A remote employee in Belgium: which social security system applies?
More and more foreign companies employ people who live and increasingly work in Belgium, without the company having any office there. The corporate tax side of this story (permanent establishment risk) is covered in our earlier insight. But there is a second, equally important question: where does the employee pay social security? The answer determines your employer cost, your registration duties and your employee’s benefit coverage.
Content Intro
The starting point: one country at a time
Within the EU/EEA and Switzerland, Regulation 883/2004 ensures an employee is covered by only one social security system. For cross-border situations, the default rules are:
- An employee working in one country is insured there regardless of where the employer is established.
- An employee working in two or more countries is insured in their country of residence if they perform a substantial part (25% or more) of their activities there.
The consequence: an employee living in Belgium who works from home 25% or more of their time is, by default, subject to Belgian social security and the foreign employer must register with the Belgian National Social Security Office (NSSO/RSZ) and pay Belgian contributions.
The telework framework agreement: a useful exception
Since July 2023, an EU-level framework agreement on habitual cross-border telework softens this rule. If both countries involved have signed it (Belgium has) the employer and employee can jointly request that the employee remains covered in the employer’s country, provided that:
- the telework in the residence state stays below 50% of total working time;
- only telework is performed in the residence state (no client visits or other activities there);
- an application (resulting in an A1 certificate) is filed in the employer’s country.
This is an opt-in, not an automatic rule. Without the application, the standard 25% rule applies in full.
What if Belgian social security applies?
Belgian coverage is not the end of the world, but it must be organised. The foreign employer needs to register as an employer with the NSSO, run a Belgian payroll (or appoint a payroll provider), declare the employee via Dimona and file quarterly DmfA declarations. Belgian employer contributions are a significant cost factor and should be included in any remote-hire business case.
Practical takeaways
- Quantify home-working days before agreeing to a remote arrangement: the 25% and 50% thresholds decide everything.
- Use the telework framework agreement where possible, and file the A1 application proactively.
- Formalise the telework pattern in the employment contract or a policy, and monitor compliance with it.
- Align the social security analysis with the permanent establishment analysis — they are separate tests with separate outcomes.
How B-Mobility can help
B-Mobility, the international mobility solution of PKF BOFIDI, supports foreign employers with every legal, social security and immigration aspect of working in Belgium. Get in touch with our international mobility specialists.