Net vs. gross income in Belgium: what to expect in terms of salary?
Before deciding to make the move to Belgium, you’ll want to have at least some idea of how much money you could make. But how big is the difference between gross income and what you take home at payday?
Salaries in Belgium depend on a
number of factors, including age, sector and degree. According to a recent
study, 80% of people in Belgium earn a gross income of more than 2,305 euros
and a net income of more than 1,648 euros. Of course, how much pay you take
home every month depends heavily on your particular situation: what job you’ll
be doing, whether you’re married, which fringe benefits (like employer-paid
medical and dental insurance, employee discounts, mobile phone, a company car…)
you’re enjoying, etc. As a result, two people who share the same gross income
don’t necessarily have the same net income.
Gross versus net
Employers automatically deduct the payroll tax
and social contributions (13.07 per cent calculated on 108% of gross income)
from their employees’ gross salary. The total payroll tax depends on the
taxable gross salary (gross income minus social security contributions), family
composition, and other factors.
Confused? Let’s say that you’re a starting
crane operator who earns a gross income of 2,470 euros. You’re not married, and
you don’t have any kids. How much would you likely take home? Let’s do the
– Social contributions (13,07% of 108% of
= Gross taxable income
– Withholding tax (depending on income
scale, here 19%)