Belgium - Social partners criticize exemption of automatic wage indexation - March 31, 2026

On 11 March, a parliamentary committee approved elements of a draft Programme Act introducing temporary limits on indexation for higher incomes. The social partners in the National Labour Council (CNT/NAR) criticised the proposal, arguing that they were consulted too late and that the proposal undermines sectoral collective agreements. Under the draft Programme Act, price indexation of wages will remain unchanged for employees earning up to € 4,000 gross per month, but from 1 June 2026, indexation for salaries above € 4,000 will be capped, with only the first € 4,000 eligible for limited indexation. A new employer social security contribution will apply to offset lost tax and contribution revenue resulting from partial indexation. Most employees are covered by a collective agreement stipulating automatic salary indexation.

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