Belgium - Parliament approves controversial wage index reform - May 31, 2026

The federal parliament has approved a controversial package of budget measures, including the new “centenindex” system that will limit automatic wage and benefit increases for some workers and pensioners. The measures were passed after months of political debate and delays. The Government says the reforms are needed to reduce the budget deficit and keep pensions affordable in the long term. Under the new rules, future index-linked pay rises will be fully applied only to the first € 4,000 of a gross monthly salary. Trade unions strongly opposed the pension reform and say they plan to challenge the new law before the Constitutional Court, arguing that it unfairly affects women, part-time workers and people with less stable careers.

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