Be Aware - March 2026

Belgium approves temporary exemption to automatic indexation of remuneration

Most employees in Belgium are covered by a collective bargaining agreement stipulating automatic salary indexation.

The indexation systems vary depending on the sector. Some joint committees index pay every year on a specific date, for instance on 1 January for the national auxiliary joint committee for white-collar employees (no. 200). Other joint committees increase salaries by 2% each time the consumer price index increases by 2%, for instance the joint committees for the chemical industry (no. 111 and no. 207). And some joint committees only index salaries up to a certain cap, for instance the joint committee for insurance companies (no. 306).

At political level, the debate on automatic indexation has been going on for years, notably when the high inflation during 2021 and 2022 resulted in an indexation by more than 10%.

The current coalition government announced it would reform automatic indexation. On 11 March 2026, the commission for social affairs in Parliament approved the articles of a draft Programme Act on temporary exceptions to the automatic indexation.

Key principles

The basic idea is that nothing changes for employees with a monthly fixed remuneration up to EUR4,000. For part-time employees, this threshold applies to the hypothetical full-time remuneration.

If an employee earns more than EUR4,000 gross per month, as of 1 June 2026:

• The first EUR4,000 is in principle only indexed by a maximum of 2%.
• The portion of salary above EUR4,000 will no longer be indexed as of 1 June 2026.
• This will continue until the salary reaches the amount of full remuneration on 1 June 2026. At that point, the current collective bargaining agreements on automatic indexation will apply.

This moment will vary from person to person, as it depends on when the amount of the indexations applied on the remuneration below the threshold will reach the first hypothetical indexation on the part of the remuneration above the threshold.

Rule when normal indexation exceeds 2%

If the normal indexation exceeds 2%, the full remuneration will be indexed by a percentage equalling the difference between the normal indexation and 2%. This comes on top of the indexation by maximum 2% applied to the first EUR4,000 gross.

For example, if an employee earns EUR10,000 gross per month and the indexation is 2.2%, the indexation equals the sum of EUR20 (0.2% of EUR10,000) and EUR80 (2% of EUR4,000). The difference between the uncapped remuneration would be EUR120 gross per month.

This cap for the indexation will apply as of 1 June 2026. The same rule will apply as of 1 January 2028, but with the remuneration cap at the indexed amount of EUR4,000.

Financial effects and new social security contribution

Not applying the automatic indexation in full has a negative impact for the employee, but also for the Belgian state. Limiting indexation also reduces the calculation basis of the tax withholdings and social security contributions.

The draft Act introduces a new social security contribution to counter this effect. This new employer contribution equals 50% of the cost saving for the employer resulting from the fact the remuneration is only partially indexed. In the example above, the employer would pay a social security contribution of EUR60 per month.

This new social security contribution applies both to the cost savings resulting from the 2026 partial indexation and those resulting from the 2028 partial indexation.

The rules concerning the payment modalities for this new contribution are the same as the ones for the normal social security contributions.

While the draft Act stipulates a temporary partial automatic indexation in 2026 and 2028, the new social security contribution applies for an undefined duration.

The full assembly of Parliament still has to vote on the draft Act. As it concerns a government proposal, we assume Parliament will promulgate it in the coming weeks through a vote split between the government and the opposition parties.

 

Belgium to introduce reduced obligations when terminating an employee’s contract in the first six months

When an employee starts a new job, sometimes the employer or the employee quickly realises the employment relationship isn’t going to work.

If the employer wants to terminate the employment contract, this employer currently has to follow these notice periods:

 

If the employee wants to terminate the employment contract, this employee currently has to follow these notice periods:

 

For the employer, it’s possible to terminate the contract by respecting a notice period, but if the employment contract is suspended because the employee has taken sick leave or holiday leave, the notice period is also suspended. Bearing in mind the sick pay normally due, a termination by respecting a notice period can be even more expensive than paying an indemnity in lieu of notice.

Up to 2013, employers could insert a trial clause in the employment contract. When invoking a trial clause, the notice period was only one week. The clause couldn’t be invoked in the first month of employment and the employee had to be willing to sign an employment contract with a trial clause.

The coalition agreement of the current federal government published in January 2025 stipulated the government wanted to reintroduce the trial clause so both parties can terminate the employment contract by respecting a notice period of one week during the first six months of employment.

Introducing new notice periods

The government has now submitted a draft Act to Parliament to implement this intention. The draft Act doesn’t reintroduce the trial clause but rather amends the clause in the Act of 3 July 1978 concerning employment contracts stipulating the applicable notice period.

The new notice periods will apply automatically and the employment contract won’t have to include a specific clause. The new notice period is one week if the employee has less than six months’ continuous employment. This holds both for a notice period issued by the employer and one issued by the employee. The draft Act doesn’t change notice periods applicable when the employee has been employed for at least six months.

Parliament still as to approve the draft Act. And it will enter into force on the first day of the month following the month of publication in the Belgian Official Journal.

Under the new legislation, an employer will have a clear interest in terminating the employment contract before the six-month threshold is reached. The notice period will only be one week during the first six months, but then it will automatically change to six weeks for the subsequent quarter.

Collective bargaining agreement no. 109

The six-month threshold is where collective bargaining agreement no. 109 on the reasons for a dismissal becomes applicable. This collective bargaining agreement gives employees the right to request a written statement on the detailed reasons for dismissal and the right to claim an indemnity of between 3 and 17 weeks’ remuneration for manifestly unreasonable dismissal. This is defined as a dismissal not based on either the employee’s conduct or the organisational requirements of the employer and which a normal and reasonable employer would not have implemented.

When an employer terminates an employee’s contract before they reach the six-month threshold, the risk is clearly lower but there is still some risk. Some specific protections against dismissal aren’t subject to any qualifying period of continuous employment, for instance the one applicable to an employee lodging a complaint alleging harassment.

A terminated employee might also invoke the prohibition on abusive of rights under general contract. It’s then up to the employee to prove the employer used the right to terminate the employment contract in an abusive way and the prejudice resulting from this abuse.