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Many Belgians will see their wages increase sooner than expected, here’s why

  • Post category:Economy News
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LThe next overruns of the central index should finally occur in August and December next year, according to the latest monthly forecasts from the Federal Planning Bureau published on Tuesday. This is a month earlier than what was still expected at the beginning of June.

In March 2023, the central index would be exceeded again. This means that in almost a year and a half, benefits and public wages would be increased six times by 2% each.

The Federal Planning Bureau predicts that average annual inflation will be 8.5% this year. A month ago, the Planning Office still estimated inflation at 8.1%. Next year’s inflation rate is expected to be 4.4%, compared to 3.5% in the previous forecast. The last time the pivot index was exceeded was in April. Before that, there were also exceedances in December 2021 and February 2022.

If the central index is exceeded, benefits are increased by 2% one month later. Consequently, social allowances and salaries in the civil service have been adjusted to the cost of living, i.e. by 2%, respectively in May 2022 and June 2022. The index should be reached again in August and then in December, and again in March 2023.

The salaries of civil servants will not be the only ones to increase at the rate of inflation. High inflation also means higher wages in the private sector. However, the pace is different in each sector. For some this is done monthly, for others once a year.