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In Belgium, salary levels are determined by collective bargaining, not by the
law or by rules issued by the State. Collective agreements vary according to
sector and job. The agreements apply to all workers. It has happened that the
law has imposed limits on pay rises in order to preserve the international
competitiveness of Belgium. Wages are linked to standards, and there are fixed
minimum wages.
The Social Acts Inspectorate (Inspection des lois sociales)
monitors these agreements to protect employees. Trade unions and the Internet
can provide information on wages and other matters concerning labour law and
contracts of employment. The public labour services will provide you with the
addresses of trade unions. Wages are expressed as gross salaries per hour or per
month (occasionally per 28 days).
A statistical survey conducted in November 2008 by the Directorate-General
for statistics and economic information of the public federal economic service
showed that:
- 10% of wage-earners earn a maximum of 1,701 per month, gross
- 10% of wage-earners earn at least 4,109 per month, gross
Company managers earn the most and home helps and maintenance personnel the
least. The petrochemicals industry is the best-paid sector of the Belgian
economy. Hairdresser, cleaners and beauticians are the worst-paid.
Working in Brussels affords the best opportunities for a well-paid job.
People with better qualifications earn more.
There are two types of deductions on gross income for employees: the social
security contribution, and wage tax. The social security contribution is always
13.07 percent of the total income for everyone. To obtain the net amount (cash
in your pocket), you must deduct the social security contribution and income
tax, the amount of which varies according to family situation (depending on
whether or not the spouse works and how many children there are.) Note: child
benefit is a nominative amount that is paid independently of other information.
It is not taxed. The amount of child benefit depends on several factors: family
situation, number of children, etc.
Taxpayers are entitled to a tax-free allowance: this means that part of the
taxable income is not in fact taxed. If the income exceeds the tax-free
allowance, it is taxed. Taxation is progressive, which means that the percentage
of tax rises as the income increases. The tax table consists of five income
brackets and hence five taxation brackets.
For the 2008 tax year (income from 2007), the brackets are as follows:
- Taxation rate of 25% for the 1st income bracket up to 7,420 net per
year, taxable
- 30% for the 2nd bracket (from 7,420 to 10,570)
- 40% for the 3rd bracket (from 10,570 to 17,610)
- 45% for the 4th bracket (from 17,610 to 32,270)
- 50% for the 5th and last bracket (portion of income exceeding 32,270)
The difference between the income tax and the tax on the tax-free allowance
does not represent the amount of tax owed. In fact, the law provides for various
reductions and surcharges depending on the type of income, expenditure during
the taxable period, elements that may reduce the amount of taxation, such as
pension savings schemes, etc. To find out more, speak to a specialist (tax
authorities, bank, tax adviser, etc.).
Grounds for paying tax in Belgium include: residence in Belgium, you work in
Belgium (not for cross-border workers from France and Germany), are seconded to
Belgium and exceed the limit of 183 days. Discuss your personal situation with
the tax service where you live or work.
The tax-free allowance depends on the family situation.
Are you working for a short period? In this case check whether you might fall
within a special tax scheme, e.g. for students. During the fruit-picking season,
ordinary tax rates are used, but with a reduced social security contribution per
day.
The procedure for declaring tax, if you are resident in Belgium, is as
follows:
Anybody who has a residence in Belgium is assessed for tax purposes. As a rule,
tax returns have to be submitted to the Ministry of Finance for your place of
residence in the year following the year worked. One year later, a timely and
valid assessment is produced before the end of June. If you live in Belgium, you
will also pay local taxes. There are two types: the additional municipal taxes
and the purely municipal taxes. They vary from place to place.
Each country has its own double-tax treaty with Belgium. This is of interest
if your place of residence is elsewhere, you are a cross-border worker from
France or Germany or you are seconded to Belgium.
For any more detailed question relating to your tax situation (reimbursement
of taxes in case of expatriation to another EFTA country, for example), do not
hesitate to contact the Union of
French-speaking Belgians abroad (Union francophone des belges ΰ lιtranger),
or Flemish-speaking Belgians in the world
(vlamingen in de wereld).
Text last edited on: 06/2009
Source: European Union
© European Communities, 1995-2009
Reproduction is authorised.
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