When you are thinking of hiring a new employee in Belgium, and you wonder if the salary package you grant is competitive, there are a few things to consider.
What do I HAVE to pay?
First and foremost, you should make sure that all mandatory salary elements are included in the package.
These mandatory elements may derive from national legislation, for example a holiday allowance which is due for all employees working in Belgium (and who have worked the previous year in Belgium).
These mandatory elements may also come from the Joint Industrial Committee. In Belgium, every company falls under the scope of a joint industrial committee (JIC) based on the activities of the employer in Belgium. Almost all JIC’s have concluded collective labour agreements which are applicable to all employers in that sector.
Depending on the applicable JIC, additional mandatory salary elements are due, such as a year-end premium, indexation, commuting allowance, minimum salaries and sometimes even eco vouchers, meal vouchers and an annual premium.
When you have checked all those mandatory elements, you know the minimum salary package to offer to the employee.
What can I pay EXTRA?
On top of the mandatory salary elements, you can offer extra-legal benefits such as extra-legal holidays, a company car, private use of a phone and laptop etc…
Variable compensation in the form of an individual cash bonus or a more advantageous collective bonus can also be included. On this site, you can learn about bonus schemes in other posts.
But… how do you know whether your salary package is competitive in the market for that role? As the labour market becomes increasingly dynamic, knowledge is power!
A benchmark is a good solution in this case!
What is a benchmark?
A benchmark is a way to know if the salary package you offer to your employees is in line with what the market is offering. A benchmark uses data from a large database filled with salaries and benefits for almost any position in the company. As such, you can compare the salary you offer to salaries for similar positions in other companies in a specific sector.
Not only will you find out if the monthly salary you offer is competitive but you will also find out if this function commonly has a company car/mobile phone/laptop, may work at home on regular basis, what type of bonus this function receives on average, whether he receives an allowance for costs linked to this homework or to the company car etc.
Be careful when implementing such additional benefits and contact a legal advisor to assist you with the employment contract.
Do you need assistance?
Pro-Pay is able to provide you with benchmark reports and optimization of the salary package of your employees. They are happy to assist you about employment law, social law, payroll law or immigration law. You can use the contact sheet to reach out to them.