Belgium continues to navigate a period of structural change across labour law, taxation, housing and pay, with 2026 shaping up to be a year of significant adjustment for employers, employees and internationally mobile talent alike.
Recent announcements and policy updates highlight a clear direction of travel: greater flexibility in working arrangements and compensation structures, increased pressure to meet sustainability and energy targets, and continued fine-tuning of Belgium’s complex indexation and tax systems.
Together, these developments provide important context for organisations operating in or relocating staff to Belgium, particularly those managing cross-border workforces.
'For employers, these adjustments provide greater flexibility in designing competitive and tax-efficient expat packages, particularly in a labour market where international skills remain in high demand.'
Updates in Belgian Labour Law for 2026
Several labour law measures confirmed for 2026 signal the government’s intention to modernise elements of Belgium’s employment framework while maintaining long-standing social protections.
One of the most immediately relevant changes concerns meal vouchers, a core component of Belgian reward packages. From January 2026, the maximum daily value of meal vouchers has increased to €10, up from €8. At the same time, the portion that employers may deduct as a professional expense has doubled, provided they contribute the maximum employer share. While the adjustment gives employers greater flexibility in structuring tax-efficient pay, it also requires careful implementation, including updates to internal policies and employment contracts where needed.
Importantly, this increase has been explicitly excluded from the 2026 wage norm calculation. In a system where wage growth is tightly regulated, this confirmation removes a potential barrier for employers wishing to enhance benefits without exceeding statutory limits. Sector-level negotiations remain possible, reinforcing Belgium’s tradition of allowing room for tailored solutions.
Looking slightly further ahead, the upcoming mandatory mobility budget marks a more structural shift. Employers that have offered company cars for a sustained period will be required to provide a mobility budget as an alternative, starting in 2027 for larger organisations and extending to smaller employers from 2028.
The policy reflects broader environmental and mobility objectives, encouraging employees to choose more sustainable transport options or alternative benefits. While the framework is not yet finalised, its phased introduction gives employers time to prepare, although implementation is expected to involve considerable planning.
Read more in ProPay’s industry update here.
90% of Brussels Homes Need Renovating to Meet 2050 Energy Standards
Beyond the workplace, Belgium faces a formidable challenge in meeting long-term climate and energy objectives. Recent research has underscored the scale of the task ahead, revealing that more than 90% of homes in Brussels will require renovation to comply with energy performance standards set for 2050. The findings highlight a stark mismatch between current renovation rates and the pace required to meet regional and European targets.
At the same time projections suggest sustained population growth will drive demand for hundreds of thousands of additional homes nationwide over the coming decades. This combination of renovation and new-build requirements represents the largest construction challenge Belgium has faced in generations.
For policymakers and employers alike, the implications are significant. Delays in subsidy schemes and permitting processes have already slowed progress, while construction capacity constraints and rising costs risk further widening the gap between ambition and reality.
From an economic perspective, large-scale renovation programmes could stimulate employment and innovation, but they also raise concerns around affordability, access to housing and the financial burden placed on homeowners and tenants. For internationally mobile employees relocating to Belgium, housing quality, energy efficiency and long-term living costs are becoming increasingly important considerations.
Business Travel Lump-Sum Allowances Updated
Recent clarifications to the rules governing business travel lump-sum allowances have introduced welcome flexibility for employers and employees. Under the updated guidance, the previous minimum duration requirement for one-day business trips has been removed, meaning employees no longer need to be away for a set number of hours to qualify for a full daily allowance. This recognises the reality of business travel, where shorter, more targeted trips are increasingly common.
There are also further adjustments relating to multi-day travel. Employers are now permitted to grant full daily allowances on both departure and return days, rather than being limited to partial amounts.
While reductions remain necessary where specific costs such as meals or accommodation are already covered, the revised approach simplifies administration and aligns more closely with actual travel patterns.
For organisations with internationally mobile staff or frequent cross-border activity, these changes reduce the need for detailed expense tracking while maintaining compliance with tax and social security rules.
Latest Changes to the Expat Tax Regime
Belgium has also taken steps to reinforce its attractiveness as a destination for international talent through enhancements to its special tax regime for inbound taxpayers and researchers.
Changes introduced with retroactive effect from January 2025 have lowered the minimum salary threshold required to access the regime, broadening eligibility to a wider group of professionals. At the same time, the proportion of pay that may be treated as tax-free allowances to the employer has been increased, and the previous annual cap on these allowances has been removed.
For employers, these adjustments provide greater flexibility in designing competitive and tax-efficient expat packages, particularly in a labour market where international skills remain in high demand. The ability to apply the regime retroactively for qualifying employees offers additional opportunities, although strict deadlines apply and careful implementation is needed to ensure compliance.
However, the picture is not entirely straightforward. While tax legislation has evolved, social security rules have not yet fully aligned with the updated regime. As a result, differences remain in how allowances are treated for tax and social security purposes, at least for now. This misalignment adds a layer of complexity for employers and highlights the importance of coordinated payroll and mobility management.
You can read more on this in our industry update here.
Wage Indexation January 2026
Belgium’s automatic wage indexation system remains a defining feature of its employment landscape, and January 2026 brought another round of adjustments for employees covered by Joint Industrial Committee 200.
Despite ongoing political debate about limiting indexation for higher salaries, full indexation was applied at the start of the year under existing rules, ensuring that wages kept pace with inflation.
The broader debate around indexation is far from settled. Proposals to cap indexation at a fixed income level continue to be raised in policy discussions, reflecting concerns about labour costs and competitiveness. Should such measures be put in place later in 2026 or beyond, they would mark a significant shift in a system that has long been central to preserving spending power. For now, employers must continue to apply current rules while remaining alert to potential legislative changes that could reshape remuneration structures in the near future.
As the year unfolds, we will keep an eye on these points and more. So, look out for more ABRA Industry Updates coming soon.
If you have a story you think we should cover, please reach out to the team and we’ll be glad to take a look.
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