{"id":10956,"date":"2026-06-11T14:38:38","date_gmt":"2026-06-11T12:38:38","guid":{"rendered":"https:\/\/ibj.be\/?p=10956"},"modified":"2026-06-24T16:08:04","modified_gmt":"2026-06-24T14:08:04","slug":"the-new-cents-index-and-wage-moderation","status":"publish","type":"post","link":"https:\/\/ibj.be\/nl\/partnerblog\/the-new-cents-index-and-wage-moderation\/","title":{"rendered":"The new &#8220;cents index&#8221; and wage moderation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A new program law introducing changes to automatic wage indexation from 1 June 2026 was published in the Belgian official state journal (<a href=\"https:\/\/www.ejustice.just.fgov.be\/eli\/wet\/2026\/05\/30\/2026003986\/staatsblad\">Dutch<\/a> | <a href=\"https:\/\/www.ejustice.just.fgov.be\/eli\/loi\/2026\/05\/30\/2026003986\/moniteur\">French<\/a>). This newsflash explains the wage moderation mechanism and its implications, and outlines a couple of attention points for HR.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-831a342\" id=\"background\" data-block-id=\"831a342\"><style>.stk-831a342 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Background<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Parliament definitively approved the Programme Law, which introduces the widely debated &#8220;cents index.&#8221; The social partners within the Group of Ten unanimously proposed a technically simpler alternative &#8211; smoothing out energy prices &#8211; but the federal government rejected this proposal outright. For the De Wever government, the cents index is a budgetary necessity: the measure generates immediate additional revenue for the Treasury, helping to address the acute federal budget deficit.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-68f920b\" id=\"core-principle-partial-cap-on-indexation\" data-block-id=\"68f920b\"><style>.stk-68f920b {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Core principle: partial cap on indexation<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Automatic wage indexation is not being abolished, but will be partially capped twice during this legislative term:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>First moderation period:<\/strong> commencing 1 June 2026<\/li>\n\n\n\n<li><strong>Second moderation period:<\/strong> commencing in principle on 1 January 2028<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In the private sector, the measure applies exclusively to employees whose reference wage exceeds EUR 4,000 gross at the time the standard index adjustment would normally take effect.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-edbb7ba\" id=\"what-is-the-reference-wage\" data-block-id=\"edbb7ba\"><style>.stk-edbb7ba {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">What is the reference wage?<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The reference wage is the indexed fixed scale-based or contractual monthly base salary, expressed on a full-time basis. Bonuses, overtime supplements, year-end premiums, and holiday pay are excluded. For blue-collar workers, the hourly wage is converted to a monthly equivalent; for part-time employees, the wage is recalculated to a full-time equivalent based on their working time fraction.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-d1d0e53\" id=\"how-does-the-measure-work-in-practice\" data-block-id=\"d1d0e53\"><style>.stk-d1d0e53 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">How does the measure work in practice?<\/h4><\/div>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Reference<\/strong> <strong>wage<\/strong><\/td><td><strong>Effect<\/strong><strong><\/strong><\/td><\/tr><tr><td>Up to EUR 4,000 gross<\/td><td>Full index adjustment applies, whether agreed at sector or company level<\/td><\/tr><tr><td>Above EUR 4,000 gross<\/td><td>Fixed increase of EUR 80 per month (= 2% of EUR 4,000), supplemented by indexation on the full wage to the extent that the actual index adjustment exceeds 2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The threshold of EUR 4,000 will itself be indexed at the start of the second moderation period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Example<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider an employee with a reference wage of EUR 5,000 gross receiving an index adjustment of 2.50%:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Without wage moderation:<\/strong> EUR 5,000 \u00d7 2.50% = <strong>EUR 125<\/strong><\/li>\n\n\n\n<li><strong>With wage moderation:<\/strong> EUR 80 (fixed increase) + EUR 5,000 \u00d7 0.50% (only the portion exceeding 2%) = EUR 80 + EUR 25 = <strong>EUR 105<\/strong><\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-7bc2190\" id=\"end-of-the-moderation-period\" data-block-id=\"7bc2190\"><style>.stk-7bc2190 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">End of the moderation period<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Once the cumulative index adjustment during a moderation period reaches 2% and wage moderation has been applied, the moderation effect is deemed to have been achieved, and the moderation period comes to an end. All subsequent index adjustments may then be applied in full, until the start of the second moderation period, if applicable.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-f62a0b6\" id=\"employees-hired-during-a-moderation-period\" data-block-id=\"f62a0b6\"><style>.stk-f62a0b6 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Employees hired during a moderation period<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Employees who join after the start date of a moderation period are deemed to have undergone all index adjustments from that start date. This has two practical consequences:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Moderation effect already achieved:<\/strong> they benefit from standard index adjustments without restriction.<\/li>\n\n\n\n<li><strong>Moderation effect not yet achieved:<\/strong> they may still be subject to wage moderation at the next index adjustment.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A particularly notable point: employers may be required to pay a provisional wage moderation contribution in respect of these employees, even where wage moderation was not in fact applied to them and the employer therefore realised no savings whatsoever.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-9acf751\" id=\"conflicting-agreements\" data-block-id=\"9acf751\"><style>.stk-9acf751 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Conflicting agreements<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The Programme Law provides that any agreement that conflicts with the wage moderation rules shall be deemed not to exist. Whether this will have significant practical impact \u2014 bearing in mind the limited consequences typically associated with non-compliance with the wage norm \u2014 remains an open question.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-09349c6\" id=\"wage-moderation-contribution-financial-impact-for-employers\" data-block-id=\"09349c6\"><style>.stk-09349c6 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Wage moderation contribution: financial impact for employers<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The government intends to recoup part of the savings employers realise through wage moderation. Employers are therefore required to transfer <strong>half of the savings achieved<\/strong> (including social security contributions) to the National Social Security Office (NSSO) via a new NSSO contribution code.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the example above, the employer&#8217;s saving amounts to EUR 20 (= EUR 125 \u2212 EUR 105). The wage moderation contribution therefore stands at EUR 10, to be increased by the standard social security contributions.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-95d4a9b\" id=\"consolidated-wage-moderation-contribution\" data-block-id=\"95d4a9b\"><style>.stk-95d4a9b {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Consolidated wage moderation contribution<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">From the first day of the quarter following the quarter in which the moderation effect is achieved during the second moderation period, a definitive consolidated wage moderation contribution becomes due in respect of all wages subject to an indexation mechanism. The NSSO collects this contribution on a quarterly basis.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-868145f\" id=\"key-points-for-hr\" data-block-id=\"868145f\"><style>.stk-868145f {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Key points for HR<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The introduction of the cents index brings additional payroll administration obligations. HR teams will need to carry out, or commission, adjusted payroll calculations and, where applicable, accurately compute the wage moderation contribution.<\/p>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-84e0813\" id=\"specific-consideration-for-flexible-benefit-plans\" data-block-id=\"84e0813\"><style>.stk-84e0813 {margin-bottom:15px !important;}<\/style><h4 class=\"stk-block-heading__text\">Specific consideration for flexible benefit plans<\/h4><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Companies operating a flexible benefit plan (cafeteria plan) under which a choice budget is created through a salary sacrifice arrangement should integrate the principles of wage moderation and the wage moderation contribution into their policy. In practice, the reference wage prior to the salary sacrifice is often linked to the sectoral indexation mechanism, with the resulting salary increase added back to the reduced monthly salary. Strictly speaking, this constitutes a breach of the Programme Law (and the wage norm) and may further give rise to additional cost through the wage moderation contribution becoming due \u2014 particularly where the reduced monthly salary also exceeds EUR 4,000. A range of approaches is available, each of which warrants careful examination.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Authors<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.deloittelegal.be\/lg\/en\/about\/profiles.stijn-demeestere+caf75d95.html\">Stijn Demeestere<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new program law introducing changes to automatic wage indexation from 1 June 2026 was published in the Belgian official state journal. This newsflash explains the wage moderation mechanism and its implications, and outlines a couple of attention points for HR.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63],"tags":[],"class_list":["post-10956","post","type-post","status-publish","format-standard","hentry","category-partnerblog"],"blocksy_meta":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The new &quot;cents index&quot; and wage moderation - IBJ - IJE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ibj.be\/nl\/partnerblog\/the-new-cents-index-and-wage-moderation\/\" \/>\n<meta property=\"og:locale\" content=\"nl_NL\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The new &quot;cents index&quot; and wage moderation - IBJ - IJE\" \/>\n<meta property=\"og:description\" content=\"A new program law introducing changes to automatic wage indexation from 1 June 2026 was published in the Belgian official state journal. 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