PEO in Belgium
Hire Globally, Pay Locally, Expand Effortlessly
INS Global operates as a local partner providing international companies with global Human Resources outsourcing services. By using our PEO, your company can establish itself, hire employees, and begin operations in over 80 countries around the globe, all without the traditional hassles that go along with global expansion.
A Professional Employer Organization (PEO), often related to an Employer of Record (EOR), is a local business partner for international companies desiring to outsource their HR services and expand their operations into new territories and countries without wanting to establish a separate legal entity.
A PEO (Professional Employer Organization) is a global mobility partner that ensures total legal compliance assurance in a target market for all overseas employees. A PEO in Belgium gives companies the local expertise needed global expansion. Hire and provide HR services for employees in as little as 48h with INS Global
An EOR (Employer of Record) is a third-party provider of employment outsourcing services that acts as an employer for tax and HR administrative purposes. INS Global’s EOR in Belgium allows companies to securely and cost-effectively hire and manage employees overseas in less than 48 hours.
PEOs can be used to legally employ overseas staff, manage employee services, and handle payroll. This saves your company time and money without the complications of going through every local procedure required to begin on your own.
PEO in Belgium - Summary
The Many Benefits of using a Professional Employer Organization
Assured Legal Compliance
The knowledge of local legal and administrative procedures provides your business with guaranteed compliance assurance throughout the entire process
Reduced Cost And Time
Issues created through misunderstanding best practices and local regulations can lead to a surprisingly high occurrence of fees and fines. A PEO’s local experts can minimize and avoid these errors.
Heightened Focus on Company Growth
Through the provision of many HR outsourcing services like headhunting, payroll outsourcing, and contractor management, a PEO allows you to accelerate your market entry and increase growth.
Fast Market Entry
Time for Company Incorporation in Belgium: 4-12 months
Time to establish a PEO relationship in Belgium: 2-5 days
One Contact for Everything
A PEO covers all the required aspects of HR services and streamlines these into a single point of contact.
Why a PEO is More Advantageous Than Company Incorporation
Incorporating your company in a new foreign market is complicated and time-consuming, requiring a legal and physical presence to begin operations. A PEO allows you to avoid these issues by operating as a legal intermediary for essential HR services.
Saves time
Saves money
Avoids potential administrative or legal pitfalls
Makes the most of local resources and expertise
Testimonial
TERAO ASIA
Manuel Ramos
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
How Does Our PEO in Belgium Operate?
INS Global’s Belgium PEO can be used to manage your employee recruitment or assignment needs in 4 comprehensive steps:
We meet with you to understand your requirements and formulate a plan that will best fulfill your needs.
Our professionals will provide a legal entity you can use to bring in staff to begin operating in Belgium.
We take on all of the administrative and legal aspects of HR compliance in Belgium, including hiring and paying your staff
Your staff can continue day-to-day operations and keep working towards your company’s success in the Belgian market while we manage all necessary HR services
PEOs (Professional Employer Organization) vs. EORs (Employer of Record)
Once you’ve decided to expand into the Belgian market and wish to make the most of a PEO agreement, it’s helpful to understand how PEOs can differ from EORs in order to choose the one that best fits your business needs:
- A PEO provides HR outsourcing services to employees of other companies expanding globally.
- The services that can be provided include tax compliance, payroll outsourcing management, and regulatory assurance, among others.
- An EOR is a company that acts like a PEO while also legally and officially hiring employees on behalf of their clients.
- In addition to services provided by a PEO, an EOR is responsible for all liabilities associated with onboarding and employment.
- Under a PEO agreement, the contract will remain between your company and the employee.
- In an EOR agreement, the contract is directed by your company but made between the EOR and your employee.
INS Global offers both PEO and Employer of Record services in Belgium. Contact our team of experts today, or read this article to learn more about the specifics of these two services.
Labor Law in Belgium
Employment Contracts in Belgium
An employment contract in Belgium should contain a description of the employee’s duties, relevant information about the nature of the role, work conditions, pay, and other special clauses like confidentiality and non-compete clauses.
Any changes made to a contract without the employee’s written consent will result in that contract being null and void.
There are multiple types of employment contracts in Belgium. These contracts consist of: fixed type, student employment, replacement contract, and full-time employment.
Due to the multilingual nature of the Belgian market, contracts must be stated in the local language for the area of the company’s headquarters. The contract’s language should be either French, Dutch, or German.
Working Hours and Overtime in Belgium
Working hours in Belgium should not exceed 8 hours per day. In cases where it is necessary for more work than stipulated above, the employee must receive compensatory rest time and payment of 150% salary for overtime.
Annual Leave and Public Holidays in Belgium
Full-time employees in Belgium are entitled to 4 weeks of paid annual leave in the year following a full year of service.
In some particular cases, such as with young or elderly workers, the amount of leave allowed or leave pay may differ.
There are 10 days of paid public holidays per year in Belgium. If these days fall on a weekend, the employee can take an extra day of annual leave.
Sick Leave in Belgium
The employer is responsible for paying for the first 30 days of sick leave.
After this, employees are eligible for a sick leave payment given via social security, subject to providing medical proof of illness.
Maternity and Paternity Leave in Belgium
Maternity leave in Belgium is 15 weeks, paid for by social security at 82% for the first 30 days and 75% for time after this. This pay is subject to a maximum daily amount.
Paternity leave is 10 days, paid at 82%. The first 3 days are expected to be paid by the employer.
Paid Educational Leave
Due to Belgium’s particular language make-up, employees can take between 10-15 days of paid educational leave. This is for cases in which they are enrolled in a government-recognized language course in either French or Dutch.
Tax Law and Social Security Contributions in Belgium
Corporate tax in Belgium is typically 25%. This rate is appliable to both domestic companies and foreign companies.
As defined by the Code of Companies and Associates, smaller and medium-sized corporations are allowed to profit from a reduced rate of only 20% for the first bracket of income up to EUR 100,000 of profit.
Personal income tax is paid on a progressive scale at a national (from 25-50%) and local communal level (at an average of 7%).
Social security contributes to all forms of social insurance for workers in Belgium, such as medical, employment, and pension insurance. Employees are expected to contribute 13.07% of their salary, and employers must expect to pay around 27% of an employee’s standard salary towards social security contributions.
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FAQs
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
procedures, etc.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.