Belgium faces declining real wage growth and economic stimulus debates

Real wage growth in Belgium has experienced a significant decline as employers show increasing reluctance to raise fixed labor costs. According to the Randstad ‘Hudson Reward Survey’, while automatic wage indexation prevents gross salaries from falling, additional raises have slowed to just 0.89 percent. Approximately 40 percent of employees received no salary increase beyond indexation, and the median individual increase has dropped from 1.5 percent in 2022 to roughly 0.9 percent.

To preserve employee purchasing power without increasing fixed costs, companies are increasingly turning to alternative compensation. This includes a record rise in the use of stock options and non-monetary benefits, which now cover 11 percent of the workforce, alongside meal vouchers and collective bonuses.

In response to broader economic challenges, the MR political group has proposed measures to stimulate growth and support businesses. Their platform includes administrative simplification, extending flexi-jobs to the self-employed, and providing stronger support for innovation and investment. Other proposals aim to reduce the burden on SMEs through lower VAT on new constructions and stable energy taxation, emphasizing growth as a primary solution to budgetary challenges.