Due to rising company costs, largely caused by automatic indexation, financial tightness remains a challenge for Belgian businesses. This is especially the case in Brussels.
Small and medium-sized enterprises (SMEs), which represent around 99% of the total number of Belgian companies, say they don't have enough financial breathing space to focus on their pay policy. This means employees are less likely to receive individual pay raises (on top of wage indexation), or bonuses, HR services provider SD Worx reported.
"More than four in ten SME employers indicate that there is no financial room in 2025 for new remuneration priorities. Automatic wage indexation is a gross pay increase for everyone, regardless of performance, leaving less room for additional individual rewards," said Anneleen Verstraeten, SME consultant at SD Worx.
In Brussels, as many as 60% of employers see no wiggle room to give such financial incentives. In Flanders, this figure is 40%, while in Wallonia it stands at 44%.
However, some companies do indicate there are possibilities. In Brussels, this figure is also the highest among all the regions (16%). In Flanders, 15% indicate that there are possibilities, while just 6% of Walloon companies share this opinion.
Individual reward
Six in ten SME employers choose to grant pay increases, but only to employees who "deserve them".
"We see that the majority of employers are keen to emphasise individual performance," said Verstraeten.
SMEs' priorities differ by region: in Brussels, employees are often offered company bicycles. In Flanders, meal vouchers and bonuses remain popular, while in Wallonia bonuses and gross wage increases are the main options.
