The federal government has agreed to cap the indexation of wages and benefits, Employment Minister David Clarinval announced on Wednesday.
The measure is a key decision of the multi-year budget agreement reached at the end of November, which had sparked widespread debate in both political and labour circles.
Under the new regulation, full indexation will apply to wages up to €4,000 gross per month and benefits or pensions up to €2,000 gross per month, but not beyond.
Only base salaries or contractual salary scales will be considered, excluding additional perks, to ensure uniform application.
Employers will contribute to support the effort required for salaries exceeding €4,000. These funds will be directed to the National Office of Social Security’s General Management to ensure its financing.
“The government is protecting purchasing power where it matters most while maintaining automatic indexation to shield incomes from inflation. This responsible action also strengthens the competitiveness of Belgian businesses, which is essential for driving investment, creating jobs, and ensuring higher wages and a robust social security system in the long term,” Clarinval emphasised.
The measure will take effect twice annually, starting next year. However, due to parliamentary approval delays, it will not apply to indexations expected in January or March, and general implementation will begin in 2027, continuing in 2028.
The decision aligns with the 1996 law on safeguarding businesses’ competitiveness, the minister says. Its impact will be assessed by the Central Council for the Economy in its reports on available wage margins during inter-professional agreements.
