1. Belgian Labour Law New Measures on Labour Law
Brussels, 8th of March 2018

2. Content Employers’ social contributions
Benefits in kind & Cash for Car measure
Profit-sharing bonus
Posting of employees
Notice periods

3. Employer’s Social Contributions
Tax shift  makes Belgium more competitive
2016:
Reduction of the employer’s social contributions rate
Modification on the structural reduction
Review of the first hirings measure
2018:
New reduction of the employer’s social contributions rate
New change of the structural reduction
2019: Review of the structural reduction

4. Employer’s Social Contributions
2018: decrease of the social contributions rate
Almost all the employers (except non profit making sector …)
Basic rate: 30%  25%
+ sectorial specific contributions
+ legal holiday pay contributions for blue-collar workers

5. Employer’s Social Contributions
2018: review of the structural reduction
Removal of the lump sum of €438
Removal of the extra reduction for the high wages
Increase of the reduction for wages under €2,950

6. Employer’s Social Contributions
First hirings measure:
 Life time exemption on the basic employer’s social contribution ends on the 31 December 2020

7. Benefits in Kind IT tools for professional & private use
Social contributions & income tax
National Social Security Office and Tax Administration had different opinions
The value of those benefits has been reviewed since
the 1 January 2018
Have to be displayed on the payslips

8. Benefits in Kind Tool Until 31 December 2017 From 1 January 2018
PC & Laptop
€15 per month
€180 per year
€6 per month
€72 per year
I Pad
Real value
€3 per month
€36 per year
Per I Pad
Smartphone
Soc. Sec.
€12.50
per month
€150 per month
Taxation
Per smartphone
Phone subscription
€4 per month
€48 per year
Fixed or mobile Internet connection
€5 per month
€60 per year

9. Cash for Car Project – Not yet adopted
Enable employees to return their company car for a mobility allowance
Employer’s decision to offer this possibility
Employee has to apply for it (by written)
Conditions:
Employer: fleet for 36 months (except employer starter)
Employee: car for 3 months & 12 months within the last 36 months

10. Cash for Car How much? 20% of 6/7 of the car value + 20% if fuel card
Social treatment
No remuneration
Employer: no ordinary social contributions but a solidarity contribution
Employee: no social contribution

11. Cash for Car Fiscal treatment
Taxable advantage  Income tax is applicable
4% of 6/7 of the value of the car (taxable amount)
The amount of the allowance exceeding the taxable advantage is exempted

12. Cash for Car
Example
Company car (catalogue value of €37,500, CO2 emissions of 115 g/km, diesel engine, first registration on 1 January 2016) :
- Mobility allowance: € per month
- Employer’s social contributions: €45.27 per month
- income tax: €57.32 per month
- Net for the employee: € per month
- Cost for the employer: € per month (€ €45.27)

13. Profit-Sharing Bonus
Scheme for participation in company profits reviewed
Possibility to grant a bonus based on company’s distribuable profits
1 January 2018

14. Profit-Sharing Bonus What kind of bonus?
- Identical (each employee gets the same amount)
- By category of employees
- No individualization
- No replacement of an existing remuneration
Who can use this bonus scheme?
- Employer: subject to income tax or non-resident tax
- Employee: under employment relationship (subordination)

15. Profit-Sharing Bonus How much? How is it set up? - Employer’s decision
Max. 30% of the total payroll (gross basis)
How is it set up?
- Employer’s decision
- Not recurrent
- Identical bonus for each employee : G.A. decision
- Bonus by category: specific procedure (ex.:collective labour agreement)

16. Profit-Sharing Bonus Social treatment Tax treatment
- Employer: no social contributions
- Employee: 13.07%
Tax treatment
- Employer: non-deductible expense for corporate tax (29% in 2018)
- Employee: 7%

17. Posting of Employees European Directive (2014/67/EC)
Implementation into Belgian law
Act of 11 December 2016
Royal Decree of 14 September 2017

18. Posting of Employees Short assignment in Belgium (24 months)
Mandatory Belgian labour law provisions are applicable
Employee remains in the social security system of the country where he is employed
Certificate of coverage (A1 form)
Limosa declaration

19. Posting of Employees
Obligation for a foreign employer to appoint a liaison person (physical person)
No obligation to be a Belgian resident
The employer, an employee, anyone…
Acts as a contact person with the Belgian authorities
Holds the social & labour documents

20. Posting of Employees
Appointment of liaison person through the Limosa declaration
Person of liaison’s details & coordinates
His capacity
Nature of the services carried out in Belgium
Temporary work: accreditation number
Construction sector: comparable benefits in their home country as in Belgium
Etc.

21. Notice Periods 01/01/2014: harmonization of notice periods
trial period removed
01/01/2018: new notice periods

22. New Notice Periods Length of service Length of service
notice period till
< 3 months
2 weeks
3 months < 6 months
4 weeks
6 months < 9 months
6 weeks
9 months < 12 months
7 weeks
12 months < 15 months
8 weeks
15 months < 18 months
9 weeks
18 months < 21 months
10 weeks
21 months < 24 months
11 weeks
2 years < 3 years
12 weeks
3 years < 4 years
13 weeks
4 years < 5 years
15 weeks
as of 5 years
3 weeks per commenced year
20 years and 21 years
2 weeks per commenced year
as of 21 years
1 week per commenced year
Length of service
notice period from
< 3 months
1 weeks
3 months < 4 months
3 weeks
4 months < 5 months
4 weeks
5 months < 6 months
5 weeks
6 months < 9 months
6 weeks
9 months < 12 months
7 weeks …

23. Contact
Jinbao ZHANG International Social Advisor