The kern (restricted council of ministers) has reached a conciliation proposal in the thorny issue of wage negotiations, which divide unions and bosses. It was the cabinet of Prime Minister Alexander De Croo (Open VLD) who made the announcement on Monday.
If the well-being envelope will indeed be used at 100%, part of this budget will be allocated to the increase in the minimum wage, whereas it is usually used only for social allowances.
The lowest unemployment benefits will increase by 1.3%, less than the maximum of 3.5%. Thanks to the savings made at this level, the minimum wage will therefore be increased with the aim of avoiding the unemployment trap as much as possible. “A first”according to the cabinet of the Premier.
As for the wage standard, it will remain as planned at 0% for the next two years, excluding indexation, which will be fully applied. In companies in good health, a bonus of a maximum of 500 euros may be awarded to workers, provided that a sectoral agreement is concluded on this subject. A waiver clause is provided for companies that cannot afford it. Finally, companies that have recorded particularly high profits will be able to award a bonus of up to 750 euros.
After the failure of the social partners, the file had fallen on the table of the government. The tensions between the employers’ bench and the union bench subsequently highlighted the discrepancies between the right wing and the left wing of the De Croo government.
The N-VA denounces a “disappointing and harmful” wage agreement
An increase also for pensions
The Minister of the Economy Pierre-Yves Dermagne (PS), welcomed the agreement reached on the increase in the lowest unemployment benefits “against which the liberals have opposed tooth and nail”. “It’s absolutely not about rewarding inactivity. The reality is that the lowest unemployment benefits are well below the poverty line”he repeated.
“Maintaining indexation is the most important measure to protect the purchasing power of citizens, as international research shows. On top of that, there will be a bonus for workers in companies that perform well despite the successive crises. It is important that workers can share the added value they achieve in their companies”he added.
“The agreement puts an end to the uncertainty and concerns of citizens. We are going, as we have always promised, by the way, to increase all pensions and minimum allowances”welcomed the Minister of Pensions and Social Integration, Karine Lalieux (PS). “The agreement will strengthen the purchasing power of pensioners, welfare recipients, people with disabilities and invalidity. In the absence of an agreement between the social partners, the government has assumed its responsibilities. A lack of agreement on this envelope of almost a billion euros was not an option for the socialists”she further emphasized.
Concretely, pensions as well as social allowances will experience several increases in 2023 and 2024 following this agreement. Minimum pensions will thus increase by 2% on 1 July 2023. This will also be the case for pensions that entered into force in 2018, while those that entered into force before 2008 will increase by 1.2% on the same date. We will note a further increase of 2% in the amount of the salary ceiling on January 1, 2024 and of 3.8% in the holiday pay for pensioners on May 1, 2023 (and + 2.55% on May 1, 2024). Finally, the integration income and the income replacement allowance as well as the Grapa (income guarantee for the elderly) will increase by 2% from July 1, 2023.
Review the 1996 law
“It was important to decide quickly, to preserve social peace and take over from the group of 10. The continuation of the revaluation of the minimum wage and especially that of allowances as well as the lowest pensions for an amount of one billion euros euros are great news”for his part estimated the Vice-Premier Ecolo Georges Gilkinet.
As for the wage standard, “we will no longer be able in the future to ignore the revision of the 1996 law (in particular establishing the wage standard mechanism, editor’s note) which is a real wage straitjacket and which is pointed out by international institutions”continued the ecologist according to whom this standard will have, in the future, “taking into account the issues of energy cost and raw materials, which are ever more important in the efficiency of tomorrow’s economy”.
Finally, Deputy Prime Minister MR David Clarinval also expressed his satisfaction. “Liberals fought to reward workers and we achieved that with about 2/3 of the unemployment envelope going to the minimum wage increase. This money will go to the workers and avoid the pitfalls to work”, concluded the liberal.