Interprofessional Agreement 2017-2018 (IPA): wage standard and other provisions

After the Group of 10 had given its approval, also the government agreed to the interprofessional agreement of 2017-2018. One of the IPA provisions regards the wage standard which sets the authorized increase of the wage costs in the course of a two-year period. For 2017-2018 the wage standard is set at 1.1%. In this way you, as an employer, have more space to determine your payroll policy for 2017 and 2018.

The full text of the IPA can be found on the website of the CNT/NAR. Below we give an overview of the most important decisions.

Wage standard

In line with the 2015-2016 wage standard, the social partners allow the employers to grant wage increases also in 2017-2018. The maximum margin by which wage costs may increase in 2017-2018 is set at 1.1%. The wage margin can be concretized at sectoral and company level.

Before coming into action, it is recommended to wait until it is known whether your JC will conclude CBAs in this matter. When you now award wage increases or other benefits you must be aware that you might be obliged to award sectoral benefits later (on top of the benefits you have chosen). Besides, if you exceed the wage standard you may be penalized.

Of course we will keep you informed via our sectoral documentation of how your sector concretizes the wage margin.

Finally, we note that scale increases on the basis of seniority and wage increases remain guaranteed. Also specific wage increases (such as innovation premiums) can still be awarded on top of the wage standard. Should you require additional information, do not hesitate to contact our legal service legalpartners@partena.be.

Unemployment with company supplement (UCS) and wind-down time jobs (landingsbanen)

The interprofessional social partners have made the following adjustments to the existing framework CBAs of the CNT/NAR:

1. As regards the UCS

Current scheme	Conditions	IPA changes
Strenuous occupation from 58 years	have worked for 20 years in an arrangement including night work have been employed in a strenuous occupation (for at least 5/7 years during the 10/15 years preceding the end of the employment contract) professional career of 33 years	From 2018: from 59 years of age and professional career of 33 years
Strenuous occupation from 58 years	professional career of 35 years have been employed in a strenuous occupation (for at least 5/7 years during the 10/15 years preceding the end of the employment contract)	From 2018: from 59 years of age and professional career of 35 years
From 58 years and with a long career	professional career of 40 years	From 2018: from 59 years of age and professional career of 40 years
From 58 years for workers with serious physical problems	professional career of 35 years	No changes
From 55 years for businesses in difficulty or undergoing restructuring		In 2017 and 2018: from 56 years. Transitional measure for businesses having announced a collective redundancy before 01.11.2016 and recognized as business undergoing restructuring by the Minister of Work in 2017 (55 years at the time of the announcement). Final target = 60 years in 2020

2. As regards the wind-down time jobs

All provisions with regard to the wind-down time jobs (strenuous occupations, night work, work incapacity construction sector, long career and business in difficulty or undergoing restructuring) remain unchanged and are extended for 2017 and 2018.

Extensions

Different measures that are traditionally linked to the IPA are extended for the next 2 years. These are:

Measures impacting the wage package of your worker

1. The innovation premium system (art. 28 of the act of 3 July 2005 with regard to various stipulations regarding the social dialogue);

Innovation premiums = premiums awarded to a worker bound by an employment contract (no third party!) as a reward for an innovation proposed by him and holding an added value for the normal activities of the employer who awards the premium.

The innovation must be actively implemented by the employer.

The innovation premiums do not count for the wage standard.

Should you require additional information about this system of innovation premiums, do not hesitate to contact our legal service legalpartners@partena.be.

2. Financing and preservation of the government allowance in the context of the 80/20 system (contribution of the employer in the costs of commuter traffic via a third-party payer agreement);

Measures influencing the termination of the employment contract of your worker

1. The penalty when no outplacement is offered to your entitled workers is maintained at €1,800.

2. CBA No 114 with regard to the medical bridging pension (handicapped and serious physical problems) is extended again;

This CBA awards UCS to workers of 58 years and older with a professional career of at least 35 years on condition that they:

• either are qualified as disabled workers as recognised by a competent authority;
• or have serious physical problems caused fully or partly by their occupational work such that they are unable to continue in that work.

Measures with regard to risk groups

1. The employer contribution of 0.10% for efforts in favour of persons belonging to risk groups is maintained;

2. If the sector provides for an employer contribution of 0.15% for risk groups, the exemption to employ first job workers is maintained.

Prosperity-linked mechanism

The social partners want the prosperity adjustment budget (€169.9 million on an annual basis in 2017 and €506.8 million on an annual basis in 2018) to be divided according to the arrangements they have agreed on and that can be found in annexe 1 of the IPA 2017-2018.

Mission statements

Finally the social partners want to take up some social challenges in 2017 and 2018, especially the issue of burn-out, administrative simplification, future-oriented labour organization, digitalization and sharing economy, mobility budget, restructuring, youth employment, recruitment and employment promotion, measures in the context of the manual and non-manual issue and the debate on the reform of the joint industrial landscape.

By the end of 2017 the interprofessional social partners will have made an evaluation of the progress in this domain. When we have more information on this matter we will of course come back to you.

Source: Interprofessional Agreement 2017-2018.