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Salary: an indexation of 11.6% for a million workers

  • Post category:Economy News
  • Reading time:5 mins read

In sectors where wages are only indexed once a year, wages are expected to increase by 11.6% in January 2023.

Reading time: 2 mins

Linflation rose from 11.27% to 12.27% in October, its highest level since June 1975 (12.50%), the Belgian statistical office Statbel announced on Friday. As a result, the salaries of around one million workers should be indexed by 11.6% next January, according to an estimate by SD Worx.

Who is concerned ?

Sectors where wages are indexed once a year, often from January, such as the CP200 (Joint Commission), which has nearly 60,000 companies and 500,000 employees, are moving towards this indexation of more than 10% in January 2023. In addition to CP200, indexation should also reach the 11.27% announced in the hotel and catering industry (CP 302), the food industry (CP 118 and 220), road transport for third parties (CP 140.03) and international trade, transport and logistics (CP 226).

On the other hand, in the sectors where wages are indexed when the pivot index is exceeded, the indexations take place immediately and can sometimes be linked together. Thus, in the health sector (hospitals, rest and care homes, etc.) salaries will most certainly be indexed five times by 2% this year.

Preserve purchasing power

It is the increase in the prices of goods and services via inflation, which leads to an increase in the wages of employees in the private and public sectors, as well as that of social benefits such as unemployment benefits or pensions. While there is no general legal wage indexation system in Belgium, wages remain closely linked to inflation.

A process that preserves the purchasing power of individuals but which we can nevertheless note some flaws. And for good reason: high inflation inducing a significant increase in wages, leads to an increase in wage costs for employers. In addition, as each sector has its own agreements, the timing and degree of indexation sometimes differs considerably.