• Flanders Investment & Trade
  • Invest in Flanders

Labor cost reduction 101

Tax law changes resulted in several labor cost reduction initiatives in Flanders. In addition, even though social security contributions (SSC) in Flanders are relatively high, there are many SSC reductions, fringe benefits and other fiscal schemes that serve to greatly reduce employers’ tax burdens.

What’s more, labor costs in Flanders are further offset by:

Use various reductions on social security contributions

Various reductions on social security contributions are available in Flanders, including measures for first recruitments, low-skilled workers and older employees.

Get withholding tax exemptions for specific types of employees

Companies employing scientific researchers, night workers, shift workers and employees working in a continuous regime can benefit from a number of financial advantages.

Leverage the expat status for foreign executives and researchers

Foreign executives and researchers temporarily assigned to Belgium (and Flanders as a region) can benefit from a special inpatriate tax status. Advantages include the tax-free reimbursement of living, housing and other recurring costs resulting from the employee’s posting to Belgium, as well as the repayment of school fees, relocation costs and installation expenses.

Apply wage optimization and alternative remuneration

Want to increase your employees’ net earnings while keeping your company’s labor costs in check? Various ‘benefits in kind’ and alternative remuneration possibilities are available in Flanders to help you do just that. 

A flexible labor structure

Companies beginning operations in Flanders can take advantage of the region's flexible labor structure, which includes factors such as economic unemployment and flexible scheduling.