Belgium: cross-industry agreement struck after months of deadlock

Following discussions that have dragged on for several months, the cross-industry agreement for 2021 and 2022 in Belgium has finally been struck. The so-called ‘Group of 10’ – made up of representatives of 5 trade unions and 5 employer federations – has agreed on a gradual net increase of €150 to the minimum wage, the first in over 10 years. Companies will also be entitled to 120 hours of largely tax-free “coronavirus” overtime before the end of 2022 and over-55s will be able to benefit from end-of-career jobs with a part-time share (either half-days or 80%). On the other hand, no agreement could be reached on the ceiling rate of wage increases, on which the unions were demanding more than the 0.4% offered by Belgium’s Central Council of the Economy (see article n°12375), so it will be up to the government to apply the council’s recommendation by royal decree. There will however be an opportunity to receive the one-off €500 ‘corona’ bonus, which was proposed by the government last month (see article n°12514). Pierre-Yves Dermagne, Belgium’s minister of economy and labour, who had pushed for an agreement, expressed satisfaction with the result. He says: “The agreement on the minimum wage is a major step forward for workers. A married worker with two children will see their net income increase by €63 in 2022, or a cumulative increase of around €110 net in 2024 and €163 net in 2026.” For their part, the trade unions still have to consult with their memberships in order to sign the agreement.