1 February 2019

Salary increases anno 2019 – 2020 : but what about the wage margin?

The central economic council has published her technical report hereby marking the starting point for the social partners (Group of 10) to engage in negotiations for a new interprofessional agreement for 2019-2020.

This interprofessional agreement has to determine a definitive maximum margin for the evolution of the wage cost in 2019-2020, without the percentage as determined by the central economic council being surpassed.

The central economic council has fixed the maximum available margin for the evolution of the wage cost at 0,8%. The wage margin is determined in function of the evolution of the wage costs in the neighbouring countries. Automatic wage indexation is never affected by the wage margin.

By limiting the evolution of the wage cost, the government tries to guarantee the competitive position of Belgium as to its neighbouring countries. The wage margin is important for industries and companies, since it creates a framework through which salary increases can be awarded.

If the social partners do not succeed in agreeing to an interprofessional agreement, the government will have to determine the wage margin by Royal Decree which will not be easy given the current precarious political situation.

MVVP follows up on the negotiations for the new interprofessional agreement.

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