All you need to know about Belgian payroll Presented by Kathy - - PowerPoint PPT Presentation

All you need to know about Belgian payroll

Presented by Kathy Soulsby

Agenda:

• 1. Running a payroll
• 2. Rights and Responsibilities
• 3. Absences

What is required to run a payroll

What is required of a company in order to run a payroll

• The company must be registered as a legal entity in Belgium
• The company must be registered with the Tax Office and the Social

Security Offices

• If there is no registered legal entity, the company cannot be

registered with the tax and social security authorities and will be unable to fulfil the obligations resulting from the payroll process

• The company must have an Enterprise Number

The Belgian tax system

u The Governing Body is Federal Public Service Finance

http://www.minfin.fgov.be/portail2/en/index.htm

u Tax Returns can be submitted electronically via the Tax

On Web system (only available in Dutch, French or German)

u https://eservices.minfin.fgov.be/taxonweb/app/citizen/pub

lic/taxbox/home.do

What is an Enterprise Number?

u The format of an Enterprise Number is 10 digits, starting with

a 0

u It is issued by the Crossroads Bank of Enterprises u This number is also the VAT number and should be quoted on

all correspondence, invoices and documents

u It is used to communicate electronically with the Belgian

Authorities and means that companies are not required to fulfil the same administrative tasks for the different departments of the Belgian Government

Belgian Social Security

u

The Governing Body is the Federal Public Service

u

The National Social Security Office collects contributions and administers the scheme

u http://www.rsz.fgov.be/en

u

The employment office is the FPS Employment, Labour & Social Dialogue

u

http://www.employment.belgium.be

http://www.socialsecurity.fgov.be/en/

Belgian Social Security - An Overview

• Three types of Social Security in Belgium
• Employed
• Self-Employed
• Civil Servants
• Based on the Insurance Principle
• Insures the following risks;
• Unemployment (Excludes Self Employed Persons)
• Old age and Survivors Pensions
• Sickness & Disability
• Work Accident & Occupational Diseases
• Family Benefits
• Holidays (For Blue Collar Workers)

Belgian Social Security - An Overview

• Foreign employees working in Belgium are normally subject to Social Security

and entitled to Benefits under the scheme

• Usual rules apply to Foreign Workers – however they are exempt if
• EU Citizen
• Temporarily assigned to Belgium
• Working in Belgium and Home Country (A1 - Home Country)
• Non EEA Country covered by Reciprocal/Totalisation/Double Convention

Agreement

• The Limosa Declaration
• For Foreign employees working temporarily or partially in Belgium
• Filed Electronically (www.limosa.be)
• Must be completed prior to starting work
• Used to monitor foreign business presence and check they are compliant

Belgian Social Security - An Overview

• There are several administrative tasks required when an employee joins or

leaves an organisation

• Starters
• Employer’s obligations when managing new starters include:
• Employee and employment data needs to be gathered and registered at

least 5 days before the first day of employment.

• This registration needs to be with the External Service for Health and

Safety “IDEWE”; and each employee must be given a copy of the Work Regulations as approved by the Ministry of Employment (>50 employees

• nly).
• Complete the DIMONA (IN) reporting where applicable (starter’s

declaration registration form)

Belgian Social Security - An Overview

• Leavers
• Employer’s obligations when managing leavers include:
• Issue a final payslip including severance pay and vacation pay for the

current and following year

• Provide a vacation statement “'attestation de vacance” for the employee

to submit to their new employer

• Calculate vacation pay, social security contribution and add to monthly

invoice

• Issue a statement of employment/earnings to date
• Produce a C4 leavers document for unemployment benefit
• Report the departure of the employee to DIMONA (OUT)

Belgian Social Security - An Overview

• Blue Collar Workers
• Perform mainly manual task
• White Collar Workers
• Perform intellectual tasks
• From 1 January 2014 Legislation exists to harmonise the rights of Blue

& White Collar workers including;

• Notice periods
• First day of sick leave

Rights and Responsibilities

Employee Rights and Responsibilities

▶ Various rules on employee hours, including restrictions on night work ▶ Part time employees have the same as employment rights ▶ Fixed term workers cannot be treated less favourably ▶ Employers work's council sets disciplinary rules ▶ Processing of Employee Personal Data is regulated ▶ TUPE rules exist where any employee is transferred

Employer Rights and Responsibilities

▶

Disciplinary action

▶

Pay salary and Social Security

▶

Withhold employee social security and withholding taxes and make statutory payments within official deadline

▶

Respect for privacy and dignity of the worker

▶

Employee Representation

The Works Council

▶

Represents the whole of the workforce

▶

Two separate channels - Works Council & Trade Unions

▶

Works council elected if more than 100 EES

▶

Separate body for Health & Safety (CPPT/CPBW)

▶

Elected if more than 50 EES

▶

In companies <100 EES the H & S assumes some of the Works Council rights

The Works Council - Numbers & Structure

▶

Required in Companies of >100 EES

▶

50-100 EES = Health & Safety Committee (CPPT/CPBW)

▶

Comprised of elected employee and employer representatives

▶

Employer cannot have a majority

▶

Blue & White Collar representation should mirror workforce

▶

Chaired By ER representative, Secretary is an EE rep

▶

Meets once a month - pre meetings allowed

The Works Council - Numbers & Structure

Number of Employees Number of EE Representatives 101 - 500 6 501 - 1,000 8 1,001 - 2,000 10

▶ Maximum number of EE Representatives is 25 ▶ 2 additional representatives, for each additional 1,000 EES up to 6,000

EES

▶ Above 6,000 = 1 EE rep per 1,000 EES ▶ Young workers and Senior Managers must be represented

The Works Council - Role

▶ To be informed and consulted about economic and employment issues ▶ Limited decision making powers (Pension Funds, Canteen, Social Clubs) ▶ Quarterly "state of the union" updates ▶ Annual "MI Updates" ( Turnover, Starters, Leavers, No of EES etc) ▶ Right to be consulted on changes affecting employment (Redundancies,

Mergers etc)

▶ Responsible for choosing auditor ▶ Representatives elected every 4 years

Trade Unions - Role

▶ Negotiate new agreements and monitor adherence to those already in

existence

▶ Deal with disputes between ER & ER (Individual or collective) ▶ In companies of <50 EES the trade union will assume Work Council

role/functions

▶ Can be elected by the workforce or chosen by local union ▶ Has the right to inform EES about employment issues (hold meetings,

distribute leaflets)

Trade Unions & Work Councils - Similarities

▶ Enjoy certain protections against dismissal ▶ Entitled to paid time off for training ▶ Paid for attending meetings/union/council business

Health and Safety of employees

▶

A Health & Safety committee should be set up in all companies of 50 or more employees (20 in mines/quarries & 10 in diamond industry)

▶

Comité pour la prévention et la protection au travail or (CPPT) in French

▶

Comité Preventie en Bescherming op het Werk(CPBW ) in Flemish

▶

Where there is no H & S committee, the Trade union assumes its role

▶

Where no union employer consults directly with EES

▶

Committee members also enjoy significant protection against dismissal

Health and Safety Committee - Numbers & Structure

• No of EES

No of H & S members No of EES No of H & S members <50 2 2,001-3,000 12 51-100 4 3,001-4,000 14 101-500 6 4,001-5,000 16 501-1,000 8 5,001-6,000 18 1,001-2,000 10 6,001-8,000 20 Above 8,000 EES = 22 Employee members

Health and Safety Committee - Role

The role of the Health & Safety Committee is, amongst other things, to oversee the following:

▶

All projects and measures which could have an impact on the well-being of employees, either directly or indirectly

▶

Plans for the introduction of new technologies, which could have a health and safety impact

▶

Company health and safety policies

▶

All measures intended to adapt working methods and conditions to the needs of the worker

▶

Adjustment measures for employees with disabilities

▶

The choice, purchase and maintenance of equipment used at work

Absences

Absences in Belgium

u Annual Leave (mentioned previously) u Public Holidays (mentioned previously) u Sickness u Maternity Leave u Paternity Leave u Adoption Leave u Time Credit

Sickness

▶

First 30 days of sickness are paid by the employer

▶

After 30 days liability transfers to the Social Security Fund

▶

Except for new starters - if absence occurs in the first month this is paid by the Social Security Fund.

▶

Notification procedures depend upon the "internal work rules"

▶

Most organisations will insist upon a doctors note after 2 days of absence

▶

Employer can insist employee also sees a Doctor of their choice

Sickness

▶

The employer cannot reclaim any of the sick pay from the state

▶

Once liability transfers to the mutual fund, payments will decrease (circa 70% of salary)

▶

There is no maximum number of "sick days".

▶

After 12 months, payments decrease to 60%; this can last until the employee either returns to work or reaches the age of 65

Maternity Leave

▶ The mother must give her employer at least 3 weeks notice of her

pregnancy

▶ The employee is protected against dismissal from the date of

notification until the month after maternity leave ends

Maternity Leave

▶

Up to 15 weeks of maternity leave

▶

At least 1 week must be taken before the due date

▶

At least 9 weeks maternity leave must be taken after the birth

▶

In the case of hospitalisation maternity leave may be extended up to 24 weeks

▶

For multiple births maternity leave lasts for 19 weeks (8 pre, 9 post, with an

• ption to extend by 2 weeks)

▶

The 1st 30 days of Maternity Allowance is equivalent to 82% of Salary

▶

This reduces to 75% from the 31st calendar day

▶

Maximum of €128,89 per day/5 day week (€107,41/6 day week)

Maternity Leave

There is an age dependent qualifying period of paid employment to receive benefits:

▶ Employees under 21 years old: no qualifying period applies. ▶ Employees aged between 21 and 26 years old: a qualifying period of

90 days' paid employment within the previous seven years (Benefits will be paid if the employee had 180 days' paid employment during the whole of her life)

▶ Employees aged over 26 years old: a qualifying period of 180 days' paid

employment within the last previous seven years (Benefits will be paid if the employee has had 360 days' paid employment during the whole

• f her life)

Maternity Bonus

▶

Tax free bonus payable from the 7th month of Pregnancy

▶

Can be applied for from the 6th month of pregnancy

▶

Paid by the health insurance fund at the father's employer

▶

If the father is unemployed then it's claimed via the mother's employer

▶

Amount paid for the 1st Child is €1,223,11 (920,25 for 2nd Child and decreases for each subsequent child)

▶

If a multiple birth, then each child is considered a 1st child

▶

May be paid in the event of miscarriage/still birth

Paternity Leave

▶

Maternity leave can be converted into Paternity leave in the event of the mother's death or hospitalisation

▶

Fathers are entitled to up to 10 days leave

▶

Must taken within 4 months of the birth

▶

First 3 days are paid at 100% of salary by ER

▶

Remaining 7 days paid by Social Security fund at 82% of salary (subject to a daily maximum)

Adoption Leave

Adoption rights

▶

An employee who adopts a child is entitled to adoption leave

▶

Adoption leave is for a period of:

▶

Six weeks, for a child under 3

▶

Four weeks, over 4

▶

The leave period is doubled if the child has a physical or mental disability

▶

Adoption leave must begin within two months of the child being registered as part of the employee's household

▶

The first three days is paid by the employer (100%), with social security paying compensation for the remainder of the period

Time Credit

What is Time Credit?

▶

Time credit is an opportunity to work fewer hours or days a week for some time, or to take a break from work altogether

▶

There are 3 different types of time credit:

▶

Time credit without a specific reason

▶

Time credit with a specific reason

▶

End-of-career time credit

Time Credit

Time Credit Without a Specific Reason

▶

An employee can take a break of up to 12 months without a specific reason

▶

Must have worked for current employer for 2+ years and have worked for 5 years or more

▶

EES can choose from the following options for time credit without a specific reason:

▶

12 months of time credit on a full-time basis

▶

24 months of time credit on a 50% time basis (must have worked at 75% of full time for the 12 months preceding your application)

▶

60 months of time credit on a 20% time basis (if you worked full time in the 12 months preceding your application)

▶

Time credit on a 20% time basis must be taken up in periods of at least 3 or 6 months

Time Credit

Time Credit With a Specific Reason

▶

Providing the EE has worked for their current employer for at least 2 years, they may take up to 3 years of Time Credit

▶

Reasons may be:

▶

Raising children

▶

Helping a sick relative

▶

Pursuing studies

▶

Giving palliative care

▶

EES can choose from the following options for time credit with a specific reason:

▶

Time credit on a full-time basis

▶

Time credit on a 50% time basis

▶

Time credit on a 20% time basis

Time Credit

End of Career Time Credit

▶

Employees over the age of 55 can reduce their hours if they;

▶

Have worked for their current employer for 2 years

▶

Have a work history of at least 25 years

▶

They can reduce their hours to 80 or 50% on an indefinite basis How is Time Credit paid?

▶

Time credit is subsidised by the state

▶

EE receives career interruption benefit from the Belgian Employment Office (RVA)

▶

Benefit rates can be found on www.rva.be

Time Credit

Time Credit Employee Obligations

▶

Inform the employer in writing of wish to take time credit

▶

3 months in advance (for employers with more than 20 employees)

▶

6 months in advance (for employers with fewer than 20 employees)

▶

Submit the application for the benefit directly to the RVA Time Credit Employer Obligations

▶

Time credit is a legal right for business with 10+ employees

▶

For businesses with less than 10 employees, the employer must agree to Time Credit

▶

An employer may postpone Time Credit leave for up to 6 months, with a serious reason

Time Credit

Important Points to note

▶

If the EE has a seriously ill/disabled child <21 they may take up 4 years Time Credit

▶

An employer cannot dismiss an employee for reasons related to Time Credit

▶

Nor can they dismiss them within the 3 months after returning to work

▶

Time credit is (understandably) popular. Austere times = governments across the world looking at state supported benefits for savings

▶

The laws may change (and entitlements have been reduced recently), so keep up to date:

▶

http://www.svb.nl/int/en/bbz/index.jsp

▶

http://www.rva.be/en

Please contact The Global Payroll Association with questions or to leave feedback, which is always welcome

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