Belgium: Salary indexation: BSC No. 200

After months of discussions, the percentage for the mandatory salary indexation is finally fixed in the business sector committee No. 200.

In brief

On 1 January 2023, companies in Belgium that fall under business sector committee No. 200 (“BSC No. 200“) will have to increase the salaries of their white-collar employees (without exceptions) by 11.08%.

Context

The (mandatory) salary indexation in Belgium is regulated at the business sector level via sector-level collective bargaining agreements (CBAs) with certain variations from one sector to another:

• Some business sectors have no mandatory indexing while others apply a so-called spill-index mechanism (2% increase every time there is 2% inflation — timing is unknown, but percentage is known), others apply fixed timing for indexation (usually annually in January, and some quarterly or twice per year — timing is known, but percentage is unknown).
• Various sectors apply indexing only to minimum salary scales, while others apply the indexation to all salaries, i.e., also actual salaries.
• Yet other sectors apply indexing only to so-called scaled employees, i.e., employees with a function scaled within the sector-level function classification, which usually excludes higher management; others apply it to all employees.

Companies under BSC No. 200

Companies in Belgium that fall under BSC No. 200 are subject to the indexation set forth in the BSC No. 200 sector-level CBA of 9 June 2016 on indexation. This CBA stipulates that the salaries of white-collar employees have to be adjusted each year on 1 January with a percentage based on the evolution of the “flattened health index.” This not only applies to the minimum salaries, but also the effectively paid salaries.

For 2023, the percentage is fixed at 11.08%. This means that on 1 January 2023, the salaries of all their Belgian white-collar employees (without exceptions) are to be increased by 11.08% as to be applied immediately in the payroll of January 2023.

Note that this indexation increase cannot be “absorbed” by other types of (previous) salary increases (e.g., merit increases). However, some companies apply, on a debatable basis, waivers of rights for some categories of personnel, be it after the effective date of implementation of the indexation.