The share of Belgium’s economic value allocated to employee wages has decreased since 2013, while remaining stable in the eurozone over the same period, according to the National Bank of Belgium (NBB).
The decline, observed across various sectors, is primarily attributed to a rise in productivity that has not been matched by equivalent increases in real compensation per hour, the NBB noted.
Measures such as the 2015 wage freeze and reductions in employer contributions since 2013 played a role.
The government has introduced policies to limit the rise in labour costs for companies.
Additionally, Belgium’s wage moderation system restricts wage increases beyond indexation.
The NBB warned that a falling wage share could impact the composition of gross domestic product (GDP), potentially reducing household consumption while encouraging corporate investment.
While a declining wage share is often linked to greater inequality, the NBB found no evidence of this in Belgium.
On the contrary, income inequality indicators suggest a decline over the past decade, likely influenced by a drop in unemployment.
