On 22 September 2025, the Royal Decree of 12 September 2025 implementing article 7, §1 of the Act of 26 July 1996 on the promotion of employment and the preventive safeguarding of competitiveness was published. This Royal Decree sets the maximum wage cost margin for the 2025-2026 period at 0%. The publication of this Royal Decree renders the wage norm legally binding. However, this 0% margin does not come as a surprise.
The Act of 26 July 1996 (aimed at safeguarding the competitiveness of Belgian companies) provides among other things that at least every two years, an interprofessional agreement must determine the maximum wage cost increase margin for the following two years.
The margin is set on the basis of a report by the Central Economic Council (CEC) on Belgium’s wage cost handicap compared to neighbouring countries. The evolution of the wage cost (which must remain within the available margin) refers to the nominal increase in the average wage cost per employee within the company, expressed in full-time equivalents. The concept of wage cost is defined very broadly: it includes wages and benefits in cash and/or in kind, as well as employer social security contributions. To verify whether the available wage cost margin has been exceeded, the average wage cost per employee in the 2025-2026 period is compared with that in 2023-2024.
In principle, the margin is established by a collective bargaining agreement (CBA) concluded within the National Labour Council, which is subsequently made binding by the King. In the absence of a consensus between the social partners, government mediation is foreseen. If the mediation also proves unsuccessful and no agreement between the social partners is reached, the King (the Government) may unilaterally determine the maximum margin by Royal Decree.
In this case, no interprofessional agreement was reached, and mediation was unsuccessful.
The Government has therefore set the margin by Royal Decree of 12 September 2025. This was also the case for the previous margin (for the 2023-2024 period), which was likewise established by Royal Decree and set at 0%.
The 0% margin is not a surprise. According to the CEC’s technical report of 19 February 2025, this was the maximum margin considered available to preserve the competitiveness of Belgian companies.
A 0% margin does not mean that wages are completely frozen. Only wage cost increases resulting from agreements are targeted by the prohibition on exceeding the available margin. In concrete terms, the 0% margin means that collective or individual wage increases are only possible insofar as the average wage cost in the company for the 2025-2026 reference period does not increase compared to the 2023-2024 reference period.
Indexations and scaled-based increases (increases linked to seniority laid down in CBAs) remain guaranteed. Profit premiums, CBA 90 bonuses and purchasing power premiums also fall outside the scope of the wage norm.
Sanctions are foreseen in case of the available margin being exceeded.
Key massage
Make sure that the average wage cost in your company for the 2025-2026 reference period does not exceed that of the previous reference period (2023-2024). One or more employees may receive wage increases, provided that the company’s average wage cost does not exceed that of the previous reference year.
Wage increases resulting from mandatory indexations and existing scaled-based increases remain possible and guaranteed.
