Artists in Belgium can now opt to be self-employed

Before the changes were introduced artists in Belgium were always considered to be employees, even if they were not bound by an employment contract. When this set up worked it was a good deal. Employees generally pay lower social security charges than self-employed people because their employers must also make a contribution to state welfare schemes on their behalf.

But problems arose for artists who were unable to find an employer prepared to make the relatively hefty social security payments and fill in all the accompanying paperwork needed to hire someone legally – often for a very short period.

This led to situations where some artists were paid ‘on the black’ with no effective social security cover at all. It also meant that many emerging independent artists who were unable to secure above the board work were condemned to making a shadowy living in Belgium’s infamous grey economy.

Self-employed or employee?

The new law has changed all of that. Artists can now register as self-employed workers if they want to. What this means in practice is they can bill for their services and make all of the necessary social security payments themselves.

The question of course is ‘is this a good deal?’ and the short answer is ‘not particularly’. Social security payments for the self employed in Belgium are higher than for employees. This is because, as mentioned above, an employer must also make security payments on an employees’ behalf.

Under the current rules employees have to pay 13.07 percent of gross income earned in social security payments, while their bosses must chip in a further 35 percent.

In addition, the level of basic health care available for the self-employed is lower than for employees.

Self-employed people are not covered for so-called small risks like doctors and dentists fees and must take out supplementary insurance if they want these costs reimbursed.
But despite all of these drawbacks, the self-employment option can offer advantages for the increasing number of artists unable to find an employer who is willing to take them on legally.

So how does it work?

The first thing an artist who wants to work for him or herself must do is to tell the authorities. The law will still assume they are employees unless they say otherwise. To do this, they should contact their local social security office, which will point them in the right direction.

Once registered, the independent artist must pay a self-employed person’s social security charges. At present the rates are calculated as follows: 19.65 percent of professional income up to EUR 43,587.20; 14.16 percent of professional income between EUR 43,587.20 and EUR 64,238.84 and no charges on professional income exceeding EUR 64,238.84.

But beware, there is also a minimum payment of EUR1222.62 that artists must make however much they earn. This amount is calculated on a minimum salary of EUR8.924.24. So self-employed artists who earn less than this a year will still have to make the minimum payment.

In order to pay these charges, the artist should register as self-employed with a social insurance fund known as the 'social secretariat/secretariat social'.

As mentioned above, the artist will also have sign up with a health fund (Mutualiteit/Mutualité’) for supplementary private insurance.

What about working outside Belgium?

If a self-employed artist works for a short period in another European Union country they should in principle be allowed to continue making their social security payments in Belgium. EU law theoretically makes specific allowances for these kinds of cases. However as the system in Belgium is new and still largely untested, artists would be well advised to either talk to the social security authorities or an independent adviser before working elsewhere in the EU.

For work outside of the EU artists should definitely seek expert advice.

January 2004

Expatica would like to thank social security expert Wim De Buyser, an attorney at law for Loyens in Belgium for his help in preparing this article. He can be contacted at wim.de.buyser@loyens.com.

DISCLAIMER

While we take the utmost care to ensure the accuracy of all our articles, Expatica is not a professional career advice service. We will not accept responsibility if any of the information in this article is not correct.