Quick facts

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Belgium, located in Western Europe, is known for its highly developed economy, which is heavily reliant on services, trade, and manufacturing. The country enjoys a high standard of living, excellent health care, and a strong social security system. Belgium is also a central hub for international politics, with Brussels hosting major institutions such as the European Union and NATO. Employment in Belgium is regulated by labor laws, with collective labor agreements (CLA) playing a major role in shaping employment terms across industries.

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Employment Contracts

In Belgium, there are two main types of employment contracts:

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• Permanent (open-ended) contracts.
• Fixed-term contracts. The specific terms of these contracts often follow the rules set by the Collective Labor Agreement (CLA) JC 200.

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Probation Period

Since January 1, 2014, probationary periods are no longer allowed in newly signed employment contracts. However, as compensation, the notice period is reduced during the first three months of employment.

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Working Hours

The standard workweek in Belgium is 38-40 hours. Overtime compensation kicks in after 38 hours unless the employee is a senior executive. Overtime is compensated at 150% of normal pay or 200% for work on Sundays and public holidays. Employees are also entitled to at least one 24-hour rest period each week. Workdays are capped at 11 hours per day and 50 hours per week. Alternatively, employees may work 40 or 39 hours per week in exchange for 12 or 6 compensatory rest days, respectively, over a year.

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Vacation Days

Employees in Belgium are entitled to 20 days of paid vacation annually. Vacation is granted at the start of the year, based on the number of months worked the previous year. New employees who join in January must work a full year before being eligible for paid vacation. Unused vacation does not carry over to the next year.

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Sick Leave

Belgian employees are entitled to unlimited sick leave, provided that each instance is supported by a doctor's note. There is no cap on the number of sick leave days.

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Wages and Salary Payment

In Belgium, salaries are paid via bank transfer on the 25th of each month. The national minimum wage in 2022 is €1,658.23 per month (or €19,898 annually based on 12 payments). Some industries have higher minimum wages as per their CLA. Belgium's wages are automatically indexed each year according to the health index, to account for changes in the cost of living.

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Public Holidays

Belgium has 10 official public holidays each year:

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1. January 1: New Year's Day
2. April 18: Easter Monday (movable)
3. May 1: Labor Day
4. May 26: Ascension Day
5. June 6: Whit Monday
6. July 21: National Day
7. August 15: Assumption Day
8. November 1: All Saints Day
9. November 11: Armistice Day
10. December 25: Christmas Day

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If a holiday falls on a weekend, the employee gets a "floating holiday," which can be taken as a regular vacation day.

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Employer Taxes

The employer’s contribution to social security is set at 27% of gross wages. Employers are also responsible for filing work permit applications for non-EU nationals.

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Employee Taxes

Employees in Belgium contribute 13.07% of their gross salary to social security, with no cap. A special social security contribution ranging from €9.30 to €60.94 is also deducted from the net salary, and this amount is not tax-deductible. The 2022 tax brackets are:

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• 25% for income up to €13,540.
• 40% for income between €13,541 and €23,900.
• 45% for income between €23,901 and €41,360.
• 50% for income above €41,360.

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Notice Period

Notice periods in Belgium vary depending on the length of service:

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• For the first three months of service, the notice period is one week for resignation and two weeks for dismissal.
• By the 5th year of employment, notice periods increase to 7 weeks for resignation and 15 weeks for dismissal.
• The maximum notice period for resignation is 13 weeks, reached after 9 years of service.
• For dismissals, notice periods increase by three weeks for every year of service after five years, reaching 63 weeks after 21 years.

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The notice period starts on the Monday following notification. In case of dismissal, if an employee finds a new job, they may terminate their contract with a shorter "counter notice" period.

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Termination and Severance Pay

Belgium has a complex system for termination:

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• Employees with more than six months of seniority must be informed of the reason for their dismissal. If no explanation is provided, the employer may face a fine of two weeks' salary.
• An employee may challenge their dismissal in labor court if it is deemed "unjustified." In such cases, employees may claim compensation between 3 and 17 weeks' salary.
• If an employee commits a serious offense, such as theft or violence, the contract may be terminated without notice or severance pay.