Labor cost reduction 101Tax 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:
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How to cut labor costs in Flanders
To help your company cut labor costs, Flanders offers access to an extremely productive workforce, fiscal advantages, wage optimization possibilities and various other labor incentives. Get the details below!
Use various reductions on social security contributions
Various reductions on social security contributions are available in Flanders, including measures for first recruitments, young employees and older employees.
Leverage 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.
Benefit from the expat status for foreign executives and researchers
Foreign executives and researchers temporarily assigned to Belgium and Flanders can benefit from a special expat tax status. They may receive tax-free expat allowances as well as tax-free reimbursement of installation costs, school fees, and more.
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 structureCompanies beginning operations in Flanders can take advantage of the region's flexible labor structure, which includes factors such as economic unemployment and flexible scheduling. |
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