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Maximum deduction from salary

Last activity 18 February 2022 by Bel_expat

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Bel_expat

Hello, I’m facing a tax related problem which could be discussed in another topic - an ihnorance problem at both sides.

As a result my company decided to act retroactively and deduct all difference from my salary at once. The amount is 2/3 of my salary. Is this allowed by Laws? The left amount is lower than minimum wage, not enough for a family. I have savings so it will be ok but I can’t believe that it is legal to do that.

I would appreciate if you can refer to regulation / quote.

Thank you

alia2022

Hi Bel_expat, I can't speak on the legal side of things but I can just say that I share your confusion/pain because this has happened to me on multiple occasions - months with double my salary, months with almost 0, with no or little explanation except 'tax being recalculated'.. Not sure what options there are but in my view the employer should step in and make sure employees get a regular salary, no matter how (i.e. by pre-financing and making one final calculation per year or similar)

Bel_expat

Thank you very much for your support 🙏🏻

Aneesh

In any case, you will not lose any money. If they took extra from you (as a result of pre-calculation), you wil get it back with your annual tax return.

Bel_expat

Hi, that's a more complicated case, I explained in another discussion here  https://www.expat.com/forum/viewtopic.p … 65#5341387

If this is not solved, I will lose money.

Aneesh

I would suggest discuss with an accountant with expertise in special tax regime, what your options are.

SimCityAT

Bel_expat wrote:

Hi, that's a more complicated case, I explained in another discussion here  https://www.expat.com/forum/viewtopic.p … 65#5341387

If this is not solved, I will lose money.


Why start 2 threads? It only makes it members harder to keep track.

Bel_expat

Those are 2 different topics. This one is about labor law. The other is on special tax regime.

Bel_expat

Thank you, my firm is talking with big4.

Bel_expat

Update: I was correct in my claim and my company paid back the deducted mıney, for now as an advance, until the reason of deduction will be clear.

Labor law limits deductions by max 20%, unless you are a fraudster etc. I learned that many payroll systems don’t have this control in Belgium. Don’t hesitate to question odd things and check your rights!

SimCityAT

Bel_expat wrote:

Those are 2 different topics. This one is about labor law. The other is on special tax regime.


You keep both questions on the same friend instead of telling people to go to another thread!!!!

SimCityAT

Bel_expat wrote:

Update: I was correct in my claim and my company paid back the deducted mıney, for now as an advance, until the reason of deduction will be clear.

Labor law limits deductions by max 20%, unless you are a fraudster etc. I learned that many payroll systems don’t have this control in Belgium. Don’t hesitate to question odd things and check your rights!


Oh look you got your money back like you were told.

Bel_expat

Dear SimCity,

I don't understand why those are not clear for you:
- Maximum deduction from salary: this can happen for any reason. In my case there was a tax dispute, but it doesn't matter. My question was to get information/experience on the Belgian Labor Law. My company insisted that there was no problem in cutting my salary by 80%.. Anyway I read regulations myself, found the articles, contacted unions and at the end convinced my employer that what they did - deducting 80% is illegal. That's why now they paid back the difference as ADVANCE. I'll pay that back in several months. So it is not as you said "see you were paid as you were told..". I'm well educated and knowledgeable in law and policies and could understand that what they did is not correct. In forums there are junior friends and I'm warning them in case they face a similar problem. "Maximum deduction from salary" thread was opened for this reason and approved.

- Special tax regime: I was not aware and learned that, in case you applied to special tax regime, even if it is not yet approved, you shall not fill in/process the tax return file in "brown envelope". I did this mistake and now my special tax regime benefits are taken retroactively. I wanted to check is anyone faced this situation and wanted to warn people again. That was the reason to open "Special tax regime" thread. On the other hand I did my rejections and my claim is under consideration. It is not yet clear that "I will be paid back".
This is a summary for you and not a topic for this thread.

Hope it is clear.

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