Payroll in Belgium

Employers often grant additional benefits to their employees in Belgium. These can include:

Meal vouchers in Belgium
Employers in Belgium often provide meal vouchers to employees, which are exempt from tax up to a certain daily amount. These vouchers are typically funded partially by the employer and the employee.

Additional vacation day in Belgium
Some employers in Belgium offer additional vacation days or policies, such as granting seniority leave, where employees receive extra vacation days based on their years of service within the company.

Wellness programs in Belgium
Employers may offer wellness programs designed to promote employee well-being, which could include gym memberships, mental health support, or wellness workshops.

Transportation benefits in Belgium
Some companies provide transportation benefits to employees, such as covering public transportation costs or offering subsidies for commuting expenses.

Flexible working arrangements in Belgium
Employers may offer flexible work schedules, telecommuting options, or remote work opportunities, allowing employees to achieve a better work-life balance.

Company car benefit in Belgium
The minimum taxable benefit in kind for a company car in Belgium was set at 1,600 EUR per year in 2024, a 3.9% increase from the previous year. Aside from that, employees who use their own car for business purposes can receive reimbursements for incurred costs. The government determines the applicable reimbursement rate on a quarterly basis. As of July 1, 2023, until September 30, 2023, the reimbursement rate for mileage allowances in Belgium stands at 0.4237 EUR per kilometre.

Reimbursement system in Belgium

The reimbursement system for employees and employers in Belgium depends on various factors, such as the nature of expenses, the legal obligations, and the type of expenses involved. The Belgian government has set out regulations that employers must follow when reimbursing employees for expenses. 

For instance, with respect to business travel expenses, the employer has the option to either reimburse actual expenses or pay a tax-free lump-sum reimbursement per employee. As of 2022, employers can pay tax-exempt amounts of up to 1.1591 EUR for the first 30 days of domestic travel and 2.9570 EUR from the 31st day onwards. For foreign travel, the exemption amounts are 1.7587 EUR per day for the first 14 days of travel, and 3.6016 EUR per day from the 15th day onwards. Employers must maintain proper documentation to justify these expenses and avoid tax penalties.

Apart from travel expenses, the Belgian government also has provisions for tax-exempt allowance payments for employees working from home. From January 2022, employers can pay a fixed amount of 129.48 EUR per month, tax-free, for home working allowances to employees. 

Reimbursement of other employee expenses, such as meal and entertainment expenses of employees incurred during business travel, are subject to limitations and conditions and require proper documentation for tax purposes.