Planning Bureau forecasts wage indexation due to inflation in 2026
The Federal Planning Bureau expects the pivot index to be exceeded again by the end of 2026. That would trigger higher government salaries and social benefits. The revised forecast is included in an updated inflation outlook published by the bureau on Tuesday.
Until now, the Federal Planning Bureau had assumed that the pivot index would not be breached in 2026. That changed due to slightly higher inflation expectations. Inflation is now forecast at 1.8 per cent, compared with 1.7 per cent in the previous outlook.
Due to Belgium's wage indexation mechanism, that would trigger the increase of government salaries and social benefits. The pivot index was exceeded twice in 2025, in January and December. As a result of the latest breach, social benefits and salaries of public sector employees will increase by 2 per cent in March.
The federal government plans to limit automatic indexation twice during the current legislative term, which lasts until 2029. According to current plans, the cap would apply to wages up to 4,000 euros gross per month and to social benefits up to 2,000 euros per month. However, the precise design and timing of the measure have not yet been determined.
© PHOTO BELGA
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