The maximum available wage margin for this year and the next is 0%, according to calculations by the Central Economic Council (CCE). That means wages are not allowed to rise on top of the index.
For the past two years too, the margin was 0% as well. However, companies that performed well could then grant a purchasing power premium.
Among other things, the CEC takes into account expected inflation and how much wages are expected to rise in neighbouring countries for that calculation. The council also checks that wages have not been derailed in recent years compared to major trading partners.
The labour cost handicap (the difference in hourly wage costs in Belgium versus our neighbouring countries) is estimated at 1% by the CEC for 2024. That means that by 2024, since 1996, wages in Belgium will have risen 1% faster than those of neighbouring countries. In 2023, that handicap was still 2.7%.
The wage margin report marks the start of wage negotiations. Unions and employers will then negotiate not only wages but also, for example, unemployment with single payment schemes (SWT).
Wages may still rise in line with inflation. The automatic indexation in Belgium guarantees that wages rise with them as life gets more expensive. The new Federal Government also continues to guarantee that principle.
