Belgium is set to implement a significant salary indexation for 2025, establishing the official index rate at 3.58 percent. This increase, reported by SD Worx, is expected to directly benefit over one million workers when their salaries automatically rise on January 1, 2025. The adjustment applies to various sectors including automotive, construction, telecommunication, and consulting.
The 3.58 percent figure not only marks a rebound from the previous year's modest increase of 1.48 percent, it is also the second-largest adjustment recorded over the last decade, surpassed only by the exceptional rise linked to the spike in energy prices earlier this year, which reached 11.08 percent. The salary increases reflect the importance of keeping pace with inflation, as underscored by the smoothed health index, which is closely monitored by economic observers.
According to Raïna Gelaude, legal advisor at SD Worx, this indexation is seen as “pivotal” for employers across the board, stressing the necessity for companies to navigate through the automatic rise of labor costs. “These figures are pivotal for many employers, as they must account for the automatic increases due to indexation,” Gelaude pointed out, highlighting the financial burden it places on businesses who may need to readjust their budgets accordingly.
While the indexation is confirmed for employees across the CP 200 (the largest collective bargaining group), the salary adjustments will also extend to various other sectors. These include logistics, fuel trade, food commerce, and specific construction subfields like flooring and electrical work, ensuring the widespread impact of the increase.
The overall salary growth across Belgium has been notable over the last four years, with cumulative salary indexations from January 2022 to January 2025 reaching approximately 20.94 percent for many sectors under CP 200. This substantial growth, deemed necessary to combat rising living costs, highlights the delicate balance between maintaining competitive wages and managing employer expenses.
Explaining the broader economic outlook, Catherine Langenaeken, Expert Legal & Reward at Acerta Consult, clarified, “The automatic indexing is not perceived as salary increases by workers, but it signifies important and uncontrollable costs for employers.” She encourages businesses to view these costs as challenges to be met with innovation rather than setbacks.
Employers across sectors are recognizing the challenges posed by these necessary increases. The job market results show only 43 percent of SMEs are considering new hires in the first half of 2025, down from previous years, and 36 percent of enterprises anticipate workforce reductions. Annelies Baelus, Job Market Expert at Acerta, remarked, “Companies prefer retaining existing employees over hiring new talent, indicative of a gradual cooling job market.” These statements reflect broader trends of uncertainty surrounding future employment dynamics.
The Bureau du Plan forecasts the potential exceeding of the pivot index early next year, forecasting automatic salary increases among public servants, healthcare workers, and adjustments to social benefits. This creates additional layers of complexity as companies navigate their own internal costs against external economic factors influencing labor expenses.
Overall, the salary indexation set for 2025 not only emphasizes the adjustments needed to reflect inflationary pressures but also encapsulates the shifting realities of the labor market within Belgium. With rising living costs looming overhead, the steps taken by employers potentially lay groundwork for future labor relations as they strive to balance profitability with employee welfare.
