Higher pay increases in Belgium than in neighbouring countries for 2018
Tuesday, 12 December 2017
It emerges from the annual wage study, by Korn Ferry Hay Group (KFHG), that Belgian companies are anticipating a more significant wage increase in Belgium than in neighbouring countries during 2018. They are counting upon an increase of 3.1% in Belgian wages, compared to 2.5% in Germany and the Netherlands, and 1.7% in France.
The cause of this could be automatic wage indexation and scale increases, and the low rate of employment for the over 55s, as well as a labour market shortage.
Sonja Brouwers, Senior Consultant with KFHG, stresses that Eurostat figures reveal Belgium performing worse in terms of economic growth (only +1.4%) than Germany (with +2.1%) or the Netherlands (having +2.2%). The rate of unemployment is also lower in the latter two countries.” She goes on, “Despite that, neighbouring countries still succeed in maintaining better control over wage increases. If we in Belgium continue along the same path as at present, we will again risk seeing our wage handicap increase.”
The global study is based upon data from PayNet. This is part of KFHG. PayNet itself integrates data from more than 16 million employees, coming from more than 24,000 organisations (including 550 Belgian companies) within 110 countries.