What exactly is the cent index again?
The budget agreement of November 2025 introduced the so-called cent index for wages above the median of 4,000 euros gross (or an hourly wage of 24.29 euros in a 38-hour week). This measure temporarily limits the indexing of certain higher wages, pensions and social benefits to 2% in 2026 and 2028.
The cent index consists of three components:
• an index moderation for certain higher wages
• a special wage moderation contribution;
• a consolidated special wage moderation contribution.
What does this mean concretely?
Because wages above 4,000 euros gross are only partially indexed, your labour costs increase less than with a classical indexation. However, a wage moderation contribution is withheld on this advantage.
For your employees with a gross wage up to and including 4,000 euros, everything remains unchanged. For employees with gross wages above 4,000 euros, a cap is applied. They receive a maximum of 2% on 4,000 euros (i.e. 80 euros) in 2026 and 2028.
An hourly wage is multiplied by the full-time weekly working hours, multiplied by 13 and divided by three.
For part-timers, the wage is converted to a full-time wage based on the employment fraction.
A simple example
When the central index is exceeded and the indexation is 2%, Maud's gross wage increases by 80 euros with a monthly wage of 4,000 euros. This is the case both with the ordinary indexation and with the cent index.
If Maud earns 5,000 euros gross per month, her wage would increase by 100 euros with a classical indexation. Under the cent index, however, this increase is capped at 80 euros.
As an employer, you save 20 euros this way. Taking into account an employer's contribution of 25%, the total saving amounts to 25 euros. Half of that amount, or 12.5 euros, must be transferred to the government.
What if the index is more than 2%?
If the index is higher than 2%, the part above 2% will be fully applied.
A simple example:
Your employee earns 4,500 euros gross and the index is 2.5%. The cent index up to 2% is applied on 4,000 euros.
4000 x 2% = 80 euros
The 0.5% is applied on 4,500 euros = 22.5 euros
So you get a total indexation of 102.5 euros, or a gross wage of 4,602.5 euros.
What if there are multiple indexations?
If there are multiple indexations, the cent index is applied until you reach a total of 2%. Afterwards, the wage is fully indexed again.
A simple example:
Your employee earns 4,500 euros gross. The first index is 1.5% and the second index is 1%.
First indexation of 1.5% on 1 July 2026
The cent index is applied up to 1.5% on 4,000 euros.
4000 x 1.5% = 60 euros. The wage thus becomes 4,500 + 60 = 4,560.
Second indexation of 1% on 1/1/2027
The cent index is still applied up to 0.5% (to reach 2%, i.e. 1.5 + 0.5%) on 4,000 euros. 4000 x 0.5% = 20 euros.
The remaining 0.5% is applied on 4,560 euros = 22.8 euros.
Your employee thus receives a total indexation of 42.8 euros, or a gross wage of 4,602.8 euros.
What does this mean for your company?
The cent index starts as soon as an indexation takes place in your sector and stops as soon as the 2% limit is reached.
Since each sector has its own index system, the cent index does not start everywhere at the same time.
So be sure to check when there is an index in your sector: Indexlist: indexations and wage adjustments | Securex
Example:
- If your employees belong to Joint Committee 314 (hairdressers and beauty care), you are the first in line.
- If your employees belong to the supplementary Joint Committee for white-collar workers, your employees will only be affected on 1 January 2027.
What is the wage moderation contribution?
Due to the cent index, you as an employer save on your labour costs. However, there is a new wage moderation contribution withheld on this advantage. You must transfer half of the saving to Social Security (RSZ).
The wage moderation contribution consists of 3 phases. The calculation itself is done using a complex formula.
- a special wage moderation contribution, during the first and second moderation periods;
- a provisional consolidated wage moderation contribution, as soon as the 2% moderation effect is reached for the first time;
- a definitive consolidated wage moderation contribution, as soon as the 2% moderation effect is reached for the second time. This still needs to be developed by Royal Decree.
What does Securex do for you?
We monitor the cent index for you and also calculate the correct wage moderation contribution. If you have any questions, please contact us via myHr@securex.be.
