A new report suggests that the gap between wage costs in Belgium and in neighbouring countries is growing smaller.
A preliminary report from the Central Economic Council (CEC) indicates that Belgium currently has a 1% wage handicap. This could show positive results for the country by 2025, La Libre reported on Saturday.
In Belgium, a "wage handicap" refers to the difference in labour costs between Belgian companies and those in neighbouring countries like Germany, France and the Netherlands. It measures whether Belgian firms face higher labour costs than their foreign competitors, which could make their products and services less competitive, especially in export sectors.
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Significant wage indexation in 2022 and 2023 meant that the wage handicap was approaching 10%, but this is no longer the case.
"It is very likely that the wage handicap will turn into a 0.5% wage advantage within six months," one of La Libre's sources reported.
The CEC’s preliminary report precedes the final report on wage standards, which is expected in early 2025.
