Recruiting employees: formalities and obligations

If your enterprise is running at full capacity and you could use reinforcements, you can hire a new employee. Recruiting additional staff has not just financial, but also many practical implications. Here’s a summary.

The financial picture

1. (Gross) salary

The biggest cost in the recruitment of an employee is undoubtedly the salary. Even though you are free to set the salary, you must consider collective labour agreements (CLAs). If a CLA applies to your sector, you must pay at least the minimum wage stipulated in that agreement. You should clearly state the wages in the employment contract.

2. The employer's social contribution

Besides the employee’s salary, the employer has to contribute to social security. This corresponds to 25% of the total salary, with a few exceptions. For instance, your employer contributions will be less if you hire a long-term jobseeker or a senior employee. The first person you hire will also entitle you to a sizeable rebate.

3. Allowances and subsidies

In addition to discounts, employers may qualify for allowances and subsidies under specific conditions. These are the main ones:

• the allowance from activa.brussels: you get a maximum of 15,900 euros, spread over 30 months. If you hire someone with limited work capacity, this sum rises to 23,400 euros.
• the incentive for a training programme from activa.brussels: if your new employee is following a course, as an employer, you will receive a maximum of 5,000 euros to pay for this training.

Your administrative obligations

Recruiting employees also involves several formalities:

1. Obligations under the social legislation

Employers must comply with three tasks in order to begin recruiting staff. You may take care of these formalities yourself or entrust them to a payroll services provider.

• You inform the National Social Security Office (NSSO/RSZ) that you will soon become an employer. This can be done online via the Employer Identification application.
• You file a declaration of employment – also known as the Dimona declaration – with the NSSO. This, too, can be done conveniently online.  
• You submit a multifunctional quarterly declaration – DmfA for short – every three months. It contains each of your employees’ salary and hours worked.

2. Other obligations

Besides social security obligations, you have to:

• draw up an employment contract and work regulations
• take out an insurance policy against occupational accidents. If you don’t do that in time, you will be automatically affiliated through Fedris, the federal agency for occupational risks and fined.
• request a (free) affiliation with a child benefit fund, and that within 90 days of the recruitment. This obligation also applies if your employee does not have children. If you don’t choose a fund, you will be automatically affiliated with the National Office for Child Benefit Allowances (Rijksdienst voor Kinderbijslagen van Werknemers - RKW). In some sectors, you will not have a choice. These include e.g. port labour and local and regional government services.
• get affiliated with an external service for prevention and protection at work. The service monitors the mental and physical health of your employees. You will find a presentation of the various external services for prevention and protection at work here.

Conclusion

Recruiting a new employee comes with financial implications and administrative obligations. Make sure to be well-informed before hiring.