Every year in January, the salaries of employees working in companies under the Joint Industrial Committee 200 (JIC 200) are adjusted to reflect the cost of living. This adjustment process is known as wage indexation 2025 in Belgium.
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The Index System
The salary indexation mechanism links salaries and wages to the evolution of the flattened health index. More specifically, the monthly salary is increased by a percentage that corresponds to the inflation rate of the previous calendar year. This ensures that employees’ salaries keep pace with the rising cost of living.
Joint Industrial Committee 200 covers all employers of the Auxiliary Joint Industrial Committee for white-collar workers. The indexation system outlined by JIC 200 applies to all employees within its scope, providing a standardized adjustment across the board.
Wage Indexation 2025
For the year 2024, the final percentage of indexation has been announced and stands at 3,58%. This is exactly the same increase the sector had in 2022.
Wage indexation 2025 means that, effective from January 1, 2025, the gross salaries of employees under JIC 200 will be increased by 3,58%. This increase is implemented to ensure that employees maintain their purchasing power despite inflation. Last year, wage index 2024 was 1,48%.
Additionally, this indexation affects the annual premium that needs to be paid in June 2024. If not replaced by an equivalent benefit, the premium will amount to € 323,69. This annual premium is a crucial component of the overall compensation package, providing additional financial security to employees.
In Practice
In practice, this means that employees will see a noticeable increase in their gross salaries starting from January 2024, which will help them cope with the higher cost of living. The annual premium, paid in June, further supplements their income, ensuring that their overall compensation remains competitive and fair. Your payroll specialist will guide you.
It is mandatory for employers to apply the index. One cannot bypass this, even the employee’s consent. Employers who choose not to apply index risk facing criminal sanctions.
Other Sectors of Industry
Besides Joint Industrial Committee 200 (JIC 200), many other sectors will also see salary adjustments in 2025. These include logistics, fuel trade, food trade and construction sub-sectors such as electricians and tilers.
Building management, estate agents and domestic workers will also be indexed. They too will adjust their salaries in January based on the smoothed health index at the end of November.
Preserving Purchasing Power with Wage Indexation 2025
This system of salary indexation is a significant aspect of the Belgian labor market, aiming to protect the financial well-being of employees by linking their wages and salaries to the economic realities of the country. By adjusting wages and salaries annually to reflect inflation, It helps ensure that employees’ real earnings do not erode over time due to rising prices.
If you like this post, you might be interested to read our post Belgian wage indexation reveal.
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