroll in Belgium. However, they must fulfill the same registration and declaration requirements as local employers. This can be achieved by appointing a local representative or collaborating with a local payroll provider.

Payments to Belgian authorities can be made from a foreign bank account, provided all registration and compliance requirements are met.

Belgium maintains a comprehensive social security system funded by contributions from both employers and employees. This system ensures automatic coverage for all employees, offering extensive benefits such as pensions, healthcare, invalidity, unemployment, and family allowances. Income tax in Belgium is progressive, with rates ranging from 25% to 50% (see table below for details). The top rate of 50% applies to the highest income brackets.

Tax Considerations

Belgian residents are subject to taxation on their worldwide income, while non-residents are taxed only on income earned within Belgium. However, the tax rates for residents and non-residents are identical.

Belgian employment income is taxed at four progressive rates, ranging from a basic 25% rate to a top rate of 50%. There is a personal tax-free allowance of EUR 10,910 (valid for 2025). The personal tax exemption increases if the employee has children. Work-related as well as certain other expenses can also be deducted.

In addition to national income tax, residents also have to pay communal taxes which range from 0% to 9% of the tax amount they owe. Residents have to pay the rate set by the municipality they live in. Non-residents liable for Belgian income tax pay a 7% flat rate.

In 2021, the Belgian government introduced a new tax regime for expats under which employees and directors coming to Belgium to work can receive a tax-free reimbursement of certain costs related to their work in Belgium amounting to up to 30% of their normal pay (capped at EUR 90,000). The new tax regime has entered into force in January 2022.

Tax Withholding and Reporting 

Employers in Belgium bear significant responsibilities concerning the income tax of their employees. It is incumbent upon the employer to accurately calculate and withhold the appropriate amount of income tax from employee wages and remit these amounts to the competent tax authority. Tax payments need to be made within 15 days following the end of the reporting period. For monthly payments, the deadline is the 15th of the following month.

Payments to the tax authority must be accompanied by a monthly tax return, which must detail the taxable income and the amount of income tax withheld. In addition to the monthly tax returns, employers are also required to prepare an annual tax slip for each employee, which must be sent to both the tax authority and the employee.

With the information from their annual tax slip, employees are then required to file their personal tax return. The deadline for filing is 30 June of the following year. It is noteworthy that married employees (or those officially living together) are required to file a joint tax return, although their income is taxed separately.

The tax year in Belgium runs from 1 January to 31 December.

Social Security Contributions

Apart from income tax, the only payroll tax employers in Belgium need to withhold from their employees' salaries is the employee's share of social security contributions, which generally amounts to 13.07% (basic contribution rate, with no ceiling). However, there are differences between white-collar employees and blue-collar employees with regard to the calculation base for the social contributions.

For blue-collar employees, social security contributions are calculated based on 108% of their normal salary. There is also a monthly special social security contribution of between EUR 9.30 and EUR 60.94, which must be withheld together with the regular contributions.

For white-collar employees, the base employer contribution is approximately 25%. However, additional contributions may apply depending on the sector and specific circumstances, leading to a total employer contribution that can range from 27% to 28%.

For blue-collar employees, employers must further contribute to a separate Holiday Pay Fund at a rate of 5.57%, plus make an annual payment amounting to 10.27% of the employee’s gross salary by 30 April. Premiums for the employer’s work accident insurance are collected directly by the insurer and are not included in the estimates above.

The withheld amounts must be paid to Social Security either on a quarterly basis or in the form of monthly installments – in any case, social security contributions have to be withheld every month. It is mandatory to file an electronic social security declaration once every quarter, regardless of whether payments are made monthly or quarterly. This declaration is called the DmfA (Déclaration Multifonctionnelle), and the deadline for submitting the declaration is the last day of the month following the quarter (i.e., 30 April for the first quarter of the year).

Employees in Belgium are entitled to various benefits. These include:

• Annual leave and public holidays: Employees are entitled to four weeks of paid annual leave per year, equivalent to 20 working days for those on a five-day workweek. They are also entitled to holiday pay in addition to their regular salary. Additionally, there are 10 statutory public holidays annually.

• Maternity leave: Female employees are entitled to 15 weeks of maternity leave.

• Paternity leave: Fathers and co-parents are entitled to 20 days of birth leave.

• Parental leave: Each parent is entitled to four months of parental leave per child.

• Sick leave: For white-collar employees, employers are required to pay 100% of the salary during the first 30 days of illness. For blue-collar employees, the employer pays 100% of the salary for the first seven days, followed by 85.88% for the next seven days. After this period, the health insurance fund provides sickness benefits.

For more information on employee benefits and other employment requirements in Belgium (including severance pay and termination procedures), check out our Global Hiring Guide.

In Belgium, minimum wages are primarily established through collective labour agreements (CLAs) negotiated at the sectoral level. These agreements consider factors such as the industry sector, employee qualifications, age, and seniority. While there isn't a statutory national minimum wage, a guaranteed average minimum monthly income applies to private-sector employees over 18 years old. As of February 2025, the minimum monthly income is set at €2,111.89 per month.

Employees are entitled to overtime pay for hours worked beyond the standard working hours. The compensation rates are as follows:​

• 50% additional pay for overtime hours worked during weekdays and Saturdays.

• 100% additional pay for overtime hours worked on Sundays and public holidays.

While not mandated by law, many collective labour agreements in Belgium stipulate the payment of a 13th-month salary. This bonus is typically paid in December and is subject to taxation and social security contributions.

In Belgium, payroll is typically processed on a monthly basis. Employees must receive their salary payments accompanied by a detailed payslip, which can be provided either in paper form or digitally. ​Employers are required to maintain comprehensive payroll records for each employee. These records should include all relevant details pertaining to the employee's work and wages. It is mandatory to retain these payroll records for a period of 10 years.