Annual leave in Belgium involves specific rules and benefits, including both single and double vacation allowances. Here’s an overview of how vacation days are earned, how vacation allowance is paid, and what happens when employees change employers.
What Is the Difference Between Single and Double Vacation Allowance?
Belgium offers two types of vacation allowances for employees:
Single Vacation Allowance
- This is the regular salary employees receive while on vacation.
- The single vacation allowance covers standard vacation days and is the same as the employee’s regular pay.
Payment of Vacation Allowance:
- This is an additional payment, equal to 92% of the employee’s monthly gross salary.
- The amount is prorated based on months worked in the previous year if the employee only worked part of that year.
- This additional allowance gives employees a financial boost for vacation expenses.
How Is Vacation Earned, and When Is It Paid?
Earning Vacation Days and Allowances:
- Employees accrue vacation days based on the number of days worked in the previous calendar year, known as the “reference year.”
- Employees working a standard 5-day week can earn up to 20 legal vacation days per year.
Payment of Vacation Allowance:
- Vacation allowance is based on both monthly and variable pay (such as bonuses and commissions) over the past 12 months.
- Single and double allowances for variable pay are paid together. If employment was partial, the single vacation allowance is prorated.
- Only single vacation allowance is subject to social security contributions.
Timing of Vacation Payments:
- Double vacation allowance is typically paid once a year, often in the spring.
- Single vacation allowance is paid at the time the employee takes their vacation days.
What Happens if an Employee Changes Employers?
When employees move to a new employer, their vacation rights transfer smoothly:
- Vacation Certificate: The departing employer provides a vacation certificate documenting the employee’s accrued vacation days and allowances.
- No Repayment Required by New Employer: Since the previous employer pays out any accrued vacation allowance upon departure, the new employer does not have to pay this again. Instead, the new employer adjusts the employee’s vacation allowance by any amount already paid by the former employer.
This approach ensures that employees keep their earned vacation rights when transitioning to a new role.
Recent Change: Adjustment to Single Vacation Allowance
Starting this year, there’s a new system for withholding vacation allowances during vacation days:
- Deduction Process: Authorities now deduct 90% of the single vacation allowance for each vacation day taken. This leaves employees with 10% of their gross daily pay for each vacation day.
- Final Settlement: At the end of the year, a final settlement adjusts any over- or under-deductions to ensure accurate withholdings, varying by the month’s total working days.
This adjustment aims to streamline vacation payments and ensure compliance with updated withholding standards.
Belgium’s vacation leave regulations provide employees with both financial support and flexibility, ensuring that vacation rights are preserved even when changing jobs.
