Available margin for wage development = 0.4% - What is the impact on wages?

Author: Brigitte Dendooven - Leen Lafourt (Legal Experts)
Read time: 2min
Publication date: 11/08/2021 - 10:49
Latest update: 12/08/2021 - 08:42

The wage standard for 2021-2022 was officially set at 0.4% by the Royal Decree of 9 August 2021. As a reminder, this margin was 0.8% for 2019-2020.

Interprofessional agreement - Royal Decree of 9 August 2021

The wage standard determines how much wage costs may increase in the period from 1 January 2021 up to 31 December 2022.

It is important to note that this margin is a maximum (absolute) margin for the wage cost development. Thus negotiations between the social partners cannot lead to a decision to apply a higher percentage. They can only confirm the 0.4% or award a lower percentage (although the latter is unlikely).

Note

 

Wage scale increases on the basis of seniority, normal promotions or individual category changes to which your employees are entitled and the guaranteed index increases may be in addition to the wage standard. The 'corona premium' can also be granted on top of the wage standard.

This also applies to other benefits (e.g. the awarding of an innovation premium). Are you looking for practical guidance and advice? Contact Partena Professional via legalpartners@partena.be.

Sector negotiations

The standard of 0.4% forms the framework for the negotiations of the agreements at sector level. Every two years, the social partners (employee and employer representatives) of each joint committee conclude their sector agreement in which they further detail the wage standard. As soon as the sector has concluded its sector agreements, we will of course inform you about this via our sector information: click here.

At company level

Do not start working on the basis of this 0.4% yourself, it is best to wait for the results of the negotiations in your sector. 

Already awarding wage increases or other benefits now could also mean that you should also award the benefits of the sector. Furthermore, you also risk a sanction if you exceed the wage standard in this case. 

 

Source: Royal Decree of 30 July 2021 implementing Articles 7 § 1 of the Law of 26 July 1996 on the promotion of employment and on the preventative safeguarding of competitiveness, Belgian Official Gazette of 9 August 2021.  

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