Belgian wage costs rising more slowly than in neighbouring countries, says CRB

Belgian wage costs are currently rising less quickly than in Germany, France and the Netherlands, according to an interim report by the Centrale Raad voor het Bedrijfsleven (CRB) for the 2025-2026 period.

The CRB, which is made up of employers and trade unions and monitors Belgium’s competitiveness, says the country’s wage cost handicap is now decreasing and is technically negative. The wage cost handicap refers to the gap between how fast labour costs rise in Belgium and in its main neighbouring countries. A negative handicap means Belgian labour costs are increasing more slowly, so the country is not losing competitiveness under the 1996 law on competitiveness.

The figures are still provisional and have no immediate impact on the wage margin, the maximum room for pay rises above automatic indexation. That margin is set every two years and forms the basis for private sector wage talks.

According to the CRB, Belgian wage costs are expected to rise 1 to 1.1 per cent less quickly this year than in neighbouring countries, compared with the 1996 reference year. In 2025, wage costs in Belgium still rose by 0.3 per cent.

The change is linked to catch-up wage increases in neighbouring countries following high inflation during the pandemic and energy crisis. In Belgium, wages are automatically linked to inflation, meaning pay rises when consumer prices increase. This system led to faster adjustments between 2022 and 2025, increasing the wage cost handicap during that period.

“The dramatic show of the employers is over”

If the current trend continues, there could be room next year for pay rises on top of indexation. “The statistics point in that direction, but the figures may still fluctuate,” said CRB chairman Benoît Bayenet to newspaper De Tijd.

The debate over the historical wage cost handicap remains unresolved. The socialist trade union ABVV says the handicap has been eliminated. “The dramatic show of the employers is over,” said ABVV chairman Bert Engelaar to public broadcaster VRT.

Employers’ groups disagree. The Verbond van Belgische Ondernemingen (VBO) argues that a structural handicap of around 10 per cent remains and warns against drawing conclusions from provisional data. “It would be premature to reach conclusions based largely on interim and therefore uncertain figures,” said chief executive Pieter Timmermans in De Tijd.

The employers’ organisation Unizo also expressed concern about the government’s decision to limit indexation for higher wages. From this year, gross monthly salaries above 4,000 euros will lose part of two index adjustments. While this lowers labour costs in principle, half of the benefit will return to the state.

The wage margin for the next round of negotiations will be calculated in February. Talks between unions and employers are expected to follow shortly afterwards.

^{© BELGA PHOTO DIRK WAEM}