The cent index is approaching

Are these measures official yet?

Not yet. In this article, we will discuss what we currently know. The text of the law still needs to go through several steps, including approval by parliament and publication in the Moniteur belge. Therefore, these measures are not yet legally binding. Through Lex4You, we will keep you updated on further developments. 

What is the cent index?

The federal government plans to apply a cent index twice during this legislative term, specifically in 2026 and 2028. In this indexing, the salary of employees with a gross monthly salary above 4,000 euros will only be indexed based on that 4,000 euros, up to 2%.
Any amount above that will not be fully adjusted. Employees with a salary below 4,000 euros will receive full indexing.

How do you calculate the cent index?

Each sector in Belgium has its own indexing system. Therefore, the timing and percentage of salary indexing can vary by sector. In the examples below, we will assume an index of 2% and 2.2%.

On which salary do you calculate the cent index?

The cent index is calculated on the full-time, fixed base salary. The threshold of 4,000 euros applies to the full-time salary. For part-time employees, that limit is recalculated proportionally. Extralegal benefits such as a company car or meal vouchers, as well as bonuses and premiums, are not included.

An index of 2 percent

On June 1, the salaries of a company in sector x are indexed by 2%.

Jan, Bart, An, and Piet all work in a company that belongs to sector x. Jan has a gross monthly salary of 3,000 euros, Bart 4,500 euros, and Piet 5,000 euros.

Since Jan's salary does not exceed 4,000 euros, there is no index limitation for him.
The index for Piet and Bart is capped at 4,000 euros. Therefore, Piet and Bart receive an index of 80 euros, which is 2% on 4,000 euros instead of 90 or 100 euros. The portion of Piet and Bart's salary that exceeds 4,000 euros is not indexed.

An index of more than 2 percent

What if the index is more than 2%? Suppose on June 1, the salaries of a company in sector x are indexed not by 2 but by 2.2%. What does this mean for Jan, Piet, and Bart?

The cent index is therefore only applied to the first 2%. Everything above this limit is fully indexed.

In our example, this means that for Bart and Piet, there is no index limitation for the 0.2% (i.e. 2.2% - 2%).

If the monthly index figure is lower (as in sectors with quarterly indexing), you must apply the cent index until the total index reaches 2%. Consider the construction sector PC 124.

A limited index and a contribution

With the cent index, you must only apply a limited indexing to the part of the salary above 4,000 euros gross.
As an employer, you do not have to grant a part of the indexing to your employees. However, be careful, as half of this goes directly to the government via a so-called wage moderation contribution.

A simple example: Piet earns 5,000 euros gross and the indexing is 2%. By applying the cent index, 20 euros less is indexed on his salary of 5,000 euros. Considering an employer's contribution of 25%, the total saving amounts to 25 euros. Half of that, i.e. 12.5 euros, must be paid to the government.

From when will the cent index be applied?

The start date for the cent index is set for June 1, 2026. Sectors such as PC 202 (Joint committee for employees in the retail food sector) and PC 142.03 (Joint Subcommittee for paper recovery) that typically have an index adjustment in June will be the first to be affected.

For PC 200, which has an annual index, the cent index will only take effect on January 1, 2027.

What does Securex do for you?

Securex will perform the calculations for you in line with the provisions of this regulation.

Source

• draft program law