In addition to the private sector (CP 200), the sector with the most employees, the automatic indexation of salaries, based on the health index, will concern January 2025 workers in the hospitality sector (under Joint Commission 302), the food industry (CP 118 and CP 220) or even road transport (CP 140.03). For this first month of 2025, approximately 1 million people will thus benefit from an increase in their gross salary of nearly 3.57% on average.
How does salary indexation work?
The principle of salary indexation is simple: when the prices of goods and services exceed a certain threshold, most salaries are automatically increased, in order to guarantee the maintenance of purchasing power despite inflation, which has increased from 3 .20% in November to 3.16% in December 2024, and the increase in the cost of living.
In our country there is no single rule regarding salary indexation. It differs from person to person based on the rules established by over 200 different industries.
However, two groups stand out: those who depend on the pivot index and those who index at a fixed time.
What is the pivot index used for?
Once exceeded, the pivot index triggers an automatic wage indexation of 2% for civil service employees and people receiving social benefits (e.g. pensions or disability benefits).
According to the Planning Bureau, this index should be exceeded twice in 2024: in March and in October.
What are the roles of the health index and the smoothed health index?
The smoothed health index, which consists of a 4-month average of the health index, is the reference index for salary indexation. In addition to this averaging principle, this index also differs from the consumer price index in that it excludes alcoholic beverages, tobacco and fuels.
