10 Strong Extra-Legal Benefits

Business Belgium - Extra-legal benefits

Written by Admin

15/12/2024

Almost every employee in Belgium receives an extra-legal benefit from the employer in addition to salary. The range of extra-legal benefits is huge. Here is an overview with more than 10 strong common employee benefits in Belgium.

A Pension Scheme is Included in a Group Insurance

Business Belgium - Group insuranceOne of the most common forms of extra-legal benefits in Belgium is group insurance. Generally, such insurance guarantees pension capital, capital in case of death, incapacity to work, and health insurance. Sometimes, these benefits are partly funded by employees.

It’s important to work only with a licensed insurance broker. You can verify the identity of a broker on the website of the FSMA  (Belgian Financial Services and Markets Authority).

Protect your Health with a Health Insurance

All employees in Belgium must contribute to a health insurance fund (mutualiteit in Dutch or mutuelle in French). Most medical costs are partly reimbursed by the health insurance fund.

Employers can provide employees with additional health insurance coverage as an employee benefit.

The Most Common Extra-Legal Benefit: Meal Vouchers to Buy Food

Business Belgium - Edenred restaurantMeal vouchers (or luncheon vouchers) is a voucher for a meal given to employees that can only be used to pay for a meal or to purchase ready-to-use food.

They are undoubtedly the most widespread benefit in Belgium and the one employees truly appreciate. Meal vouchers are advantageous for employers and employees alike.

Also self-employed persons can grant themselves meal vouchers. Meal vouchers are governed by a strict legal framework.

Eco-vouchers to Promote Sustainable Consumption

Eco-vouchers are electronic vouchers that employees can use to purchase eco-friendly products and services. They are designed to encourage sustainable consumption and support environmentally responsible choices. Good to know is that eco-vouchers are compulsory in some joint industrial committees.

The Famous Company Car, a Very Popular Extra-Legal Benefit

Business Belgium - Company car

A company car is a vehicle that employers provide to their employees. The most attractive perk for employees is that the company car or salary vehicle, is not only used for commuting, but one is also allowed to use it privately.

This extra-legal benefit often includes a fuel card or a charge card, significantly reducing energy expenses.

Contributing to a Greener Environment with a Company Bike

There are also measures to promote sustainable commuting such as the company bike. Employees who receive a company bicycle as part of their pay package are allowed to use it for commuting.

This extra-legal benefit is often included in mobility budget or cafeteria plans offered by employers.

Innovative Approach with the Mobility Budget

The Mobility Budget allows employees to exchange their company car for a yearly budget, which they can use to finance their preferred means of transportation. This budget can be allocated in three main ways: choosing an environmentally friendly company car, such as an electric or hybrid vehicle; covering sustainable mobility options, including public transport tickets, bicycles, or housing costs; and receiving any remaining budget balance in cash after the first two options have been considered.

End-of-Year Gifts to Valued Staff Members

End-of-year staff gifts are a way for companies to show appreciation for their employees’ hard work and dedication. These gifts boost morale and motivation, foster a positive work culture, and strengthen relationships between the company and its employees. Thoughtful gifts create lasting memories and can reflect the company’s values. Overall, end-of-year gifts are an important token of appreciation that contribute to employee satisfaction and loyalty.

Working Less with Additional Holidays

public_holidays_belgium (BusinessBelgium.be)In Belgium, there are 10 public holidays in 2025. On top, full-time employees are entitled to 20 annual leave days per year. However, many employers enhance this extra-legal benefit by offering additional holidays as part of their fringe benefits. These extra paid days off can be granted through sectoral Collective Labor Agreements (CLAs) or company-specific policies.

The conditions and rules for these additional holidays can vary significantly depending on the employer and the specific agreement in place. Some companies may link the accrual of extra holidays to the employee’s length of service or performance, while others may offer them as part of a broader extra-legal benefits package aimed at improving work-life balance and employee satisfaction.

Slightly more Exotic with Employee Stock Options

Business Belgium Employee Stock OptionsEmployee Stock Options (ESOPs) are equity compensation tools companies use to grant employees and executives the right to buy shares at a predetermined price.

In Belgium, ESOPs can be taxed at the grant date, offering potential tax advantages and social security exemptions under specific conditions outlined by the Belgian Stock Option Act of 1999. These options help retain and motivate key employees and provide a potential for capital gain upon future sale, such as an IPO or merger.

The taxable benefit is calculated based on the fair market value of the shares, with specific criteria affecting the tax rates and conditions.

Digital Devices like Computers, Smartphones and Internet Connections

Many employers provide work computers or laptops, smartphones and internet connections to their employees. They can sometimes come with tax benefits. For instance, if the devices are used primarily for work purposes, they might be exempt from certain taxes. However, in most cases the employees will be taxed on the value of the device.

Do you Want to Know More?

When recruiting staff, an employer should keep in mind the need to present itself as an attractive employer. This is not just about the salary package. As an employer, you can already convince a lot of talents with a strong mission and vision. But is that enough?

In practice, of course, the paycheck remains vital for every employee. A competitive salary, supplemented with fringe benefits, should not be underestimated. It will not be the only reason why the top talents choose your company, but without a strong salary package, you can forget it.

Companies want to offer a comprehensive compensation package that includes both a competitive salary and valuable fringe benefits that make employees feel valued, supported and motivated. This investment in employee well-being is vital to their personal and professional development and to the overall success of organisations.

If you are interested in extra-legal benefits and you want to contact a local expert in payroll and employee benefits who can guide you through the range of many employee benefits, you can use the contact sheet below.

Liked What You Read? Share This Article:

You May Also Like…

Belgian Wage Indexation Reveal

Belgian Wage Indexation Reveal

Wage indexation exists in many European countries. Usually this is laid down in sector and/or company collective...

Questions?
Contact us