Prices are rising, and so is your salary. What you need to know about Belgian Indexation

The Belgian system of wage indexation is unique in Europe and has been subject to much political and social debate. Between 2005 and late 2010, salaries have increased automatically by 11.2%, without a single social negotiation. This means that the salary of you and me automatically increases in Belgium. Want to understand why? Then read on!

What is the Belgian automatic wage indexation?

The Belgian Health Price Index (commonly referred to as ‘the index’) is a list of prices of goods and services, kept by the Belgian Federal Public Service Economy. The Index is updated on a monthly basis and reflects the evolution of the cost of living. In Belgium, all wages, pensions, property rental costs, unemployment benefits, etc. are tied to the index, meaning if the cost of living in Belgium goes up, your salary goes up with it.

What makes the Belgian indexation of wages unique from the rest of the eurozone is that all Belgian wages follow these index adaptations. Unlike in The Netherlands, Germany and France, the Belgian system includes all public and private businesses. No one is left out. So, if you work in Belgium, the current high cost of living won’t be as noticeable for your financial status as it might be in the neighboring EU countries.

The index: What’s in it for you?

The higher salary due to the index happens almost every year. But in 2022 the index has jumped more than once and will potentially jump again in October and December. Depending on where you work in Belgium, you will get an immediate rise the moment the index is surpassed or get the rise at 1 predefined time per year. This sometimes leads to pretty big increases at once, especially when the inflation is on a steep increase as it has been this year and will be next year.

Between January 2022 and January 2023 all wages in Belgium will have increased between +/- 9 and 10%. So, if before you earned €1800, you will earn €1980 at the start of the new year.

Higher cost of living = higher salary

In times of high inflation, Belgium really is the best country to be working in. How else will you cover the higher prices for electricity, living expenses and food?

Salaries in Belgium will keep increasing automatically to make sure that your cost of living remains almost the same. Can you say that of any other EU countries you have worked or lived in during the past?
So pack your bags and come to Belgium! At Link2Europe we are more than happy to find you a wonderful new job!

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Prices are rising, and so is your salary. What you need to know about Belgian Indexation