Public sector pay and social benefits will only be increased once in 2023, according to the Federal Planning Bureau.
On Tuesday, the Federal Planning Bureau revealed that the central index will only be exceeded once in 2023, resulting in inflation having a smaller impact in 2023.
Based on recent figures from Statbel, they expect the index to be reached by early April, which will lead to social benefits and salaries in the public sector to be increased by 2% in May and June respectively.
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In comparison, the last time the central index was reached was November of last year, which has led to an 'unprecedented' wave of wage indexations in December and January.
Furthermore, the Federal Planning Bureau also expect consumer prices to fall from 9.59% to 5.3%, with 2% being seen as the benchmark for a 'normal' rate of inflation. This should also have an impact on private sector pay, but at a reduced pace which differs between sectors.
