Employer of Record (EOR) in Belgium
Employer of Record (EOR) in Belgium allows businesses to hire employees without establishing a local subsidiary. Belgium has a workforce of about 5.3 million people, known for high skill levels in technology, pharmaceuticals, engineering, logistics, and finance. However, Belgium’s employment laws are complex, with strict labor protections, multilingual documentation, and high employer social contributions. Many businesses choose EOR services in Belgium to manage employment contracts, payroll, compliance with social security, and tax obligations. EOR ensures quick entry into the Belgian market while reducing legal risks and administrative challenges.
About Belgium
Belgium, located in Western Europe, is strategically positioned at the heart of the European Union. It is home to Brussels, the EU’s administrative capital, and has one of the most open economies in Europe. Belgium is well known for its strong transport infrastructure, making it a hub for trade and logistics across Europe.
The country has a highly educated and multilingual workforce, with French, Dutch, and German as official languages. Its economy is diverse, with strong sectors in chemicals, pharmaceuticals, advanced manufacturing, IT, banking, and logistics. Belgium also plays a critical role in international diplomacy and global business, hosting NATO and numerous multinational corporations.
Despite a high tax and social contribution system, Belgium offers access to a skilled labor force, advanced infrastructure, and proximity to major European markets. These advantages make Belgium a strong destination for global hiring through EOR services.
Employment Terms and Regulations
Types of Contracts
- Permanent contracts (unlimited duration)
- Fixed-term contracts
- Temporary or agency contracts
- Part-time contracts
Job Titles
- Software Engineer, HR Manager, Financial Analyst, Logistics Coordinator, Biotech Researcher
Working Hours
- Standard: 38 hours per week
- Maximum: 8 hours/day, 40 hours/week (with overtime regulations)
Minimum Wage (2025)
- €2,029 per month (national minimum wage, adjusted yearly)
Probation Period
Not generally allowed for most contracts; exceptions apply for temporary or student contracts
Taxation and Contributions
- Employers must withhold employee income tax at source (progressive rates 25%–50%)
- Social security contributions are high and cover healthcare, pensions, unemployment, and family allowances
Types of Leave
Annual Leave:
20 days (for a full-time 5-day workweek)
Public Holidays:
10 days per year
Maternity Leave:
15 weeks
Paternity Leave:
20 days
Sick Leave:
Paid by employer (first 30 days), then by social security
Employee Benefits
- Mandatory social security (pension, healthcare, unemployment, family allowance)
- Meal vouchers (common)
- Company car (frequent in Belgium)
- Group insurance (pension supplements, health plans)
Termination Process
- Notice period depends on seniority and length of service (from 1 week to several months)
- Dismissals must follow strict legal procedures
- Severance pay may apply if notice not respected
Employer Taxes
Social Security Contributions (Employer):
~25% of gross salary
Additional Sectoral Contributions:
May apply depending on industry
Total Employer Taxes: Around 25%–30% of gross salary
EMPLOYER TAXES
25%–30% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
