Belgium Maintains Unenviable Position with Highest Tax Burden on Single Workers

Brussels, Belgium: In the latest edition of Taxing Wages published by the OECD, Belgium stands out as the sole member country where more than half of a gross salary is claimed by the taxman. 

Despite a slight decrease in the tax wedge since 2000, Belgium’s burden on employed single individuals remains alarmingly high, exceeding even the levels seen in 2019, despite political assurances of relief.

For single, childless workers, the tax wedge in Belgium looms at a staggering 52.7%. This implies that out of every €100 an employer pays, only €47.3 finds its way into the worker’s pocket, while a hefty €52.7 is funneled into the state’s coffers. 

Such a figure places Belgium at the bottom of the list, with no other OECD country even coming close to matching its tax burden.

According to Stijn Baert, a labor economist at UGent, Belgium’s performance is abysmal compared to the OECD average of 34.8% in 2023. 

The gap between Belgium and its neighbors is also notable, with a five percentage point difference existing between Belgium and Germany, the second-ranked country with a tax wedge of 47.9%.

Baert highlighted the contrasting scenario in neighboring countries, pointing out that in the Netherlands, approximately €65 out of every €100 of wage cost translates into a worker’s net income, nearly €20 more than in Belgium’s case.

Despite promises made during electoral campaigns in 2019 to alleviate the tax burden and make work more rewarding, little progress has been made. 

The tax wedge for the average single worker in Belgium did experience a slight decrease from 53% in 2022 to 52.7% in 2023, likely due to the indexation of tax brackets. 

However, it still remains higher than the level observed in 2019 when it stood at €52.3, despite assurances of improvement.

Finance Minister Vincent Van Peteghem had outlined a plan aimed at reducing the tax wedge below the 50% mark. While this would have still left Belgium at the bottom of the class, it would have at least narrowed the gap with the second-ranking country.

Meanwhile, Belgium’s neighbors have been making strides in improving the attractiveness of working in their respective countries. 

The Netherlands witnessed a reduction in the tax wedge from 36.9% to 35.1%, while Germany saw a decline from 49.3% in 2019 to 47.9%.

In essence, while Belgium struggles to alleviate the heavy tax burden on its single workers, its neighbors are making tangible progress in creating a more favorable environment for employment. 

The persistent gap in tax wedges between Belgium and its neighboring countries only serves to exacerbate the issue, highlighting the urgent need for meaningful reform to ensure that work truly pays in Belgium.

This article was created using automation and was thoroughly edited and fact-checked by one of our editorial staff members