Belgian wages will not outpace inflation in 2025 and 2026
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Belgium's Central Business Council (CRB) announced on Monday that the maximum available wage margin for 2025 and 2026 is 0 per cent. This means that wages will not be allowed to rise above inflation this year and next year.
In making this calculation, the CRB takes into account, among other things, expected inflation and how much wages are expected to rise in neighbouring countries, as well as checking that wages have not fallen behind those of major trading partners in recent years.
The CRB estimates the labour cost handicap - the difference between Belgium's hourly wage costs and those of its neighbours - at 1 per cent in 2024. This means that since 1996, wages in Belgium have risen 1 per cent faster than those in neighbouring countries that year. In 2023, the handicap was 2.7 per cent.
No more bonuses
Since 2023, the margin has been 0 per cent. In the last two years, however, companies that performed well were able to give their employees a purchasing power bonus.
Many companies took advantage of this system. According to the FPS Employment, 39,694 employers paid 1,079,455 employees a total of 397.9 million euros in premiums.
The CRB's calculation does not mean that wages will not increase in 2025 and 2026. The new federal government has not changed Belgium's automatic indexation, which guarantees that wages rise in line with inflation.
Union anger
Trade unions did not react positively to the news. "The wage norm law denies workers any prospect of sharing in the benefits of economic growth for the next two years," ABVV, ACV and ACLVB said in a joint statement.
They dispute the CRB's calculation of the labour cost handicap. Taking into account a number of reductions in employer contributions and wage subsidies, the unions argue that wages in Belgium have risen 2.4 per cent less than in neighbouring countries since 1996.
The three unions believe there is room for wage increases in many sectors and are calling for a reform of the law to facilitate this. "Workers keep the economy going day after day, they should be rewarded for that," said Bert Engelaar, general secretary of the ABVV.
© PHOTO IMAGO
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