Brussels (Brussels Morning Newspaper) – Bart De Wever (N-VA) suggests adjusting wages once a year instead of multiple times to ease government costs. This could save money but reduce workers’ pay raises by about €20 monthly in 2025-2026, affecting their ability to afford rising costs. The Vooruit party opposes this, saying it harms workers.
The topic of wage indexation is causing a lot of debate. Bart De Wever, the N-VA leader, has made some big proposals in his recent “supernote.” He wants to change how government workers’ wages are adjusted. Their wages go up several times a year to keep up with inflation.
De Wever suggests making this adjustment only once a year in January. He believes this will help reduce the financial strain on government budgets, especially during high inflation. By adjusting wages less often, he thinks the government can better control its spending while still helping workers with living costs.
What changes does Bart De Wever propose for wage calculations in Belgium?
His second idea is to change how wages are calculated for all workers, both in public and private jobs. Currently, wage increases are based on the health index, which does not include costs for things like alcohol, tobacco, and fuel. This is to focus on basic living costs.
De Wever has not shared all the details of his new method, but he wants to make the system less affected by inflation. He believes this will help employers who say that automatic wage increases during inflation affect Belgium’s economy. However, some worry that these changes could reduce workers’ buying power, especially for those with lower incomes. He mentioned that this debate shows the struggle between maintaining Belgium’s social support and dealing with issues like inflation and rising labour costs.
In Belgium, wages are currently adjusted based on the health index from the last 4 months. Bart De Wever wants to change this to a yearly average instead. He believes this will make wage increases steadier and help businesses manage costs better during inflation. De Wever mentioned that workers might not see their pay rise as quickly when prices go up fast. This could make it harder for them to afford everyday expenses.
The proposal has received strong opposition from other political parties because it affects workers’ buying power. Vooruit, a party focused on social welfare, thinks the idea is not acceptable. They argue that the current wage system helps workers afford their needs, especially during times of rising prices.
According to Vooruit, changing to a yearly average could weaken this support and put more pressure on workers. CD&V has also shown concerns about this change. They mentioned that this issue highlights the debate about balancing the economy with fairness, making wage indexation a topic for the next federal government discussions.
What impact will the Federal Planning Bureau’s wage index study have on workers’ purchasing power in Belgium?
In November 2024, the Federal Planning Bureau studied how to calculate the health index, which helps adjust wages in Belgium. They compared the current method, which uses a 4-month average, to a new method that would use a 12-month average. The study found that using the 12-month average would lower the health index by about 0.6% from 2025 to 2029.
According to Vooruit, wages would increase less, affecting workers’ buying power. The biggest differences would be seen in 2025 and 2026, with wages rising about 0.5 to 0.6 percentage points less during those years.
According to authorities, workers with higher salaries will lose more, while those with lower salaries will lose less. Over a year, this could add up to a total loss of 250 to 300 euros in pay raises for an average worker.
They mentioned that the new method makes wage adjustments smoother, but it also delays how quickly wages can keep up with rising costs. This could create extra financial pressure for workers when prices go up.
Authorities mentioned that in the coming years, the differences in wage increases will be smaller. From 2025 to 2029, the average difference in wage indexation is only 0.1 percentage points each year.
The Planning Bureau thinks there won’t be big inflation jumps like after the coronavirus and the Russian invasion of Ukraine. If inflation rises suddenly, the difference in wage calculations could be larger. The idea to raise wages once a year for everyone is not part of this study.
Economist Gert Peersman from UGent expressed his worries about this. He does not like the idea of automatic indexation. He believes that if wages are adjusted just once a year, it won’t help keep purchasing power stable. He fears that people may face big changes in their purchasing power, especially with high energy prices.
Economist Gert Peersman (UGent) said:
“I am personally not a fan of automatic indexation, but if you index once a year, the system has absolutely no point in ‘stabilizing’ purchasing power.”
Bij 1 indexatie per jaar kan je (door de wijze waarop energieprijzen in index worden gemeten) qua koopkracht in een echte rollercoaster terechtkomen…
— Gert Peersman (@GertPeersman) January 26, 2025
Blauwe en grijze lijnen tonen koopkrachtevolutie tijdens voorbije regeerperiode van werknemers die 1 indexatie per jaar kregen pic.twitter.com/z8NKFYYE5F
