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Central index rate 2026 and cents index: where do we stand today?

The geopolitical situation is causing turmoil in the entire economy. The index committee, which estimates inflation every month, could not agree on the inflation figure for April. The approval of the index figure for April was submitted to the Minister of Labour Clarinval, who set the inflation rate at 4.01%.

This AI-generated translation may contain errors and should not be considerd legal advice. For accurate info, refer to the Dutch or French version or consult your Securex Legal Advisor.

Faster crossing of the central index?

The central index is a threshold that decides when social benefits and government salaries are adjusted for inflation. If the average of the last four months of the health index (called the ‘flattened’ health index) goes above the central index, these amounts increase by 2 percent. High inflation causes wages to rise faster than expected.
 

Will the central index be exceeded in 2026?

Inflation rises from 1.65% to 4.01% in April. This is mainly due to more expensive energy. This obviously also affects the central index. While earlier expectations said the central index would only be exceeded in July 2026, this is now expected in June.

If the central index is exceeded, wages and social benefits increase by 2%.
This happens three months after the consumer price index figure is exceeded. This means government staff salaries will only be adjusted by 2% in September.

Also, the non-profit sectors (such as nursing homes and day nurseries) then receive an indexation
of 2%. This index adjustment takes place in the first or second month after the central index is exceeded, according to agreements made at sector level.
Furthermore, there is also an increase in the GMMI, the work bonus, the flexi-wage in the hospitality sector, …
 

What about the cents index?

The future of the cents index is currently uncertain. The social partners have already raised questions about the cents index. In the Group of Ten, they reached an agreement on an alternative for the private sector, which reduces the impact of high energy prices in the index.
Read more: "Agreement Group of Ten: Cents Index - VBO FEB"
During the plenary meeting of 29 April 2026, the government made clear that it maintains the cents index.
The alternative proposed by the social partners was discussed but not accepted, mainly for budgetary reasons. The cents index thus remains for the time being the tool to reduce the impact of indexations on wages and benefits.
 

What exactly is the cents index again?

The budget agreement of November 2025 introduced the so-called cents index for wages above the median of 4,000 euros gross. This measure temporarily limited the indexation of certain higher wages, pensions and social benefits to 2% in 2026 and 2028.
The cents index consists of three parts:

  • an index moderation for certain higher wages;
  • a special wage moderation contribution;
  • a consolidated special wage moderation contribution.

A simple example:

When the central index is exceeded and the indexation is 2%, Maud’s gross salary increases by 80 euros with a monthly salary of 4,000 euros. This is the case both with the ordinary indexation and with the cents index.

If Maud earns 5,000 euros gross per month, her salary would increase by 100 euros with a classic indexation. Under the cents index, however, that increase is capped at 80 euros.

The employer thus saves 20 euros. Taking into account an employer’s contribution of 25%, the total saving is 25 euros. Half of that amount, or 12.5 euros, must be paid to the government.

Read more: "The cents index is coming"


Alternative proposal

The social partners want to limit the impact of high energy prices on automatic wage indexation. They propose to calculate electricity and gas prices more realistically in the health index by including ongoing (fixed) energy contracts, not only new contracts. From April 2026 onwards, energy inflation would be calculated based on a 12-month moving average, which ensures a more gradual effect of price increases and decreases on the index figure.

Index forecast for JC 200

In joint committee no. 200, wages are indexed once a year in January. The indexation rules  in JC 200 are therefore not linked to the central index.

In January 2026, wages in JC 200 were indexed by 2.21%.

The forecast for January 2027 currently stands at x%. Whereas in previous months an index of 2.86% was assumed, it is now expected to be 4.01%.

Read more: "Indexation rules JC 200"
 

Index forecast in other sectors

Each sector sets its own indexation rules. Some sectors index once a year at a fixed time with a variable percentage, like JC 200. Other sectors index at a variable time but with a fixed percentage.

An example of the latter system is the chemical sector. That is JC 116 for manual workers and JC 207 for white-collar workers. There, wages will be indexed by 2% in May 2026.

A next indexation is already expected in October 2026.

Check the rules in your sector via Joint Committees > Determining the wage > Indexation rules.

Sources