Do you manage a non-profit organisation in Belgium and are wondering which type of contract to use when hiring staff? There are several options, each with its own rules and obligations. Employee, volunteer, student, employment through an employer's alliance or a payrolling service... The choice depends on your needs and legal constraints. Here is a straightforward guide to help you understand and choose the best solution for your non-profit organisation.
Traditional employment contract
When hiring someone as a regular employee in your non-profit organisation, you’ll need to sign an employment contract. This means all standard labour laws apply: your employee is entitled to a minimum wage, paid leave, and other legal protections.
f your non-profit decides to employ staff, you’ll have several key responsibilities.
Social and administrative obligations
Social obligations :
- Register yourself as an employer with the NSSO
- File a DIMONA declaration with the NSSO
- Submit a multifunctional declaration (DmfA) every quarter
- Payment of social security contributions
Other obligations :
- Take out an insurance policy against occupational accidents
- Set up an internal service for prevention and protection at work and get affiliated with an external service for prevention and protection at work
- Payment of withholding tax (IPP)
- Payment of optional benefits and expenses (meal vouchers, travel, etc.)
- Preparation of pay slips, individual accounts and tax sheet 281.10
📌To help you comply with all the restrictions associated with hiring, it may be worth using a payroll management service. These services can support you throughout the entire process, from salary tracking to administrative management.
Contracts under Article 17 (socio-cultural and sports sectors)
NPOs operating in the socio-cultural or sports sector may, under certain conditions, hire workers without paying social security contributions to the NSSO for these employees.
⚠️ Watch out: the worker does not benefit from social protection (i.e. no unemployment or pension rights)!
This system is subject to the following annual working hour limits:
- 300 hours for all activities listed under Article 17
- 450 hours for the sports sector
- 190 hours for students.
⚠️ Important: A student working under Article 17 and as a student worker in the same calendar year can accumulate a maximum of 190 hours under Article 17 (regardless of the activity) and 475 hours as a student worker
Standard labour laws apply, meaning a fixed-term employment contract must be signed between the worker and the NPO.
Student contracts
Students have an advantage: you pay much lower social security contributions for them.
- 5.42% paid by your non-profit
- 2.71% paid by the student
- A student can work up to 650 hours per year under this favourable system.
Payment is based on hours worked rather than full working days, providing greater flexibility for the NPO and the student.
Employers’ Alliance Contracts
An employer alliance is a collaboration between two or more organisations (companies or non-profit organisations) that jointly recruit employees. These employees can then work alternately or simultaneously in the participating organisations.
Requirements :
- The alliance itself must be established as an NPO.
- Its sole purpose must be to make employees available to its members.
- It must obtain prior authorisation from the Ministry of Employment.
Provision/loan of staff
Staff lending is permitted in two specific cases:
- Temporary work. Allows NPOs to hire additional workers for short-term needs. Eligible scenarios are legally defined. Find out more.
- Integration jobs (former "Article 60 PCSW") An "Integration job" (formerly known as "Article 60") enables a PCSW beneficiary to find a job. The contract is signed between the beneficiary and the PCSW (the legal employer), but the worker is placed within an NPO.
💡The advantage for the NPO is that it only covers part of the employee’s salary costs.
📌 To apply as a company, you should contact one of the PCSWs in the Brussels-Capital Region.
Payrolling structures
NPOs can engage workers through a payrolling organisation, such as Smart, Tentoo, Merveille, Amplo, Paypro Service
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Advantages:
- The NPO does not assume the legal obligations of an employer.
- The worker remains an employee of the payrolling organisation and invoices the NPO through the payrolling company’s registration number.