In March, civil service salaries, benefits and pensions will rise by 2 per cent. This is due to the index that measures the cost-of-living in Belgium rising a full 2% in recent months.
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Civil service salaries, benefits and pensions get 2% top-up in March after inflation triggers new hike
Colin Clapson
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Under the automatic wage indexation system, many Belgian wage packets rise when the cost-of-living increases.
For civil servants, this calculation is based on the trigger index. This month, that index had risen by over 2% since the last top-up was triggered. Inflation stands at 2.06 per cent. As a result, many wages will increase by 2 per cent in March. This also applies to benefits and pensions.
Employees in the private sector also see their wages increase when prices rise. However, this adjustment is usually not linked to the trigger index but occurs via a different mechanism. Many employees receive that increase on 1 January. These workers will enjoy a 2.21 per cent top-up.
De Wever I government cuts top-up for better-off workers
In November, Belgium's 5-way federal government decided to cap the index twice in the coming years. Workers who earn more than €4,000 gross will see their wages increase less than normally.
There is still a lot of uncertainty about the timing of this so-called “cash index”. The government has yet to agree on the details and the changes must also be approved by parliament.
Nothing will change for people who receive their indexation on 1 January. It is unclear what exactly will happen to the wages of better-off pensioners and civil servants who receive their indexation in March. However, it seems unlikely that the cash index will already be operational by then.
What's gone up and down in price?
In comparison with last December veal and beef, air tickets and domestic services became much more expensive, while prices for smartphones, laptops, video equipment and natural gas became cheaper.