Guide to living and working in Belgium

Belgium

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Country Overview

 

Population

10.4m

Unemployment Rate

10.7% (11/07)

Average annual unemployment rate 1995 – 2004

8.2%

GDP

€298bn / $442bn

GDP per head

€24,017 / $35,660

Capital

Brussels

Major language(s)

Flemish, French, German

Life Expectancy (UN)

76 years (men)

82 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.be

International dialing code

+32


In 2001-03 economic growth in Belgium dropped sharply because of the global economic slowdown, but recovered moderately in 2004-07. In 2008, credit tightening, falling consumer and business confidence, and uncertainty surrounding delays in government formation could slow growth and reduce foreign investment. In Flanders, the regional unemployment rate is lower than in the capital Brussels or the Wallonia region. Many foreign nationals work in Belgium in an impressive range of professional sectors. Almost all sectors are represented on graduate jobsites and are likely to be focused on the major industries of manufacturing, agriculture, tourism, administration, finance and textiles.

 

The Economy

 

 

Belgium’s modern, private-enterprise economy has benefited from its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the populous Flemish area in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactured products, making its economy unusually dependent on the state of world markets. Approximately 75% of its trade is with other EU countries and public debt is more than 85% of GDP. The country is running a relatively balanced budget and income distribution is relatively equal. Industries include: engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, basic metals, textiles, glass, and petroleum.

 

Pay

 


 

Human development Index

 Ranking:  17th 
Index Value:  0.946


 

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

Belgium is a federal state composed of communities and regions. Employment policies (job seekers’ assistance, back-to-work assistance, etc.) are managed on a regional level (Flemish Region, Brussels Region and Walloon Region). In terms of general employment policy matters, they fall under the Federal Ministry of Employment and Labour.

Belgium has 10.4 million inhabitants and an active population of 4.85 million (2005). The employment rate increased from 57% in 1997 to 60.6% in 2005.

The Belgian labour market varies between and within regions: Flanders had an unemployment rate of 4.5% in 2004, the figure for Wallonia being 11% and for the Brussels/Capital Region 13.6%. This situation is the result of socio-economic differences between the regions. Structural and external forces have created imbalances in employment supply and demand. Despite a significant reserve of qualified manpower, many vacant positions are difficult to fill.

Applying for a job:

The cover letter and CV should always be typed, unless a handwritten version is specifically requested. It is customary to list your work experience and academic qualifications in reverse chronological order, starting with your most recent job or qualification and then continuing with the previous ones.

 

Conditions and rights

Employment law:

Belgium is a federal state divided into three main semi-autonomous regions - Flanders (Flemish speaking), Wallonia (French speaking with a slice of German speaking provinces in the East) and Brussels (Officially a mixed linguistic regionsOfficially a mixed linguistic region: French and Flemish). All competence for making employment laws lies with the federal parliament. The enforcement of these laws is primarily through locally-administered labour courts. Collective bargaining is the key mechanism by which labour standards are established and maintained. A multi-industry agreement that creates a formal framework for all collective agreements is concluded every two years. Several industry agreements exist and many are extended by royal decree to become generally binding to all employers in a particular sector or geographical area.

Working hours:

Standard hours: Working hours must not exceed eight per day or 40 per week. Various amendments to the legislation mean that, in reality, the limits are nine hours per day and 40 hours per week.
Overtime: If the time worked exceeds the normal working hours, then workers are entitled to overtime payments. Overtime is paid at 50% above the normal rate, or 100% in the case of work on Sundays or public holidays.

Holidays and leave:

The right to paid leave depends on whether you have worked the previous year. This means that you cannot take leave during the first year of work in Belgium. Your employer may, however, grant you some days off without pay. For workers, a full year of employment provides entitlement to 20 days’ holiday the following year.

Parental leave: All workers can take parental leave, which may start at the birth of the child and which must be taken by the time the child reaches the age of six.
Maternity leave: Prenatal leave is optional. Nevertheless, from the seventh day before the expected birth date, the pregnant woman has to go on leave. Post-natal leave starts on the day of the birth and lasts for a compulsory period of nine weeks.
Paternity leave: At the birth of his child, a worker is entitled to take 10 days’ leave, which he must take within 30 days of the birth. He will usually be paid for the first three days. For the remaining seven days, he will receive a payment from his mutual insurance company.
Sick leave: If you are sick, you generally have to provide the mutual benefit association with a doctor’s certificate by the second day. If you do this later, statutory sick pay will only be paid from that date. Entitlement to benefit will depend on the individual contract, on whether the worker is in a probationary period and on how long the employment contract has been in force.

Public holidays: 1 January, Easter Monday, 1 May, Ascension Thursday, Whit Monday, 21 July, 1 November, 11 November and 25 December. Where a public holiday falls on a Sunday or a day that is normally a non-working day, it is replaced by a regular working day. When a worker has worked on a public holiday, he or she is entitled to a day off, which must be granted within six weeks of the relevant public holiday.

 

Contracts

Types of employment: 

In Belgium, the minimum working age is 18. However, there are two exceptions to this:
Apprenticeship contract: From the age of 15, any pupil receiving technical or professional training, who has completed the first two years of lower secondary education, can sign an apprenticeship contract. The contract is signed between the apprentice and the employer for a maximum period of three years.
The student contract: Foreign students aged at least 15 can sign fixed-term employment contracts even if they are not in education or residing in Belgium. At 18, students are legally authorised to execute a contract and receive a salary.

Different types of contract are used depending on: the type of work, the duration and/or the length of services:

  • Depending on the type of work: A contract for work as a manual worker, as a white-collar worker, as a trade representative, as a domestic, as a home worker or as a paid sportsman.
  • Depending on the duration of the services: An open-ended contract, a fixed-term contract, a contract for specific work (seasonal work), a contract to work as a replacement or a contract for carrying out temporary work.
  • Depending on the length of services: A full-time contract or a part-time employment contract.


Employment contracts:

Although it is not compulsory for open-ended contracts, it is in a worker’s interest to request a written employment contract. Contracts generally contain the following information: 

  • names and addresses of the employer and the worker 
  • the date on which work starts and finishes 
  • place of work 
  • description of the work to be carried out 
  • pay and method of calculation 
  • length of any probationary period 
  • length and hours of work

Amendments made to the employment contract have to be agreed by the employer and the employee. If one of the parties amends the contract without notifying the other party, this action may be considered to be a breach of contract. The employer, who is in charge of managing the company, can restructure and reorganise the contract if necessary for economic reasons provided it does not significantly alter any essential elements of the employment contract.

 

Visas and work permits

Visas:

Citizens of full European (EU, EFTA, EEA) Member Countries: are able to live and work in Belgium without a visa or work permit.
Belgium is a member of the Schengen countries. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.

Nationals of the following countries and travelling with a valid passport do not need a visa to visit Belgium for less than 90 days: Andorra, Argentina, Australia, Bolivia, Brazil, Brunei, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Ecuador, El Salvador, Estonia, Guatemala, Honduras, Hungary, Iceland, Israel, Japan, South Korea, Latvia, Liechtenstein, Lithuania, Malaysia, Malta, Mexico, Monaco, Nicaragua, New Zealand, Panama, Paraguay, Poland, San Marino, Singapore, Slovak Republic, Slovenia, Switzerland, United States of America, Uruguay and the Vatican City. Holders of passports not mentioned above will need to obtain a visa to enter Belgium.

Work permits:

Several categories of foreign nationals do not require a work permit. Others can claim a category A or category C work permit, which are valid for all employers. Some foreign nationals can only be employed if they have a category B work permit. This type of permit will only be granted if an employer obtains authorisation to employ foreign workers. 

Category A work permits: are issued for indefinite periods and are valid for all employers and employees throughout Belgium. They are issued to foreign nationals who provide proof of four years' employment covered by a category B work permit during a maximum ten year period of legal and uninterrupted residence. This period is reduced to three years for nationals of countries with which Belgium is linked by employment agreements for foreign workers. This period is also reduced by one year if the spouse or children of the foreign national also reside legally in the country.
Category C work permits are issued for a maximum of one year, and are valid for all employers and employees throughout Belgium. They are granted to those staying in the country temporarily.

The main categories of foreign nationals exempt from the work permit requirement are as follows:
Nationals of a Member State of the European Economic Area (EEA) and their spouses, children aged under 21 years and dependent relatives. The member states of the EEA are as follows: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Lichtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom.
‘New’ EU citizens: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia) must hold a work permit to be able to work in Belgium. To obtain a work permit, an employer in Belgium must apply to the authorities on behalf of the foreign worker.

 

Tax, social security and healthcare


Incomes and taxation:

Wages are expressed as gross salaries per hour or per month. There are two types of deductions on gross income for employees: the social security contribution and income tax. The social security contribution is always 13.07% of the total gross income for all employees. Deductions for tax depend mainly on the family situation (number of children, etc.).
Grounds for paying tax in Belgium include: residence in Belgium, working in Belgium (not for cross-border workers from France and Germany), being seconded to Belgium and exceeding the stay limit of 183 days. Anybody who has a residence in Belgium is assessed for tax purposes. If you live in Belgium, you will also pay local taxes, called surcharges, which vary depending on where you are living. Many countries have double-tax treaties 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.

Social security system:

When you start working in Belgium, you pay contributions to the social security system. Your employer must complete the necessary paperwork for your affiliation, except for health insurance, for which you must choose a mutual association or register with a supplementary health insurance fund. The amount of social security contribution is equal to 13.07% of your gross salary. It is deducted from your salary by your employer.
When you start work, you become entitled to family allowances in Belgium unless you have the right to receive these in another country. Under an employment contract, you immediately become entitled to have medical expenses refunded through the sickness fund. However, you do not become eligible for replacement income until the minimum 6 month period of insurability within the EEA has elapsed. You remain insured by the country of residence if you are in receipt of unemployment benefit when you arrive in Belgium. Short periods of work do not normally carry pension rights.

Health system:

Health care includes both preventive and curative care. Sickness insurance covers employees, the self employed, civil servants, people on guaranteed minimum income benefit, pensioners, students, handicapped people, etc., and their dependants. Sickness insurance is also compulsory for everyone. To be entitled to health care you must be registered with a mutual benefit association and pay contributions. The amount of contributions depends on a number of factors, e.g. the claimant’s income. If you have come from a country with which Belgium has concluded a social security agreement, you must have been covered by the health insurance scheme of the relevant member country for at least six months prior to joining.

If you see a doctor or receive medical care, you will initially have to pay for this in full. The doctor will then give you a record describing the care provided. The health scheme will refund some of the costs once it has received this document, and the rest of the cost will be the insured person’s own contribution. This varies according to the type of service provided. There is a special refund system for disadvantaged persons. If a medicine is prescribed by a recognised doctor, the patient does not have to pay for this in full, only the co-payment (ticket modérateur). Expenses incurred in hospitals and other care institutions are refunded on a lump sum basis by the insurance scheme.

 

Lifestyle

There is more to Belgium that politics and chocolate.  The country, although strongly divided by the languages of the north and south, has become a natural hub for European and international business and government.  The ex-pat population is significant; leading to highly developed and tailored services for foreigners.