Understanding Salary Increases and Indexation in 2023: Important Factors and Implications

2023-10-07 17:44:00

Last year, the planning office predicted this index jump in April 2023, following five consecutive index jumps occurring in 2022 and record inflation… Which led many employees to benefit from an 11% salary increase. last January, while some workers had benefited from increases of 2% over the past year.

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To know if your income will increase in November, December or January, you must take into account one important element.

You must mainly take into account your joint committee for employees and workers, and the sector which employs you.

But 2023 is therefore a different year since there will only be one index jump this year, with the crossing of the pivot index in October. And in fact, a 2% increase in unemployment and pension benefits, from November 1.

Civil servants will have to wait until December to benefit from this increase on their pay slip. Other public sector workers are also in this situation.

For the 500,000 employees who depend on the joint commission (CP) 200, the largest in the country, we will have to wait until January for this salary review. Other joint committees only provide for indexation once a year, and will therefore have to wait until January: real estate agents, employees in insurance, horeca, industry, casinos, but also logistics, workers in the food industry and food trade, electricians…

For those whose employment contract provides for potential indexation twice a year, it will also occur in January: this is the case for funeral home employees or even textile or paper packaging processing workers.

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Finally, those whose salary can be indexed every two months will also be indexed in January 2024: this concerns construction workers, those in the furniture and wood industry in particular.

“It’s not such good news”

For economist Bruno Colmant, this single jump in the 2023 index represents good news for employers “compared to the increase in wage costs that they have borne for 2023”, “but for workers, it is not not such good news because these 2% do not reflect the real increase in the cost of living that they bear, the index not taking into account the price of fuel which has increased sharply in recent weeks. Ultimately, this is not very representative of the purchasing power of Belgians.”

For 2024, the Planning Bureau forecasts inflation of 4.1%. We should therefore exceed the pivot index (and index salaries) twice next year, in March and September. Advantages which, once more, will depend on your joint committee. For some, this 4% increase will therefore not occur until January 1, 2025…

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