Since 1 June 2026, the new “centime indexation” has come into force, capping the indexation of the highest salaries. Whilst this measure may help to keep wage costs under control, it does make payroll management more complex. In this context, what are the practical implications for your organisation?
New measure in force since 1 June 2026
Since 1 June 2026, a new form of wage indexation has come into force: indexation in centimes. This measure limits increases in the highest wages and is part of the government’s efforts to control wage costs whilst maintaining a balanced budget. A second phase of this measure is also planned for 2028.
Current wage indexation mechanism
In Belgium, wages are traditionally indexed automatically in accordance with sector-specific rules. Depending on the sector in question, this indexation takes place annually, quarterly or when the pivot index is exceeded. This automatic adjustment enables wages to keep pace with changes in the cost of living. With the introduction of indexation in cents, this mechanism is being partially adjusted.
Objective of the measure
Indexation in cents aims to limit the indexation of the highest wages. In practical terms, nothing changes for salaries up to €4,000 gross per month. For the portion of the salary exceeding this threshold, indexation is capped at a maximum of 2% during the relevant period. The measure will be implemented in two stages: an initial application from June 2026 and a second in 2028, with an adjustment to the relevant threshold.
Significance of the reference salary
The application of the cap is determined on the basis of the ‘reference salary’. This is the basic gross salary calculated on the basis of a full-time position, excluding variable remuneration such as bonuses, overtime or meal vouchers. For part-time workers, this amount is calculated on a pro rata basis. In practice, this means that the highest-paid workers will see a smaller pay rise than would have resulted from the application of standard indexation rules.
Practical impact for employers
The practical impact of this measure varies depending on the sector and the timing of the indexation. In sectors where indexation exceeds 2 per cent, wage increases are significantly curbed. Where indexation is below 2 per cent, the effect of the measure is spread over several indexation periods. This approach makes the application of the mechanism less transparent and complicates payroll management, particularly in sectors that undergo several indexations per year.
Additional ONSS contributions
In addition to the direct impact on wages, the legislator has provided for the introduction of an additional employer’s contribution to the ONSS. This is linked to the effects of wage moderation and will be collected alongside the standard social security contributions. Furthermore, a consolidated contribution will also be introduced, although the specific details of this new contribution have yet to be defined. These new obligations require employers to exercise greater vigilance, both administratively and financially.
What are the implications for your organisation?
It is important for employers to assess the impact of this measure. Whilst the cap may help to control labour costs associated with the highest salaries, it also requires rigorous monitoring of sector-specific rules and the various indexation dates. In this context, a proactive analysis of the pay structure and close coordination with your payroll department are essential in order to anticipate the effects of this new regulation.
Calculation example
This example illustrates a situation where the sector applies a 4% wage indexation. For PC 200, the forecast for January 2027 is approximately 4%. The indexation will take place in two stages.
By Kathleen Bracke, Managing Associate at BDO Legal
Charline Leflot, Partner at BDO Legal and a solicitor specialising in employment law
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