Service Voucher Price Increase: Will Households Pay More? – Exploring the Prospects and Concerns

2023-09-08 20:48:15

Could a service voucher soon cost 15 euros instead of 9 or 10 depending on the region? This is a prospect that worries more than one household.

The main service voucher federations are demanding an increase of 5 euros per hour worked, from January 1. “We are on the brink of the abyss” they whisper.

Does this mean that households would have to pay 5 euros more per hour, if the measure is adopted? “Not necessarily” reassure the employers’ federations. “We might increase the check paid by households a little, and supplement this with other measures, notably more subsidies” explains Ann Cattelain, general director of Federgon, the main federation of service voucher companies.

5 euros: for whom, for what?

“For the moment, each user pays their housekeeper a check worth €9 or €10 depending on the region. For each hour worked, the region completes this check of €17 or €18. This represents a salary cost which oscillates between €27.5 and €28.5. We ask to add €5 to this because we are no longer able to fulfill our obligations as an employer.” adds Arnaud Le Grelle, director of Federgon for Wallonia and Brussels.

Average profitability is 2.5 cents per check

But what exactly would these extra 5 euros be used for?1€ would be used to increase the salary of housekeepers and they deserve it. 2€ would allow us to provide career support and 2€ would allow us to restore profitability so that companies are structurally viable” explains Arnaud Le Grelle.

“It is necessary and urgent because today, the average profitability is 2 and a half cents per check!”

Our sector no longer has a future

“More than half of companies are operating at a loss” confirms Ann Cattelain. “There was the corona shock, the shock of inflation with the increase in wages. We need these 5 euros to keep businesses running.”

“Today, our sector no longer has a future and that worries us very, very much” supports Arnaud Le Grelle. “Our big fear is that in 2024, bankruptcies will keep coming.”

Blockage of public authorities

The problem is that neither the Walloon government nor the Brussels government want to hear regarding it.

On the Walloon side, the Minister of Employment Christie Morreale (PS) denounces “an inappropriate request”. “Public money is not there to finance the dividends of some of the employers in the sector” castigates Christie Morreale. And to add: “The Walloon government has adopted a balanced reform, which allows the sector to be refinanced to the tune of 30 million euros.” This reform will come into force on January 1, 2024 and will increase the value of the title from 9 to 10 euros. “It will also make it possible to eliminate operating costs for users and improve remuneration conditions and the well-being of workers” adds the Walloon Minister of Employment.

This is an inappropriate request

On the Brussels side, we remind you that the increase in the price of the service voucher to 10 euros has already been in force since January 1, 2023. Minister Bernard Clerfayt (Défi) adds that the impact of the health crisis now seems to have been absorbed. The number of service vouchers used in the Brussels Region has returned to its pre-crisis level. At the same time, I decided to index the share paid by the Region per service voucher to 100%. It therefore seems to me that all conditions have returned to normal to ensure the financial stability of service voucher companies.” declares Bernard Clerfayt.

Enough to make certain service voucher company bosses even more tense. “In many places we are below the price of undeclared work, which is a bit curious for a subsidized system” quips Arnaud Le Grelle ironically.

“We also see from the numerous surveys we have carried out that a large majority of users say they are ready to pay more. This is an exception in Belgium.”

Given the reactions of the different governments, the fight nevertheless seems lost in advance. Bosses ruminate, while households can take a deep breath.

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