While workers in Luxembourg will have to , more than 500,000 private-sector employees in Belgium will see their pay rise by 3.58% in January 2025. This significant increase has been calculated by HR services provider Acerta on the basis of Statbel data. This increase reflects a higher indexation than in 2024 and is the second highest in the last ten years, after the exceptional increase of 11.08% in 2023 due to soaring energy prices.

In Belgium, salaries of employees of the auxiliary joint committee for employees (CP 200), which covers the largest number of workers in the country, are adjusted each year to keep pace with inflation. After a modest indexation of 1.48% in 2024, the planned increase for 2025 reflects a rebound in the smoothed health index, a key indicator of changes in the cost of living.

Catherine Langenaeken, legal & reward expert at Acerta Consult, pointed out: "Automatic indexation is not perceived as a pay rise by employees, but it represents a significant and uncontrollable cost for employers. However, employers can invest in well-being and sustainable careers to differentiate themselves."

In addition to CP 200, other sectors will apply similar indexations at the beginning of 2025:

- Food industry, transport and catering: +3.57

- Food retailing and estate agents: +3.58

- Insurance: +3.58%.

These adjustments reflect a national effort to maintain workers' purchasing power in the face of continuing price rises. The Planning Bureau anticipates that the pivot index will be exceeded from January 2025, leading to an automatic increase in the salaries of civil servants, healthcare workers and social benefits.

A job market under pressure

Only 43% of SMEs are planning to hire in the first six months of 2025, a figure that is slightly down on 2024. 36% of companies are planning to reduce staff numbers, down on previous levels but still a cause for concern. Political uncertainties linked to the formation of the new federal government and expected reorganisations are weighing on business morale. Acerta labour market expert Annelies Baelus comments: "Companies are focusing on retaining existing staff rather than hiring new talent, a sign that the market is gradually cooling." As Belgium adjusts wages to maintain purchasing power in the face of inflation, companies are having to contend with rising costs and a climate of uncertainty.

This article was originally published in .