Belgian Wage Growth Lags Behind Neighbors, Potential for Increases in 2026

Belgium’s wage growth is currently trailing that of its neighboring countries – the Netherlands, Germany and France – by 1.1 percent, according to recent observations. This disparity has prompted the ABVV, a major Belgian trade union, to assert that employees have been undercompensated for the past two years. Yet, a reduction in wage cost disadvantages may create an opportunity for wage increases in the coming year.

Wage Disparity and Union Response

The ABVV (Algemene Belgische Werkersvakbond – General Belgian Workers’ Union) has voiced concerns over the slower pace of wage increases in Belgium compared to its neighbors. The union argues that this difference demonstrates employees have not received their due compensation over the last two years.

Shifting Employer Landscape

Recent developments suggest a potential shift in the dynamics between employers and employees. The “dramatic show of employers” regarding wage costs is reportedly over, indicating a possible softening of resistance to wage increases. This change in stance could provide a margin for wage adjustments in 2026.

Historical Context: Belgium-Netherlands Relations

Belgium and the Netherlands share a long history of close economic and cultural ties. As part of the Low Countries, the region has historically demonstrated dense economic and cultural interconnections dating back to the Middle Ages. Belgium-Netherlands relations are marked by shared institutions, language, and aligned security interests, fostering a collaborative environment that influences economic policies, including wage negotiations.

The Ghent System and Labor Relations

Belgium, along with the Netherlands, has historically been a proponent of the “Ghent” system of unemployment insurance. This system, characterized by trade union involvement in the administration of unemployment benefits, has traditionally strengthened the position of labor in wage negotiations. However, recent research suggests that labor movements in both countries have partially relinquished some of their institutional resources, potentially impacting their bargaining power.

Looking Ahead

The combination of lagging wage growth, a potential shift in employer attitudes, and the historical context of strong labor relations in Belgium suggests a possibility for wage increases in 2026. The ABVV will likely continue to advocate for fair compensation for employees, leveraging the changing economic landscape to push for improved wage outcomes. Further developments will depend on ongoing negotiations between unions, employers, and the government.