[Belgium] 2024 base salary increase planned by majority of companies

In new research, more than half of Belgian companies indicated they would be increasing basic pay in 2023 but almost all are prepared to boost wages in 2024, The Brussels Times reports.

This is, in part, due to the smaller automatic indexation. Belgium is among the few countries where automatic wage indexation is implemented to protect purchasing power. 

In 2022, skyrocketing inflation reportedly led to the wages of thousands of employees increasing by more than 10 per cent. The pay hike was welcomed by workers and unions, however, it reduced the wriggle room for individual salary increases and bonuses.

Belgium’s January 2024 annual indexation rates were significantly lower for workers in all sectors (all under 2 per cent) and the change is reflected in the number of companies prepared to increase their employees’ basic salaries.

"The high indexation rate in 2023 forced companies to play it safe last year," Paul-Etienne Siegrist - senior manager at Hudson - told The Brussels Times. "Today, however, they have more budgetary room for manoeuvre, and we see that they are using it mainly to increase the base salary."

The annual salary survey by HR consultancy Hudson - based on a survey of 188 Belgian organisations - revealed that more than eight out of ten Belgian companies (84 per cent) are reportedly willing to increase base salaries in 2024, compared to 57 per cent last year.

No promotions

Twenty-eight per cent of surveyed organisations reportedly plan to allocate a budget of more than 2.5 per cent of the total wage bill to pay increases this year, compared to only 8 per cent of organisations in 2023.

While four in ten (39 per cent) of organisations will set a separate budget for variable pay in 2024. Most organisations intend to allocate more than 5 per cent of their total salary budget to variable pay. 

Regarding job levels, the survey showed that the median for variable pay among executives is 7 per cent of the salary bill. The figure for management and directors is 10 per cent.

Less than 1 per cent of the overall salary budget will be devoted to promotions with around seven in ten organisations not even planning a budget specifically for promotions in 2024.

Mr Siegrist said that it takes more than salary to attract and retain talent.

"Non-financial benefits, such as flexibility, career development but also the efforts a company makes in terms of mental well-being or how it looks at mobility, among others, are still gaining importance," he said, adding that companies must integrate this into their overall remuneration strategy.

Source: The Brussels Times

(Links and quotes via original reporting)

In new research, more than half of Belgian companies indicated they would be increasing basic pay in 2023 but almost all are prepared to boost wages in 2024, The Brussels Times reports.

This is, in part, due to the smaller automatic indexation. Belgium is among the few countries where automatic wage indexation is implemented to protect purchasing power. 

In 2022, skyrocketing inflation reportedly led to the wages of thousands of employees increasing by more than 10 per cent. The pay hike was welcomed by workers and unions, however, it reduced the wriggle room for individual salary increases and bonuses.

Belgium’s January 2024 annual indexation rates were significantly lower for workers in all sectors (all under 2 per cent) and the change is reflected in the number of companies prepared to increase their employees’ basic salaries.

"The high indexation rate in 2023 forced companies to play it safe last year," Paul-Etienne Siegrist - senior manager at Hudson - told The Brussels Times. "Today, however, they have more budgetary room for manoeuvre, and we see that they are using it mainly to increase the base salary."

The annual salary survey by HR consultancy Hudson - based on a survey of 188 Belgian organisations - revealed that more than eight out of ten Belgian companies (84 per cent) are reportedly willing to increase base salaries in 2024, compared to 57 per cent last year.

No promotions

Twenty-eight per cent of surveyed organisations reportedly plan to allocate a budget of more than 2.5 per cent of the total wage bill to pay increases this year, compared to only 8 per cent of organisations in 2023.

While four in ten (39 per cent) of organisations will set a separate budget for variable pay in 2024. Most organisations intend to allocate more than 5 per cent of their total salary budget to variable pay. 

Regarding job levels, the survey showed that the median for variable pay among executives is 7 per cent of the salary bill. The figure for management and directors is 10 per cent.

Less than 1 per cent of the overall salary budget will be devoted to promotions with around seven in ten organisations not even planning a budget specifically for promotions in 2024.

Mr Siegrist said that it takes more than salary to attract and retain talent.

"Non-financial benefits, such as flexibility, career development but also the efforts a company makes in terms of mental well-being or how it looks at mobility, among others, are still gaining importance," he said, adding that companies must integrate this into their overall remuneration strategy.

Source: The Brussels Times

(Links and quotes via original reporting)