Increase in the wages of Belgian workers due to a law linking salary with the country´s inflation
Workers in Belgium will get an automatic raise in their salary by approximately 11 percent in January. According to a report in Reuters on Friday, December 23, this hike in salaries will take place in order to keep them at par with the rate of inflation in the country.
This is the first time in over half a century that such an increase in salary is being offered, after the inflation in Belgium reached at 10.35% in December. This marks the fourth month since the country has been facing inflation in double digits.
The report said, wages are increased due to an indexing system that links the wages of all Belgian workers with inflation, due to a law. This law, which is also present in Luxembourg, protects the purchasing power of its people, by keeping the wages of people at par with the rise or fall in the rate of inflation. As the cost of living due to high levels of inflations has increased, especially after the Ukraine war, such laws help safeguard their citizens.
Belgium reached its highest level of inflation since 1975, after reaching 12.27% in October this year. But interventions by the Belgian government, such as policies for lowering electricity prices as well as decrease in fuel prices, slightly eased the present rate of inflation.
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