The “cent-based indexation system” explained: What does this mean for your salary?

The Belgian federal government is introducing a new measure that changes wage indexation for higher wages: the new cent-based indexation system. This is not an index jump, but a restriction that will mainly affect employees with higher salaries. Find out what this will exactly mean for your salary and how companies can respond to this new measure.

What’s changing?

The “cent-based indexation system” measure explained:

From 2026 and again in 2028, automatic wage indexation for higher wages will be adjusted. For employees with a gross wage of up to €4000 per month, everything will remain the same: they will retain the full percentage indexation. For example, if you earn €3500 and the index is 2%, your wage will increase by €70.

Things are changing for those earning more than €4000 gross. The part of the wage above that threshold will no longer be indexed on a percentage basis. Instead, you will receive a fixed amount, calculated based on the indexation of €4000. With an index of 2%, this means an increase of €80, regardless of whether you earn €5000, €8000 or €12.000. The higher the salary above that threshold, the smaller the effect of the indexation.

Nothing changes for wages below €4,000. A similar principle applies to benefits, but with a threshold of €2,000. In 2027, the traditional indexation will continue to apply to everyone.

Why is this important?

This measure could cause a psychological shift. Employees with higher wages will notice that their purchasing power is less automatically protected. This may lead to questions about appreciation and fairness, which in turn may affect motivation and salary negotiations, especially in sectors where talent is scarce. For employers, this offers an opportunity to better control wage costs but also poses a challenge to remain competitive in a tight labour market.

Impact on motivation and perception

A recent Hays LinkedIn poll shows that 42% of respondents expect this measure to have little to no impact on motivation and negotiations. However, 37% say it is too early to draw conclusions. Opinions are divided, but one thing is clear: the subject is a hot topic.

How can companies deal with this?

Companies play a crucial role in how this change is perceived. Transparent communication is essential: explain why this measure exists and what its impact is, so that employees understand that this is a legal decision and not a choice made by the company. Avoid surprises by communicating honestly and in a timely manner.

In addition, organisations can focus on alternative incentives. These could include bonuses, training budgets, extra leave days or flexible working options. Non-financial benefits such as wellness initiatives or home working allowances can increase the total value of the salary package. Finally, it is important to strategically review your wage policy. Benchmark salary packages against the market, consider individual negotiations for key positions and focus on a total package that includes not only wages, but also growth opportunities.

What can employees do?

For employees with higher salaries, it is important to understand the “cent-based indexation system” and how their salary will evolve. Calculate the difference between the traditional indexation and the new measure so that you know what this means for your purchasing power. Use salary negotiations to discuss other benefits, such as bonuses, extra leave or training budgets. Also think about the long term: growth opportunities and flexibility can be more valuable than a small pay rise. Look beyond your gross salary and focus on the total value of your salary package, including pension plan, insurance and mobility.

Want to know how your salary package compares to the market? Discover all the latest figures and trends in our new Salary Guide 2026.