The popularity of cryptocurrencies continues to grow. Today, some companies already invest in Bitcoin or other cryptocurrencies. Some employers are also exploring innovative ways to remunerate their employees. A bonus in Bitcoin or even partial payment of a salary in crypto may sound attractive to many.
However, caution is needed! A ruling by the Antwerp Labour Court of Appeal makes it clear that paying employees in crypto involves significant legal and financial risks. Employers who pay in crypto may even risk having to pay the same salary twice!
Can an employer pay an employee in crypto?
Under Belgian wage legislation, an employee's salary must be paid in money, in a currency that is legal tender in Belgium. Unlike the euro, Bitcoin and other cryptocurrencies do not meet this requirement.
The Antwerp Labour Court of Appeal confirmed this principle in a ruling of 6 March 2024. In the case concerned, an employee had received his commission in Bitcoin. After his employment contract ended, he claimed payment of the same commission again, this time in euros.
The Court ruled in favour of the employee: payment in Bitcoin does not legally constitute a valid salary payment. The salary was therefore considered never to have been paid.
Paying salaries in crypto remains problematic, even with the employee's consent
A written agreement from an employee accepting payment of their salary in crypto is not sufficient.
The Labour Court of Appeal points out that the legislation governing how salaries must be paid is a matter of public policy. In practice, this means that employers remain obliged to pay salaries in legal tender, even when an employee expressly agrees to receive payment in crypto.
An email or agreement in which the employee confirms having received the Bitcoin therefore does not provide adequate legal protection.
The biggest risk: the salary remains payable
When an employer pays a salary exclusively in crypto, the employee may subsequently demand payment of the same salary in euros.
The cryptocurrencies previously transferred are not considered a legally valid salary payment.
In addition, employers may face statutory interest, legal costs and possible penalties for breaching wage legislation.
Can crypto still form part of a remuneration package?
The ruling does not, in itself, prohibit employees from receiving cryptocurrencies from their employer. However, it makes clear that crypto can never replace the salary owed.
Additional crypto bonuses also require caution. Simply awarding a bonus on top of the contractual salary or describing it as discretionary does not automatically mean that payment in crypto is permitted under employment law. The tax and social security treatment must also be assessed separately.
When an employee receives cryptocurrencies in connection with their employment, these generally constitute a taxable benefit in kind. This benefit is valued at its actual value in euros for the employee at the time of payment or taxable allocation. In the case of an ordinary transfer of freely available cryptocurrencies, the market value at the time of transfer will generally be decisive. The employer must carefully document the exchange rate used and the valuation date and time, and correctly record the benefit in the payroll administration.
The volatility of cryptocurrencies can also have unpleasant consequences. For example, if an employee receives cryptocurrencies worth €2,000 and their value subsequently falls to €1,200, this decrease does not reduce the taxable benefit originally received.
A crypto bonus awarded in connection with employment is, in principle, also subject to the usual employer and employee social security contributions. The employer must also account for the applicable payroll withholding tax.
If the employee later sells the cryptocurrencies at a profit, that sale must be assessed separately for tax purposes. Since 1 January 2026, capital gains tax at a rate of 10% may apply where the sale falls within the normal management of private assets, taking into account the available exemptions. Different tax rules may apply to speculative or professional transactions.
Conclusion
Interest in crypto as a form of remuneration continues to grow, but Belgian legislation currently does not allow salaries to be paid in Bitcoin or other cryptocurrencies.
The ruling by the Antwerp Labour Court of Appeal confirms that payment in crypto does not constitute a legally valid salary payment. Employers therefore risk having to pay the same salary twice.
Companies that nevertheless wish to introduce separate crypto incentives are advised to have their remuneration policies reviewed from both a legal and tax perspective beforehand.
Do you have questions about paying employees in crypto, the tax treatment of crypto remuneration or the legal structuring of an innovative remuneration policy? Do not hesitate to contact one of our specialists.
