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The real salary of Belgians will fall in 2022

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

The real wages of Belgians are down by just over 2% in 2022, as in 2021.

Reading time: 2 mins

TLike last year, the real wages of workers will fall by 2% in 2022, according to a recent study by the National Bank, the Planning Office and the FPS Economy on the economic consequences of the war in Ukraine . However, the increase in hours worked is keeping purchasing power barely in positive territory.

According to Wednesday’s edition of The Free Belgiumthe outlook for 2023 is however more optimistic since the BNB expects real wages to rise by 3%, with indexation taking effect with a delay for quite a few categories of workers.

“The automatic increase in wages protects the purchasing power of households, but for more than one in three workers (37.6%), this indexation only occurs once a year”, we read in the daily, citing the study by the National Bank.

“Great Uncertainties”

The energy price shock affects (at least temporarily) the purchasing power of households, which is however better protected than in other countries, comments the BNB.

Households are “faced with great uncertainties”, which materialize “by a drop in the consumer confidence index below its historical average level”, further notes the Bank. This is also reflected in “consumption which is temporarily slowed down by the slow decline in purchasing power (which is however better protected than in other countries) but sustained by the fall in the savings rate and the indexation mechanism wages and social allowances (which compensates but with delay)”, we still read in The Free.