Agreement within the Group of 10 on minimum wages, overtime and end-of-career

The wait was longer than in previous years, but last night the Group of 10 reached a draft agreement on the increase in minimum wages, RCC/SWT, tax friendly overtime hours, end-of-career time credit and the postponement of the harmonisation of supplementary pensions.

This agreement comes after the government had already decided on the maximum margin for the wage cost development (0.4 %), supplemented by an exceptional corona premium of € 500.

Below you will find a brief overview of the various points of the draft agreement and their impact.

Increased guaranteed average minimum monthly income (GMMI)

In April 2022, minimum wages will increase by € 76,28 gross per month to € 1,702 gross. It was also decided that the minimum wages will be increased by € 36 each time during the next two inter-professional agreement (IPA) discussions.

In order to obtain as high a net amount as possible from this increased minimum wage, the social partners are asking the government to take additional fiscal measures.

Please note: This only concerns the increase of the guaranteed average minimum monthly income (GMMI), not an increase of the sectoral minimum wages or general wages. These wages can be increased on the basis of the 0.4% wage standard agreed by the government. This will first have to wait for negotiations at sectoral level.

End-of-career

The current RCC/SWT scheme [system of unemployment with company supplement] is extended by 2 years. RCC/SWT therefore remains possible from the age of 60 for companies in difficulty or undergoing restructuring.

As far as time credit is concerned, there is one major novelty. Whereas previously, time credit from the age of 55 was only possible by means of a 1/5th reduction, from now on this will also be possible on a part-time basis. Until 31 December 2020, employees could only reduce their working time on a part-time basis from the age of 57.

It is interesting to know that this last decision does not constitute an additional cost for the employer, as the National Employment Office ONEm/RVA takes care of the supplementary time credit allowances. Furthermore, the wage of the worker concerned will decrease proportionally as less hours will be worked.

Postponement of the harmonisation of supplementary pensions

The compulsory equalisation of the supplementary pension for manual and non-manual workers is postponed by 5 years, from 1 January 2025 to 1 January 2030.

In this context, the Group of 10 has also decided that part of the future wage increase margin (0.1%) will be used for this equalisation.

Corona overtime hours become ‘recovery’ hours

The more flexible overtime hours scheme introduced in certain sectors as a result of the coronacrisis is extended and expanded to all sectors. Until the end of 2022, it will be possible to work 120 additional overtime hours at a favourable tax rate.

Wage standard + corona premium

Now that the Group of 10 has reached an agreement, the government can also ratify its mediation proposal concerning the 0.4 % wage standard and the corona premium of € 500.

What’s next?

The employees' and employers' representatives will now submit this draft agreement to the government and their constituencies for approval.

The draft agreement and the government's proposal on the wage standard will then be finalised.

Then the ball is in the sectors’ court.

Of course we will keep you informed about the developments in this matter.

Source: press