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A clear-cut labor cost system

The main components of labor cost are gross wage or salary, and the employer’s social security contributions. In Belgium, a joint industrial committee (JIC) of each sector is responsible for establishing minimum wage levels.

White collar and blue collar employees

There are several important distinctions between blue and white collar employees in Belgium. These differences include:

  • amount of social security contributions;
  • payment terms of holiday/year-end bonus;
  • hourly vs. monthly payment frequency;
  • approach to vacation pay in terms of the social contributions of the employer;
  • blue collar employees are not paid during vacation.

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