Every January in Belgium, there is whats known as an indexation of salaries.
The indexation refers to salaries being adjusted to the cost of living for employees of companies subject to the Joint Industrial Committee 200 (JIC 200)
Indexation is the mechanism whereby salaries are linked to the consumer prices index. An employee’s monthly salary is increased by a percentage equal to the inflation rate of the previous calendar year.
The indexation system as foreseen by JIC 200 is applicable to all employees falling under the scope of this Joint Industrial Committee.
As of January 2020, the indexation was confirmed as 0.8%. As an employer, it is up to you to identify if your employees fall under the scope of the JIC 200 and whether you implement this increase.
Should you have any questions on the Belgium Salary Indexation or Global Payroll Technology, please get in touch with a member of the Immedis team below.
This blog was written by Immedis with assistance from our partners Propay.