# The India Employee Benefits Stack for Belgian companies

> Belgian parents expect compulsory social insurance, a group insurance pension, hospitalisation cover for the family and double holiday pay. In India only the pension has a statutory match. Health cover must be bought and designed, gratuity must be funded from day one, and whether to cover parents is the decision that moves the premium most.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/belgium. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- India has no equivalent of Belgian compulsory health insurance for salaried staff above ₹21,000 a month. Hospitalisation insurance maps to Group Health Insurance, which is voluntary in law but the base layer in practice.
- Group insurance (groepsverzekering / assurance de groupe) maps to EPF at 12% + 12% of basic plus Group Term Life, and the closest Indian long-service payment is statutory gratuity after five years. Double holiday pay has no Indian equivalent.
- Since 21 November 2025, if allowances excluded from wages exceed 50% of total remuneration, the excess is added back for EPF and gratuity. A Belgian package of a modest base plus many extras needs checking before it is copied.

## Questions

### Is there an equivalent of Belgian hospitalisation insurance in India?

Group Health Insurance (GHI) is the closest match, but it plays a bigger role. India has no statutory health cover for salaried staff earning more than ₹21,000 a month; below that line ESI applies, at 3.25% employer and 0.75% employee. GHI is not legally required, yet candidates hired at ₹8 LPA and above expect it, and it is their base layer of cover.

### Do we have to pay double holiday pay in India?

No. Indian law has no holiday pay or holiday bonus. Leave is set by state Shops and Establishments Acts or the Factories Act, typically 12 to 18 days of earned leave plus casual and sick leave. The only statutory bonus is for employees earning up to ₹21,000 a month, at 8.33% to 20%. Anything else is a contractual choice.

### Do Belgian secondees have to contribute to EPF?

Not if they hold a certificate of coverage under the India–Belgium social security agreement, in force since 1 September 2009, for postings of up to 60 months. Without one they are International Workers and must join EPF from day one with contributions on full salary; the ₹15,000 wage ceiling does not apply. Apply for the certificate before the posting starts.

### What replaces group insurance (groepsverzekering) in India?

Two things. EPF is the statutory pension layer: 12% of basic plus DA from the employer, 8.33% of it to EPS, and 12% from the employee. Death cover moves to Group Term Life, commonly 3 to 5 times CTC for white-collar staff, on top of EDLI's statutory cover of up to ₹7 lakh. Gratuity, capped at ₹20 lakh, is the statutory lump sum.

### How does the Labour Codes' 50% rule affect a Belgian-style package?

Since 21 November 2025, if the allowances excluded from 'wages' exceed 50% of total remuneration, the excess is added back into wages for EPF, gratuity and other statutory calculations. A package that keeps base pay modest and adds many extras will carry higher EPF and gratuity costs in India than expected. Model the structure before issuing offer letters.

## What changes when you come from Belgium

### Assignees from Belgium and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**Belgium and India.** India and Belgium have a social security agreement in force since 1 September 2009, the first India signed. Staff seconded from Belgium for up to 60 months with a certificate of coverage stay in the Belgian scheme and are exempt from Indian EPF. Get the certificate before the first Indian payroll run.

### Mapping Belgian benefits to India

**At home.** Employer social security of around 25% of gross pay, a group insurance pension with death cover, hospitalisation insurance often extended to family, double holiday pay worth 92% of a month's salary for white-collar staff, a year-end bonus set by the joint committee, and meal vouchers.
**In India.** Group Health Insurance (GHI) for health, EPF for pension and Group Term Life (GTL) for death cover. Gratuity is statutory: fund it through an insured gratuity scheme. Double holiday pay and meal vouchers have no statutory Indian equivalent, and the statutory bonus applies only up to ₹21,000 a month.

### Overlap between Brussels and India

**Time difference.** India is 3½ hours ahead of Brussels during Belgian summer time (late March to late October) and 4½ hours ahead in winter. India has no daylight saving, so the overlap shifts twice a year; Brussels mornings meet Indian afternoons.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–Belgium tax treaty

**Treaty.** India and Belgium have a double taxation avoidance agreement in force since 1 October 1997, amended by a protocol on exchange of information in force since 26 June 2025. Short visits are usually exempt from Indian tax under its 183-day and employer conditions; check the exact article before relying on it.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in Belgium, and what it is called in India

In Belgium every employee has compulsory health insurance through a mutualité or ziekenfonds, and the employer's hospitalisation insurance tops it up. In India there is nothing underneath. A salaried employee earning more than ₹21,000 a month has no statutory health cover, and below that line sits ESI, a government scheme. The employer's Group Health Insurance (GHI) is not a supplement to a public scheme: it is the first layer, and often the only one. That difference shapes most of a Brussels or Antwerp HR team's first-year questions about India.

| At home in Belgium | In India | What changes for the employer |
| --- | --- | --- |
| Compulsory health insurance (Verplichte ziekteverzekering · Assurance soins de santé obligatoire): Public health insurance through a mutualité or ziekenfonds, funded by social security contributions, with a patient co-payment on most care. | ESI for employees earning up to ₹21,000 a month gross | ESI costs 3.25% employer and 0.75% employee, and only below the ceiling. Above it the employer's statutory health obligation is zero, so most salaried staff rely on employer-bought GHI for hospital care. |
| Hospitalisation insurance (Hospitalisatieverzekering · Assurance hospitalisation): Employer-paid group cover for hospital costs above public reimbursement, often extendable to family members. | Group Health Insurance (GHI) | Not legally required, but candidates hired at ₹8 LPA and above expect it. Minimum group size is 7 with most insurers. India's median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000. Parents are about 40% of claims by relationship in Plum's data. |
| Group insurance (second-pillar pension) (Groepsverzekering · Assurance de groupe): Employer-funded supplementary pension, usually with death cover, under the Supplementary Pensions Act (WAP/LPC) and run by an insurer. | EPF and EPS for pension; Group Term Life (GTL) for death cover | EPF is statutory at establishments with 20+ employees: 12% of basic plus DA from the employer (8.33% to EPS) and 12% from the employee. Death cover moves to GTL, commonly 3 to 5 times CTC, on top of EDLI's statutory cover of up to ₹7 lakh. |
| Social security contributions (RSZ-bijdragen · Cotisations ONSS): Around 25% of gross pay from the employer and 13.07% from the employee, covering pensions, health care, unemployment and family benefits. | EPF (12% + 12%), ESI (3.25% + 0.75%) below ₹21,000 a month, and gratuity provision | India's statutory bill is split across separate schemes with separate thresholds. For staff above the ESI ceiling, EPF and gratuity are the main statutory costs, and health cover is a voluntary premium on top. |
| Double holiday pay (Dubbel vakantiegeld · Double pécule de vacances): Extra holiday allowance worth 92% of a month's gross salary for white-collar employees, on top of normal pay during leave. | No equivalent | Nothing is owed by law. If the group keeps it, pay it as a contractual annual payment and test the whole package against the Labour Codes' rule that excluded allowances above 50% of total remuneration are added back into wages for EPF and gratuity. |
| Year-end bonus (Eindejaarspremie · Prime de fin d'année): A 13th month or year-end premium, owed where the joint committee (paritair comité / commission paritaire) or the contract provides it. | Statutory bonus under the Payment of Bonus Act (8.33% to 20%) plus any contractual bonus | The statutory bonus applies only to employees earning up to ₹21,000 a month. Above that, a year-end payment is contractual. Write it into the offer letter so it is clear whether it is guaranteed. |
| Meal vouchers (Maaltijdcheques · Chèques-repas): Vouchers worth up to €10 per working day from 1 January 2026, with the employer paying up to €8.91, exempt from tax and social charges within limits. | No statutory equivalent; meal cards or a subsidised canteen are voluntary perks | Meal benefits are optional in India. Treat them as part of the total package rather than an entitlement, and include them when testing the structure against the Labour Codes' 50% wage rule. |
| Statutory annual leave (Wettelijke vakantie · Vacances annuelles): 20 days a year for a full-time five-day week, earned on the previous year's work. | Earned leave under the state Shops and Establishments Act (offices) or the Factories Act (factories) | Earned leave is typically 12 to 18 days a year, plus separate casual and sick leave. Public holidays vary by state, with three national holidays. A Belgian-style leave policy is a choice, not a requirement. |
| Maternity leave (Moederschapsrust · Congé de maternité): Maternity leave paid through the health insurance fund (ziekenfonds or mutualité), not by the employer. | Maternity Benefit Act: 26 weeks of full pay for the first two children, 12 weeks from the third; no statutory paternity leave under central law | In India the employer pays the salary (ESI covers it for ESI members). A crèche is required at 50+ employees. GHI covers the hospital bill: about ₹1 lakh for a normal delivery, ₹1.25 lakh for a C-section. |
| Work-accident insurance (Arbeidsongevallenverzekering · Assurance accidents du travail): Compulsory employer-paid insurance with a private insurer, covering accidents at work and on the way to work. | Employees' Compensation Act 1923 (or ESI where covered) plus Group Personal Accident (GPA) | The Employees' Compensation Act covers employees who are not in ESI, and the employer insures it. GPA is the usual voluntary add-on for accidental death and disability. |

## What Belgian companies get wrong when they set up in India

1. **Hospitalisation insurance tops up public cover, so the base is covered.** Above ₹21,000 a month India has no public base. Group Health Insurance is the whole safety net up to its sum insured. India's median is ₹5,00,000; global startups in India carry ₹10,00,000. Size the cover as primary, not as a top-up.
2. **Double holiday pay is statutory, so India will have an equivalent.** India has no holiday pay or holiday bonus law. Leave is set by state Shops and Establishments Acts or the Factories Act, and only employees earning up to ₹21,000 a month are owed a statutory bonus, of 8.33% to 20%.
3. **A modest base with many extras is the efficient structure.** Since 21 November 2025, if allowances excluded from 'wages' exceed 50% of total remuneration, the excess is added back for EPF, gratuity and other statutory calculations. A Belgian-style package of extras can raise the statutory bill rather than lower it.
4. **Group insurance is a voluntary extra, so India's pension is too.** EPF is statutory at establishments with 20+ employees: 12% of basic plus DA from the employer and 12% from the employee. Most MNC subsidiaries contribute on full basic rather than the ₹15,000 statutory wage ceiling.
5. **Long-service payouts are contractual and can be decided later.** Gratuity is statutory at establishments with 10+ employees: 15 days' last drawn salary per year of service after five years, one year for fixed-term staff, capped at ₹20 lakh. Provision it from the first payroll and insure it through a gratuity scheme.
6. **Family cover means spouse and children.** In India, parents are the largest claims category by relationship, about 40% of claims in Plum's data. Decide early whether parents are covered and who pays that share of the premium.
7. **Maternity pay comes from the health insurance fund, as at home.** In India the employer pays 26 weeks of full pay for the first two children and 12 weeks from the third, unless the employee is in ESI. GHI then covers the hospital bill: about ₹1 lakh for a normal delivery, ₹1.25 lakh for a C-section.
8. **Seconded staff stay on Belgian social security automatically.** Only with a certificate of coverage under the India–Belgium agreement, for up to 60 months. Without it they are International Workers and join EPF from day one on full salary, with no ₹15,000 ceiling.

## Belgium vs India, benefit by benefit

| Benefit | Belgium | India |
| --- | --- | --- |
| Statutory health cover | Compulsory health insurance through a mutualité or ziekenfonds for all employees. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Employer social security | Around 25% of gross pay, plus 13.07% from the employee. | EPF at 12% of basic plus DA; ESI at 3.25% below ₹21,000 a month; gratuity provision. |
| Private health cover | Hospitalisation insurance tops up public reimbursement, often with family cover. | GHI is the base layer, not a top-up. Not legally required; minimum group size 7 with most insurers. |
| Supplementary pension | Group insurance (second pillar) under the Supplementary Pensions Act. | No second pillar required. EPF and EPS are the statutory pension layer. |
| Death cover | Usually built into group insurance. | EDLI up to ₹7 lakh; Group Term Life at 3 to 5 times CTC is common for white-collar staff. |
| Long-service lump sum | Group insurance capital, paid at retirement. | Gratuity, statutory after five years: 15 days' last drawn salary per year, capped at ₹20 lakh. |
| Holiday pay | Double holiday pay of 92% of monthly gross for white-collar staff. | None. Leave is paid at normal salary. |
| Annual leave | 20 days a year for a full-time five-day week. | Earned leave typically 12 to 18 days a year, plus casual and sick leave. |
| Year-end bonus | 13th month or year-end premium where the joint committee or contract provides it. | Statutory bonus of 8.33% to 20% up to ₹21,000 a month; otherwise contractual. |
| Meal vouchers | Up to €10 per working day from 2026, exempt from tax and social charges within limits. | No statutory equivalent; meal cards or canteens are voluntary perks. |
| Maternity | Paid through the health insurance fund. | Employer pays 26 weeks of full pay (12 from the third child). No statutory paternity leave under central law. |
| Work accidents | Compulsory employer-paid insurance with a private insurer. | Employees' Compensation Act for employees not in ESI, insured by the employer; GPA voluntary. |

## Staff seconded from Belgium

Seconded staff usually keep a Belgian or international health plan, but an India-admitted GHI is still worth adding: it gives cashless admission at network hospitals without an advance deposit. Under the India–Belgium agreement, in force since 1 September 2009, a secondee with a certificate of coverage stays in Belgian social security for up to 60 months and is exempt from EPF. Belgians hired locally in India are International Workers and join EPF from day one on full salary.

## Where Belgian companies set up in India

- **Mumbai and Thane, Maharashtra.** India offices of Solvay, UCB, Umicore, Puratos and Ageas Federal Life Insurance. The Bharat Diamond Bourse ties Mumbai to Antwerp's diamond trade.
- **Pune and Satara, Maharashtra.** Umicore's automotive catalyst plant at Shirwal and Bekaert's steel wire plant near Pune. Plant workforces mean ESI up to ₹21,000 a month and the Employees' Compensation Act above it.
- **Bengaluru, Karnataka.** AB InBev's global capability centre and other technology teams. White-collar hiring at ₹8 LPA and above, where candidates expect GHI in the offer.

Belgian companies with operations in India include AB InBev, Solvay, UCB, Umicore, Bekaert, Barco, Ageas, Puratos.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: National Social Security Office (RSZ/ONSS), administrative instructions: contribution rates (13.07% employee); Royal Decree of 30 March 1967 on annual holidays of employees (holiday pay and double holiday pay); Royal Decree published in the Belgian Official Gazette on 17 November 2025: meal voucher maximum of €10 from 1 January 2026; Embassy of India, Brussels: India–Belgium bilateral brief, September 2026; India–Belgium Social Security Agreement (signed 3 November 2006, in force 1 September 2009); India–Belgium Double Taxation Avoidance Agreement (in force 1 October 1997) and Amending Protocol in force 26 June 2025, CBDT Notification 160/2025; Code on Social Security 2020 and Code on Wages 2019, in force 21 November 2025.