30/01/09

Indexation of salaries in the National Auxiliary Joint Committee for White-collar Workers (JC n° 218)

The indexation of salaries in joint committee (JC) n° 218 raises certain issues which are highlighted as follows.

In Belgium, salaries are adjusted according to the increase of the prices of consumer goods in order to safeguard the purchasing power of the workers. How this indexation occurs, differs from one sector to another. For employees who fall under the scope of JC n° 218, the salary is adjusted once a year following the increase in living costs. This adjustment occurs at the beginning of every year (officially in January). In 2009, the salaries of white-collar workers must increase – due to the indexation - by at least 4.51 % [1].

Contrary to what people often believe as true, the salary of all white-collar workers who fall under JC n° 218 must be indexed. It is incorrect to think that the salary of white-collar workers should not be indexed because their profession cannot be sorted as one of the classified functions of JC n° 218.

The obligation to adjust salaries according to the evolution of the index can cause problems for foreign workers employed in Belgium falling under the scope of JC n° 218 and who are guaranteed a net salary. The indexation usually affects the standard gross salary. However, the gross salary of foreign workers with a guaranteed net salary can vary and definitely does not follow the evolution of the net salary [2]. In order to tackle this issue in a practical way, one can choose to increase the guaranteed net salary in January. In which case, the employer needs to inform the employee regarding which part of the salary increase is aimed at following the evolution of the index.

Before applying the indexation to foreign employees, it is wise to verify whether Belgian labour law, and definitely the rules regarding indexation, are applicable to those concerned.

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