Freeze. Repeatedly reprimanded by the European Commission because wages are too high compared with competitiveness, Belgium has opted for wage moderation for the next two years.
Belgian wages follow a system introduced by law in 1996, known as competitiveness maintenance, defining a margin for increase depending on the wage levels in the neighboring countries (Germany, France and the Netherlands). According to the Central Economic Council – an advisory institution on economic issues –, there
Belgium: pay freeze in 2013 and 2014 without questioning the indexation on inflation
The government run by socialist Elio Di Rupo reached an agreement on the draft 2013 budget providing for a pay freeze in the country, which will not affect average and low wages and minimum wage. (Ref. 120679)
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