» The salary

The computation of the salary of an employee is governed by a variety of laws, regulations and collective agreements and will vary from business sector to business sector. Payroll agencies exist to assist in carrying out these tasks for a reasonable fee.
Salaries are usually negotiated on a monthly basis. Most collective agreements stipulate that an employee is entitled to a 13th month (100% of normal monthly salary), and double vacation pay (single pay equals to the normal monthly salary, the double amounts to about 89% of the monthly salary). Salaries are linked to the index of prices.

» Social security contributions 

Belgian social security legislation consists of specific regulations that provide for unemployment benefits, pensions, sickness and disability benefits, family and child allowances, industrial accidents and health care.

The payment of social security contributions is compulsory. Blue and white collar workers pay 13,07% of their salary, while employers pay between 32 and 38% of the gross salary varying from sector to sector. The employer's social security contributions are calculated on the gross salary, while the employer deducts the employee's contributions from the gross salary. These are remitted every three months by the employer to the National Social Security Agency. As indicated above pay-roll agencies exist to assist in this complex calculation and transfers.

Based on bilateral agreements, some non-EU residents may be exempt from Belgian social security contributions and can remain subject to the social security system of their country of origin for a limited period. Specific forms have to be provided to that effect and can be obtained from the National Social Security Agency.

» Benefits in kind

The employer can also remunerate the employee by other compensations better known as “benefits in kind". Most of these alternative forms of remuneration are more interesting from the tax point of view and allow a company to reduce its social security contributions. Benefits in kind can include:

• company cars, mobile phone, computer…
• group insurance, pension funds and stock options.

» Employment incentives

In addition to the federal measures that allow for a reduction of social contributions during a certain period of time, employers can also obtain grants at a regional level in Brussels.

More information about the employment incentives is available on Ecosubsibru, a website listing all grants abailable for Brussels based companies. This website has been developed by the Brussels Enterprise Agency.