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“We are all very happy”: salary increase for 1 million employees in the coming days

  • Post category:Economy News
  • Reading time:2 mins read

In the coming days, nearly a million workers will see their wages increase by around 11%. Depending on the joint committee, wage indexation was done gradually, or all at once. This represents a significant cost for companies.

In this parking company, the atmosphere is concentrated. But to scratch, everyone is very happy. From tomorrow, on their pay slip, a nice increase of 11.08% awaits employees. This is the automatic indexation of wages. “We are all very happy. I am not the only one. Lots of people are very happy with this indexing. We can only be delighted. We need it”, expresses an employee of the company. One of his colleagues continues: “It’s very good for daily living costs.” Another tempers: “It’s a little butter in the spinach, but it does not cover the real inflation of the costs that we are experiencing.”

It’s not possible, it’s not doable.”

To fully understand the impact of such indexation, the director of human resources, Emmanuel Tyteca, sheds light on his company with 300 employees and workers. That is, several million euros per year of additional charges. “Based on the employer’s point of view, it is a very significant cost that we will have to absorb. We have anticipated, we will absorb it but we cannot pass it on to the client like that. That’s not how it works.” For the parking company, there is no question of increasing the price of parking. “It’s not possible, it’s not doable.”
Not recovering this increase from the users of the car park, that is the whole challenge. They are going to have to reduce the costs or the profits, it is mathematical.

Detail which is important: a large indexation of wages once a year, it may seem very attractive, but in the end, it is less interesting than smaller indexations throughout the year.