27/05/15

Pay freeze for 2015 and slight salary increase possible in 2016

The wage norm is a percentage that expresses the maximum wage cost change over a period of two years, based on the wage cost change in Germany, France and the Netherlands. Limiting the wage cost increase protects Belgium's competitive position compared to our neighbouring countries.

The government has thus set the maximum wage cost for 2015/2016 in the Act of 28 April 2015, published on the 30 April 2015 in the Belgian Official Gazette.

The wage norm for 2015 and 2016

For 2015, the wage norm is 0 %. This implies a pay freeze for 2015.
For 2016, the wage norm is 0,5 % of the total cost for the employer, all charges included, increased with 0,3 % of the net salaries. This implies that for 2016 a slight wage increase remains possible.

The pay freeze concerns the average wage cost within the company. Therefore, individual wage increases continue to be possible in principle, as long as the average wage cost does not increase. In practice, however, this will be very difficult for 2015 given the zero margin. An individual wage increase will thus only be possible if the wage cost is reduced elsewhere.

Wage increases as a consequence of indexation and scaled increases (a wage increase or allocation of benefits following a job change with existing scales) can (must) still be applied. Given that the indexation is momentarily frozen, only the scale increases are relevant.

Furthermore, a certain number of benefits are not taken into account for the calculation of the wage cost development, such as an increase in the employer's contributions in social pension systems or single innovation premiums.

The wage norm is now applicable to the public sector

The government has extended the scope of the wage norm to public economic companies (eg. : Belgacom, B-Post, SNCB, etc.).

Sanctions

Non-compliance with the wage norm can result in administrative fines. In addition, a court can declare a wage increase agreement null and void.

In the past, compliance with the wage norm was not closely monitored. The government announced more severe sanctions and more monitoring, but this has not yet been materialised.

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