Professional Employer Organization (PEO) in Belgium

What is a PEO? 

A PEO, or professional employer organization, is an outsourced service provider that completes human resources functions. These tasks include: 

• Payroll
• Compensation conversion
• Benefits packages and administration
• Labor law compliance 
• Employee contracts 
• Documentation

A PEO takes on the burden of these time-consuming tasks for startups, small businesses, and SMEs so you can focus on core business operations. Partnering with a PEO is a great way to scale your operations and reach new talent. 

A PEO can help you grow a global, remote team from over 160 countries, including Belgium. The PEO provider will make sure your workers are paid in Euros and offered competitive benefits packages. They also require all statutory and regulatory requirements so you don’t have to worry about misinterpreting employment laws. 

Are you wondering how Skuad could help your organization grow? Learn more about our services or contact a member of the team today to get all your questions answered.

What are the benefits of PEO services in Belgium? 

When you partner with a PEO in Belgium, you gain access to many tools, packages, and options that are only offered to larger corporations. A PEO is a valuable partner for ambitious companies that want to grow and expand. 

Recruit top talent from Belgium 

You want to hire the very best talent for your business, and sometimes that means broadening your horizons. Working with a PEO allows you to hire remote workers all over the world. 

Belgium has a talented community of eager job seekers looking for companies just like yours. This modern economy is overflowing with talent who can help grow your company. By working with a PEO, you gain access to this talent pool without having to pay the costly fees associated with establishing an entity in Belgium. 

Position your business as a global competitor 

Successful businesses have job seekers from all over the world vying for a position with them. Don’t you want the same for your organization? 

A PEO in Belgium will understand everything from tax contributions to employment laws. They’ll also understand what types of benefits packages locals are accustomed to so you can ensure the best of the best wants to work for your company. 

Eliminate unnecessary costs 

There are many expected, and unexpected, costs when hiring in a new country — if you don’t work with a PEO. Businesses that go it alone will have to establish a new entity, register the company, pay taxes, and hire attorneys to make sure everything is legal. 

What’s more, a PEO’s fees are just a fraction of the cost of putting together an entire human resources department. And the PEO would already be knowledgeable on the laws and requirements of Belgium hiring, so you wouldn’t have to worry about training them. 

Gain insight into new markets 

Is one of your company goals to expand globally one day? By working with a PEO now, you can gain valuable insight into Belgium markets that will help you succeed in the future. 

Interested in finding out more about working with Skuad? Book a demo today.

Avoid the need to set up a new entity in Belgium 

Working with a PEO allows you to avoid setting up a business in Belgium. The PEO will serve as the legal employer, meaning you avoid any legal liabilities of hiring globally. Establishing an entity in Belgium would also take months to complete all required steps. With a PEO, you could be hiring workers in Belgium in weeks — or days! 

You’ll be empowered to focus on team building and company growth when choosing to work with a PEO. You’ll gain all the benefits of having a global entity for a small chunk of the cost it would normally take. 

Increase cultural awareness 

When you work with global companies or clients, it’s important to understand cultural differences and the impact they make on business functions. You can navigate this a little easier by working with a PEO who will serve as your right hand to guide you through cultural nuances. 

For example, did you know punctuality is practically a virtue in Belgium? Or that you should be dressed in business attire for most interactions? 

Maintain compliance with statutory requirements in Belgium 

Belgium, like every other country, has its own laws and standards regarding workers. A typical workweek is 38 hours and overtime has complex guidelines. Anything over 38 hours is paid at 150% of normal wages. Daily hours are capped at 11 and the weekly maximum is 50 hours. 

If a worker is required to work on a Sunday or bank holiday, they are paid at 200% of the normal rate. 

When you work with a PEO like Skuad in Belgium, you outsource all the finer details of managing a team. We’ll worry about compliance and contracts, so you don’t need to. 

Here are some other facts about doing business in Belgium that you won’t need to concern yourself with, with Skuad by your side…

Payroll 

In Belgium, payroll is submitted on the 25th of each month. 

Leave 

• Belgian workers are entitled to 10 public holidays. If a holiday falls on a weekend day, they are allowed to use that day as a floating holiday and use it at any time throughout the year. 

• Paid time off is dependent on how many months the employee worked the year before. For a full year, employees are given 20 days of paid time off. There are complicated laws around how much is paid and what is required for specific industries. 

• Belgian employees are entitled to sick leave without a maximum amount of days, but a doctor’s note is required. Belgium laws require employees access to an additional 10 days of paid leave for various unforeseen circumstances. 

• Maternity leave is broken into prenatal and postnatal rest leave. Prenatal leave may start 6 weeks before the birth. Postnatal leave is at minimum 9 weeks following the birth of the child. 

• Paternity leave is for 15 days. These days can be split or taken any time within 4 months of the birth of the child. 

• It’s typical for Belgian companies to also offer unpaid childcare leave ranging from 4 to 40 months. There are also leaves for carers, adoption, and shared parental time off.

Don’t let Belgium’s leave rules leave you feeling lost. Any questions you’ve got, the Skuad team can answer.

Tax Contributions 

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

When it comes to Belgian’s social security contributions…

• The employer contributes ~28%.
• The employee contributes 13.07%.

Bonuses 

Most employers in Belgium give a 13th-month bonus. Some even give a 14th-month bonus. 

Performance-based profit-sharing programs and stock options are popular too.

What does it cost to build a team in Belgium?

The investment requires to build a team in Belgium will depend on the road you take to get there. 

You have two options: to incorporate a new entity in Belgium or work with a PEO.

Belgium company registration costs

Incorporating an entity in Belgium can be a lengthy process. First, you have to complete Belgium’s company registration process. This includes notarizing your Articles of Association, registering and publishing your new company’s status, and opening a Belgium bank account. 

From there, you consult with a lawyer to understand the Belgium corporate tax rate and related employment laws. There are strict labor laws and collective bargaining agreements businesses must abide by. 

Or you can take the much easier route and hire a PEO to handle all of this for you so you can focus on generating more revenue. 

Cost of a professional employer organization in Belgium

Hiring a PEO like Skuad will save you hours and thousands in costs. Skuad allows businesses to start hiring globally for free and you can cancel your account at any time.

Skuad has PEO services starting at $19 a month per employee. We also offer employer of record services starting at $199 per month, per employee. You can rest assured your company will remain compliant with local labor laws and attract top candidates with competitive compensation rates with either option you choose.

See how it works for yourself

At Skuad, we want you to be completely satisfied with our services! We offer services for PEO or employer of record in Belgium. Our services allow you to expand globally without navigating the extensive process of setting up a new company in another country. 

Book a free demo today to see how easy our platform is for businesses to hire, onboard, and pay global employees.