The 2021 salary indexation has been announced, businesses subject to Joint Industrial Committee 200 (JIC 200) should make the necessary changes to their payrolls immediately.

Each January, the JIC 200 completes a salary review and recommends an adjustment in keeping with the cost of living. That adjustment is referred to as salary indexation and affects employees of businesses that are subject to JIC 200. The JIC 200 group is for employers who do not belong to any other committee and is the largest joint committee in Belgium.

The indexation percentage for January 2021 amounts to 0.95%. With the adjustment finalised, employers must ensure that their employees’ gross salaries are increased by 0.95% from 1 January 2021. In addition to the salary increase, the adjustment mechanism also specifies an annual premium that should be paid in June 2021. The premium for 2021 (if it isn’t replaced by a benefit of equal value) amounts to €267.64.

For more information on Belgium’s tax and payroll landscape, browse activpayroll’s Global Insight Guide to Belgium.

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