The economy ministry has revealed that the trigger index has been exceeded. Public sector wages, pensions and benefits will rise by 2 per cent in coming months. Almost all workers in the private sector will also see their wages increase, although the exact timing of the increase varies from sector to sector.
When the cost of living becomes more expensive due to inflation, the wages of almost all workers, benefits and pensions rise too. That is the Belgian system of automatic wage indexation introduced to protect purchasing power.
Public sector wages, benefits and pensions are pegged to an index that thanks to a basket of goods and services reflects any rises in the cost of living. When prices rise 2% above the last increase a new 2% top-up is triggered.
Private sector workers too see their wages rise, although that calculation is not directly linked to the trigger index. The timing of private sector wage increases depends on the sector where people are employed.
2 per cent rise
Inflation stood at 4.08 per cent in January, up 0.92 percentage points from December 2024. The rise triggers a 2% top-up.
Benefits and pensions will rise by 2 per cent in February. Public sector wages will rise by 2 per cent in March.
Inflation above 4 per cent
The inflation rate is up from 3.16 per cent in December to 4.08 per cent in January. What does that mean for your expenditure? Goods and services that cost an average of 100 euros in January 2024, will now set you back an average of 104.08 euros.
The government calculates inflation using the prices of a wide variety of products and services. Some of these have risen in price, while others have fallen.
Prices for household services, energy, food, alcoholic and non-alcoholic drinks have risen. Mobile phone services, hotels and city trips became cheaper.