Tech federation calls for cap on indexation of highest wages

Tech federation calls for cap on indexation of highest wages
Credit: Hatim Kaghat/Belga.

Agoria, one of the biggest employer federations in the tech industry, has advocated for a change to the automatic indexation mechanism for salaries, by including a cap on the highest earnings.

In a statement released on Wednesday, Agoria claimed that 2,000 Belgian tech companies will face a significant disadvantage compared to their counterparts in neighbouring countries, due to the indexation of salaries.

The federation attributes this to the wage handicap, the existing gap between different countries' salaries, between them that will rise by at least 14% in 2023. Furthermore, the labour costs for the companies they represent will apparently climb by €6 billion.

As a result, Agoria's CEO Bart Steukers wants the automatic indexation mechanism to be reformed and for a cap on the indexation of the highest earnings to be put in place.

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"We may completely index the lowest earnings and then just adopt partial indexation from a set pay level, with no extra indexation from the highest level," Steukers proposed, as he views it as the best solution to counter the increased costs companies face due to indexation.

As Agoria is the largest tech organisation within the Federation of Belgian Enterprises (VBO), authorities have a vested interest in listening to their position on the matter.


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