What does payroll administration cost? Comparing prices in 2026
You want to hire staff, but what does that payroll administration actually cost? A social secretariat, payroll, doing it yourself. The options are plentiful, and the prices? Anything but transparent. Read our article on calculating labour costs too, for the full cost of an employee.
In this article, we compare the costs. Spoiler: there is no single "cheapest" option. Only the option that fits your situation.
Your options at a glance
You have four main choices for payroll administration in Belgium:
Social secretariat The classic Belgian approach. An accredited secretariat takes over your entire payroll administration.
Payrolling Legal employer status is outsourced. You select the people, the payroll company pays them. You will find more on this in our article on payroll as an intermediary.
Doing it yourself With the right software, you can run your own administration.
A combination Because who says you have to choose? Permanent staff through the social secretariat, flexible workers through payroll.
Each has its price. And its pitfalls.
Social secretariat costs
Most Belgian employers opt for a social secretariat. The costs? They are made up of several components.
Membership One-off or annual. On average, around €80 per year. It covers the setup of your file.
Cost per employee The core of the price. On average, €40-50 per employee per month.
This varies a lot depending on your situation:
- The size of your company (more employees = better rates)
- Complexity (flexi-jobs and students? It gets more expensive)
- Multiple joint committees? Also pricier
- Service package (the basic one often isn't enough)
Software Many secretariats charge separately for their digital tools. Around €100-200 per year for the basics. Want extensive analytics or employee self-service? Then you pay more.
Extra services Specific certificates, legal advice beyond the standard, complex calculations. These can add extra costs.
And that "can" is usually "will".
Example: 10 employees
| Component | Cost per year |
|---|---|
| Membership | €80 |
| 10 employees × €45/month | €5,400 |
| Software | €150 |
| Total | ~€5,630/year |
In other words: about €563 per employee per year. Or €47 per month.
Example: 50 employees
At larger volumes, you can negotiate. Say you push the rate down to €38 per employee:
| Component | Cost per year |
|---|---|
| Membership | €80 |
| 50 employees × €38/month | €22,800 |
| Software | €500 |
| Extra services | €1,000 |
| Total | ~€24,380/year |
Per employee: ~€488/year. Or €41/month.
Scale works.
Payrolling costs
With payroll, you don't pay a separate amount for payroll administration. The cost is built into the factor.
What does that mean?
The factor explained Payroll companies work with a conversion factor, usually between 1.65 and 1.82.
You pay: gross salary × factor = your total cost
That factor includes:
- The employee's gross salary (logically)
- Employer NSSO (National Social Security Office) contributions (around 25%)
- Holiday pay and end-of-year bonus (accrued pro rata)
- Administration costs (their margin)
- A risk surcharge for illness, dismissal, and other surprises
- And yes, their profit
Comparison with paying staff yourself If you pay staff yourself, your factor is roughly 1.55-1.65. With payroll, you pay 1.65-1.82.
The difference? Around 5-15%. That's the price for being completely unburdened.
Example: €15/hour gross
| Method | Factor | Cost per hour |
|---|---|---|
| Paying staff yourself | 1.60 | €24.00 |
| Payroll | 1.75 | €26.25 |
| Difference | €2.25 (+9%) |
At 1,700 hours per year: €3,825 in extra costs via payroll.
A lot? Maybe not.
When does payroll pay off? Those extra costs are offset by what you save:
- Your own workload (on average 2-4 hours/month per 5 workers)
- Investments in knowledge and software (which keep coming, they aren't one-off)
- Transferred risks (illness, dismissal, mistakes)
- No surprises with holiday pay
- No second-guessing whether you're doing it right
Doing it yourself
In theory, the cheapest option.
But factor in your own time too. And the stress.
Software Payroll software costs €20-80 per month, depending on features and the number of workers. That's manageable.
Your own time Count on 2-4 hours per month per 5 workers. More in complex situations (and those do come up). At a staff cost of €50/hour, that's €100-200 per month.
Training Keeping up with legislation requires regular upskilling. €500-1,500 per year. Because Belgian labour law never stands still.
Risk of mistakes Errors in NSSO declarations or salary calculations can turn out expensive.
How expensive? Fines, wage claims, corrections. And your employee's trust when their payslip is wrong.
Example: 10 employees, doing it yourself
| Component | Cost per year |
|---|---|
| Software | €600 |
| Your own time (3 hours/month × €50) | €1,800 |
| Training | €500 |
| Total | ~€2,900/year |
Per employee: €290/year. Cheaper than a secretariat.
But with a significant investment of time and risk. If you can handle it.
The hidden costs
With every option, there are costs that aren't immediately visible.
Social secretariat:
- Extra services outside the basic package (and you need them more often than you'd think)
- Costly calls to the "helpdesk" (waiting times not included)
- Annual indexation of rates (self-evident, right?)
Payroll:
- A higher factor than quoted (read the small print)
- A surcharge for short assignments (because those cost them more)
- An administration cost per contract
- Sometimes a minimum invoice per worker
Doing it yourself:
- Stress and uncertainty (lying awake at night over NSSO declarations)
- Time for troubleshooting (a lot of time)
- The cost of mistakes (possibly the most expensive of all)
Always ask for a complete cost overview. Including all possible additional costs. And keep asking.
What determines the price?
Why does company A pay more than company B?
Number of employees Scale drives down the price per employee. Negotiate as you grow. They want to keep you.
Types of contract Permanent contracts are simpler than a mix of flexi-jobs, students, and fixed-term deals. Every exception costs time.
Joint committees Multiple joint committees increase complexity. Each one has its own rules for holiday pay, end-of-year bonus, and mileage allowance. Some sectors (construction, hospitality) are inherently more complex. And more expensive. Read more about joint committees in our article on the joint committee in Belgium.
Turnover Lots of hires and departures mean more administration. Every Dimona (immediate employment declaration), every contract, every final settlement has a cost.
Digitalisation Companies that enter their own data through a portal often pay less. Logical. Less work for the secretariat.
Comparison table
| Criterion | Social secretariat | Payroll | Doing it yourself |
|---|---|---|---|
| Cost/employee/year | €400-600 | €500-800 (indirect) | €200-400 |
| Time investment | Low | Very low | High |
| Expertise needed | No | No | Yes |
| Employer risk | With you | With payroll company | With you |
| Suitable for | Everyone | Flexible staff | Small, simple |
Which option fits you?
Choose a social secretariat if:
- You have permanent staff
- You want certainty without becoming an expert yourself
- You have the budget for professional service
- You want to sleep without thinking about NSSO percentages
Choose payroll if:
- You have lots of temporary or flexible workers (read also: need temporary staff)
- You don't want any HR administration (really, none)
- You want to outsource risks
- The extra costs are offset by the time saved
- You want the flexibility to scale staff up quickly
Choose doing it yourself if:
- You're very small (1-3 workers, no more)
- You have simple, permanent contracts
- You have the time and interest to learn it (and to keep learning)
- You consciously accept the risk
- Honestly, think this through carefully. It looks cheap until it no longer is.
Combinations
This is where it gets interesting.
Many companies combine. Permanent staff through the social secretariat (lower cost per employee), flexible workers through payroll (no administration).
This is often the most cost-efficient approach for SMEs with a mixed workforce. You only pay for what you need.
At Recruit, we focus specifically on the flexible layer: temporary work, seasonal work, projects. The permanent core? Just leave that with your social secretariat.
In short
Payroll administration costs money, however you go about it.
A social secretariat asks €40-50 per employee per month. Payroll costs 5-15% more than paying staff yourself, but takes over all the administration. Doing it yourself looks cheap, but it costs time and brings risks. More risks than you think.
The best choice? That depends on your company size, the type of staff, and how much you want to do yourself. There is no universal answer. Only the answer that fits your situation, right now.
How Recruit helps you
Not keen on puzzling over NSSO percentages and holiday pay yourself? We get it.
With Recruit:
- Contracts in under 60 seconds: create trial and temp contracts without the hassle
- Automatic salary calculation: correct pay in line with current legislation and your joint committee
- Dimona and social documents: we handle all the declarations, you focus on your business
- 24/7 personal support: always a dedicated contact who knows your company
- No fixed monthly costs: pay only for what you use
Try Recruit or get in touch with our HR experts for tailored advice.
Frequently asked questions
What is the cheapest social secretariat?
There is no clear-cut answer. Rates depend on your situation.
Request quotes from several secretariats and compare the total package. Not just the price per employee. What's included? What costs extra?
Can I negotiate the price?
Yes. Certainly at larger volumes.
As you grow, you can renegotiate. Compare with other providers regularly. They know you have options.
Are the costs deductible?
Yes, payroll administration costs are business expenses and tax-deductible. One of the few upsides.
What does it cost to switch secretariats?
The switch itself is usually free. Secretariats want you as a client.
There can, however, be a start-up phase with double costs (closing the old file, setting up the new one). Plan this carefully.
The information in this article is purely informative and does not replace professional legal or accounting advice. Labour law changes regularly. Always consult the current legislation or contact an HR expert for advice tailored to your situation.