PEO Belgium

World Bank Ease of Doing Business Ranking

• DB Rank – 46
• DB Score – 75.0

Rankings on Doing Business topics – Belgium

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Global PEO in Belgium

Belgium is an enticing country for professional employer organizations (PEOs) due to its favorable business environment and robust labor market. Nestled in the heart of Europe, Belgium offers access to a highly skilled and multilingual workforce, making it an attractive destination for companies seeking to expand their operations internationally. With a well-developed infrastructure, advanced technological capabilities, and a business-friendly legal framework, the country provides a solid foundation for PEOs to support their clients in entering the European market seamlessly. Additionally, Belgium’s social security system ensures that employees receive comprehensive benefits, offering a high level of protection and job security. As a PEO country, Belgium exemplifies a harmonious blend of a thriving economy, skilled workforce, and attractive work-life balance, making it an ideal choice for companies looking to establish a presence in Europe and beyond.

What Is a PEO?

A PEO, or Professional Employer Organization, is a company that provides a range of HR and payroll services to small and medium-sized businesses. These services can include employee benefits, payroll, compliance with labor laws, and recruiting and training.

PEOs work by entering into a co-employment agreement with the businesses they serve. In this arrangement, the PEO becomes the employer of record for the business’s employees, taking on responsibilities such as payroll, tax withholding, and employee benefits. The business, however, retains control over its day-to-day operations and the supervision of its employees.

PEOs can help businesses streamline their HR and payroll processes, reduce costs, and free up time and resources to focus on their core business activities. They can also provide access to a range of benefits and resources that small businesses may not be able to afford or manage on their own.

PEOs are also understood as employer of record / EOR at times.

Belgium – Country Overview

Belgium has a free-enterprise economy and the majority of the GDP is generated by the service sector. Trade is also crucial to Belgian economy, and total value of exports and imports equals 167% of GDP.

According to the KOF Index of Globalization, which measures three dimensions of globalization: social, economic, and political, Belgium is the 3rd most globalized country in the world.

Belgium’s open economy offers a business friendly environment and now, setting up a business in Belgium takes less than 5 days. The overall regulatory environment is transparent and efficient. As a rule, the Belgian authorities are anti-protectionist and try maintaining a conducive climate for trade and investment.

Capital City

Brussels

Currency

Euro

Principal Language

Dutch, French, German

Government

Federal parliamentary democracy under a constitutional monarchy

Other Major Cities

Brussels, Antwerp, Ghent, Charleroi

Employment Contracts in Belgium

It is not mandatory to have written employment contracts in Belgium. Though when applied, a written employment contract, be it for part-time or full-time employees, must unequivocally specify the employment terms. Contracts can be open-ended or fixed term. Fixed-term contracts of at least 3 months can be renewed successively for not more than 4 times over a period of 2 years. These contracts can also be renewed for at least 6 months over a period of 3 years. Probationary periods are not allowed. Employment contracts and employment-related documents addressed to employees (also called social documents) are drafted depending on the work site location:

Brussels region

Employment contracts must be drafted in French or Dutch, depending on an employee’s mother tongue. Documents drafted in other languages can be replaced with a translation in the required language.

Flemish region

Employment contracts must be drafted in Dutch regardless of the employee’s mother tongue. Documents prepared in other languages are deemed void.

Walloon region

Employment contracts must be drafted in French. Documents prepared in other languages are deemed void but can be replaced with a translation in French.

Working Hours in Belgium

The maximum permissible work hours in a day is 8 hours and 38 hours in a week. Night work or work done between 8 p.m. and 6 a.m. is generally prohibited. But, all these limitations are subject to exceptions.

Employees are entitled to a rest period of a minimum 15 minutes after 6 hours of work each day. Sunday is a compulsory day of rest, but if employees work on a Sunday, they are entitled to compensatory time off, which is usually taken in no more than 6 days after the Sunday worked. Employees are also entitled to take at least 11 hours of rest each day, which is aggregated with the Sunday to provide a break of at least 35 hours every week.

Employee Leave in Belgium

Holidays

Employees are entitled to the following 10 national holidays in a year:

• Jan. 1: New Year’s Day
• Easter Monday
• May 1: Labor Day
• Ascension Day: 6th Thursday after Easter
• Whit Monday: 7th Monday after Easter
• July 21: National Holiday
• Aug. 15: Assumption Day
• Nov. 1: All Saints’ Day
• Nov. 11: Armistice Day
• Dec. 25: Christmas Day

Employees who work on a holiday are entitled to both overtime pay and compensatory time off.

Maternity Leave

A female employee can take 6 weeks of paid maternity leave immediately before the expected date of childbirth or 8 weeks in case the employee is expecting more than 1 child. The maternity leave must be taken at least within 7 days from the due date. If the employee doesn’t take the available maternity leave before childbirth, post-childbirth leave can be extended by the remainder of the leave.

Overall maternity leaves are for 15 weeks:

• 6 weeks Prior Birth
• 9 weeks Post Birth

If more than 1 child is expected or complications occur during childbirth, maternity leave may be extended to 24 weeks.

Paternity Leave

A father can take 10 days’ paid paternity leave within 4 months of the childbirth. The initial 3 days of leave are paid by the employer and the rest by social security. A father can also take the mother’s remaining postnatal leave to care for the child in case the mother is hospitalized or dies during maternity leave.

Sick Leave

The extent of sick leave is based on whether the employee is a white-collar worker or blue-collar worker.

Blue-collar workers

Blue-collar workers who have worked with an employer for a minimum of 30 days prior to an injury or illness are entitled to 30 days of sick leave with partial pay.

White-collar workers

White-collar workers are entitled to take a maximum of 30 days of sick leave at 100 percent pay. Extra sick leave benefits are available to employees if workers suffer a new injury or illness within 14 days of returning to work from a previous injury or illness.

Employees are entitled to sick leave and there is no maximum number of days; however each incidence must be accompanied by a doctor’s note (180 days in some of the Area- CBA Applied)

Taxation

An employee’s income tax tiers in Belgium are:

• 25% up to €13,440 
• 40% for €13,440 – €23,720 
• 45% for €23,720 – €41,060
• 50% for €41,060 and above

Employee Benefits in Belgium

Belgium’s mandatory social security system is administered by the National Social Security Office (NSSO), and both employees and employers contribute to the system. Social Security benefits include workers’ compensation, health and disability insurance, family allowances, old-age and survivors’ benefits, and unemployment insurance.

Health Insurance

Health insurance covers hospitalization, medicine, maternity care, general and specialist care, nursing, rehabilitation, medicine, dental care, allowances and transportation for the insured and the dependents of the insured.

Disability Insurance

Employees who suffer a disability that results in a loss of a minimum of two-thirds of their earning capacity are entitled to a disability pension after 1 year of disability. The minimum and maximum of the daily pension depends on the date the disability began, if the insured has dependents, lives alone or cohabits.

Family Allowances

Employees are entitled to a family allowance for their children, partners’ children, dependent siblings, or other children in their household. The family allowance for a child ceases on the last day of August in the year the child turns 18. This allowance is extended to age 21 for a disabled child and to 25 for a child who is an apprentice, a student, or a jobseeker who has been registered with the NSSO for less than 270 days.

Old-age Benefits

Employees who have made contributions for at least 45 years are entitled to old-age benefits at the age of 65. The age will be raised to 66 in 2025 and 67 in 2030. Certain workers including seafarers, civil aviation flight crews, and miners can retire earlier subject to certain conditions. Early pension is available to employees aged 63 with at least 41 years of coverage. The age requirement is decreased for specific workers with longer careers.