Belgium’s smoothed health index rose to 100.37 points in June, crossing the critical pivot threshold that triggers automatic wage indexation.
The development means that more than 2 million workers, including public servants and private-sector employees, will see their salaries adjusted this summer to maintain purchasing power.
The indexation mechanism is a cornerstone of Belgium’s labor market, designed to protect real wages against inflation.
Although headline inflation has shown signs of easing, the smoothed index—which averages monthly data to reduce volatility—remained high enough to breach the pivot point.
This ensures that the cost-of-living increase is formally recognized and compensated through statutory adjustments.
For businesses, the indexation translates into higher labor costs, which may pressure margins in sectors with rigid pricing structures.