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Belgium PEO: Benefits & Best Services in 2024

Ever dreamt of expanding your business to the heart of Europe, specifically Belgium? This dream can turn into a reality effortlessly with the help of a Belgium Professional Employer Organization (PEO). A Belgium PEO is your partner in growth, ensuring smooth sailing while you navigate the waters of hiring, compliance, and employee benefits in a new country.

Key Takeaways

  • Navigate Belgium’s labor market with a PEO for smooth entry and compliance.
  • Understand employment contracts, social security & benefits, salary indexation & bonuses in Belgium.
  • Leading Belgium PEOs include Horizons, People2.0, Remofirst, Remote and Deel. 

Navigating Belgium’s Labor Market with a PEO

Belgium’s labor market is teeming with opportunities. A Professional Employer Organization (PEO) in Belgium eases your entry by aiding in the hiring process, overseeing employment contracts, and handling social security and benefits. Imagine the ease of onboarding a new employee within 24 hours in a new country. Yes, it’s possible with a PEO.

Non-EU citizens who want to work in Belgium require a work permit. This must be applied for by the employer of the aspirant. The minimum monthly salary set by the government is €1,593.81, allowing for fair compensation for your employees.

Belgium Business Guides

Top 5 Belgium PEOs

  1. Horizons: With Horizons, global companies can hire in 180+ countries, including Belgium through their intuitive SaaS platform. With Belgium-based support on hand at any time of day, Horizons can ensure that your Belgium hiring and expansion proceeds smoothly. 
  2. People2.0: People2.0 is a global PEO and contractor hiring platform, with a strong reputation in Western Europe, including in Belgium. People2.0 is particularly useful for companies that seek to hire contractors as well as ongoing employees. 
  3. Remofirst: A new entrant to the global PEO market, Remofirst is one of the most cost-effective PEO solutions internationally, making them a good choice for startups looking to save money on their expansion. 
  4. Remote: Remote is an international PEO that hires employees exclusively through its network of wholly-owned entities. This makes Remote especially useful for any company hiring in Belgium and seeking to mitigate compliance risks.
  5. Deel: Deel is an international HR SaaS, providing PEO, EOR and global mobility services in Belgium and most other locations. Deel is especially useful for any company seeking to integrate PEO services with other HR and payroll apps. 

The Belgian Economy and Workforce

Belgium, characterized by its strong service sector, highly educated workforce, and business-friendly environment, is a prime spot for businesses seeking to expand. Some key features of Belgium’s economy include:

  • Strong service sector

  • Highly educated workforce

  • Business-friendly environment

  • Free-enterprise economy

  • Emphasis on the service sector, which forms a majority of the Gross Domestic Product

The country’s regulatory environment is transparent and efficient, fostering an environment conducive to trade and investment. Ranked 46th out of 190 economies in the World Bank Ease of Doing Business report 2020, Belgium is also the third most globalized nation worldwide according to the KOF Index of Globalization.

Service Sector Dominance

The service sector in Belgium shines brightly, marking its dominance in the country’s economic scenario. The pharmaceutical industry and the food and beverage industry are the most prominent services.

The service sector’s predominance is due to historical development, specialization, globalization, and government policies. In 2020, the service sector accounted for 91% of total employment in Brussels, while in Flanders and Wallonia, it represented 76% and 78.9% of total employment respectively.

A Hub for Talent

Belgium is a reservoir of talent, boasting a highly educated workforce ready to contribute to businesses. The literacy rate in Belgium is reported to be 99% for both males and females aged 15 years and above.

Belgium’s premier universities like Solvay Brussels School of Economics & Management and Vlerick Business School are known for their distinguished business degrees. In 2022, it is estimated that 53.1% of 30-34-year-olds in Belgium have a higher education diploma, providing a wealth of talent for businesses.

Essential PEO Services in Belgium

Engaging with a PEO in Belgium offers a range of benefits, including:

  • Payroll management

  • HR administration

  • Benefits administration

  • Tax and legal compliance

  • Staffing

  • Employee relations

  • Work permit and visa assistance

  • Risk management

Having a reliable partner to handle these tasks can greatly simplify your business operations in Belgium.

Imagine the comfort of knowing that the taxes are calculated correctly, remitted to the relevant authorities, and all the necessary paperwork is taken care of. This leaves businesses free to focus on their core operations and strategic initiatives.

Payroll and Tax Administration

Steering through the complexities of payroll and tax administration in Belgium can be simplified with a PEO. The PEO assumes the responsibility of calculating and deducting the appropriate amount of income tax from employee wages.

PEOs provide extensive tax administration services, including:

  • Managing critical HR duties such as payroll and contract administration

  • Ensuring tax compliance

  • Having a team of tax, legal, and compliance experts to assist with all aspects of tax administration.

Human Resources Support

A PEO’s role in HR support includes:

  • Payroll management

  • Compliance

  • Benefits administration

  • Compensation management

They provide comprehensive HR support services, acting as an experienced navigator for your voyage into the Belgian labor market.

PEOs manage the onboarding process with great efficiency, taking care of all related hurdles, including:

  • Payroll

  • Compensation and benefits

  • Tax filing

  • Termination of employment

This allows businesses to focus on their core operations and strategic initiatives.

Legal Entity Not Required

Imagine being able to hire employees in Belgium without the need to establish a local legal entity. An employer of record makes this possible by assuming the legal and administrative responsibilities of employing workers, including payroll, taxes, and compliance with local labor laws.

Not having a local legal entity in Belgium can present certain risks and challenges, including:

  • Limited protection of intellectual property rights

  • Compliance issues

  • Restricted access to local resources and support

  • Potential legal and operational risks

However, the advantages of utilizing a PEO far outweigh these risks.

Understanding Employee Leave in Belgium

Comprehending employee leave policies in Belgium is a significant aspect of workforce management. Employees in Belgium are eligible for 20 days of paid vacation leave, unlimited sick leave with a valid medical note, and maternity leave with an allowance.

PEOs help businesses navigate these regulations, ensuring that they comply with the law and also keep their employees satisfied. This is crucial in maintaining a healthy and productive workforce.

Sick Leave Regulations

Belgium offers unlimited sick leave for employees, but the rules differ for blue-collar and white-collar workers. To avail this, a doctor’s note may be required. White-collar workers can receive up to 30 days of sick leave at 100 percent pay, while blue-collar workers are eligible for 30 days of sick leave with partial salary compensation.

The unlimited sick leave policy enables employees to receive paid sick leave up to 182 consecutive calendar days, with a maximum of 240 days per annum. This ensures that the health and wellness of employees are prioritized.

Maternity and Paternity Leave Entitlements

Belgium provides comprehensive maternity and paternity leave entitlements for its employees. Female employees are entitled to 15 weeks of maternity leave, with 6 weeks of paid leave prior to the expected date of childbirth.

Male employees are entitled to 10 days of paternity leave. It must be taken within four months of the birth of their child. This ensures that both parents can spend quality time with their newborn child.

PEO’s Role in Employee Compensation and Bonuses

A PEO holds a central role in overseeing employee compensation and bonuses. They assist with salary indexation, ensuring that employees receive apt adjustments based on inflation and preserve their purchasing power. They also manage bonuses, including the 13th and 14th-month payments that are common in Belgium.

PEOs oversee the entire process of bonus management, including computing bonus amounts, ensuring compliance with applicable laws and regulations, and distributing bonuses to employees. This ensures that employees are rewarded for their hard work and dedication.

Salary Indexation and Bonuses

Salary indexation in Belgium is a practice of adjusting salaries annually according to a percentage determined by the Consumer Price Index (CPI) or inflation rate. This ensures that wages remain in line with the increasing cost of living.

Bonuses are an extra form of remuneration for employees in Belgium. It is typical for employers to provide a 13th-month bonus to their employees, with some even offering an additional half of a 14th-month’s pay at the end of the year. These payments are a testament to the employee’s commitment and hard work throughout the year.

Additional Perks and Benefits

In addition to salary and bonuses, employers in Belgium also offer supplementary benefits. These include health and life insurance, pension plans, income protection, and tuition reimbursement.

A PEO can provide valuable insights on these supplementary benefits, helping businesses to understand the best perks to offer their employees. After all, a content and satisfied workforce is a productive workforce.

Termination and Severance: A PEO’s Guidance

The process of termination and severance of employees can be intricate. Yet, with the aid of a PEO, businesses receive guidance to traverse this process, securing compliance with local laws.

The legal requirements for employee termination in Belgium include providing written notice, specifying the commencement date and duration of the notice period. There is no obligatory severance pay unless specified in the company’s bylaws.

Why Choose a Belgium PEO?

Choosing a Belgium PEO is comparable to choosing an ideal partner for your business expansion. A PEO eases business expansion, optimizes HR processes, and ensures alignment with local regulations, thus empowering businesses to focus on growth and success.

They stay up-to-date with the latest changes in labor laws, tax regulations, and employment practices in Belgium, handle all the necessary paperwork, and provide guidance on cultural integration and employee relations. By partnering with a Belgium PEO, international businesses can streamline their expansion process and focus on their core operations while leaving the legal and regulatory aspects to the experts.

Summary

In conclusion, a Belgium PEO is an essential partner for businesses looking to expand in Belgium. From navigating the labor market, understanding the economy and workforce, providing essential services, understanding employee leave, managing compensation and bonuses, to guiding through termination and severance, a PEO simplifies and streamlines the process. So why wait? Embark on your Belgium business journey with a reliable PEO today!

FAQ

A Belgium operates as your co-employer in Belgium. They take care of payroll and HR compliance, leaving you to focus on core business. 

A Belgium PEO can save your business money by carrying out HR and payroll tasks more efficiently than you could internally. They also mean that you may not need to set up a Belgium-based entity. 

A Belgium PEO acts as the co-employer of your Belgian workforce, whereas a Belgium Employer of Record (EOR) becomes the legal employer of your team in Belgium. Often, these terms are used interchangeably. 

At RemotePad, Lech draws on his professional experience to write about employment taxes and payroll (both remote, and in-office). Lech holds a Bachelors’ degree from the University of Kent, a Master of Arts (MA) from Kings College London, and professional payroll and tax qualifications. He has 20 years experience advising on all manner of tax and business planning matters.

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