Go back

Central index exceeded in August : what does this mean for the guaranteed average minimum monthly income?

10 September 2021 Tom Dirix Employers

Central index exceeded in August : what does this mean for the guaranteed average minimum monthly income?

The August index exceeded the guaranteed average minimum monthly income pivot (GMMMI). From 1 September 2021, the amounts will increase by 2 %.

Reading time: Read later?

What should we understand by the GMMMI?

The GMMMI is a specific lower limit in terms of your employees' wages. Good to know is that the GMMI is not the same as a monthly wage. The composition of the GMMI also takes into account the remuneration elements that the employee receives in the course of the year.

For example, elements such as an end-of-year bonus or variable pay are also included when determining the GMMI.

New amounts from 1 September

As a result of the 2% indexation, the amounts of the GMMMI change from 1 September 2021 (the previous adjustment was from March 2020).

Age and seniority conditions  Amounts
18 years and older EUR 1658.23
19 years and 6 months service EUR 1702.24
20 years and 12 months service EUR 1721.79

 

Social partners' agreement: future increases

The GMMMI does not only increase in case of indexation. A progressive increase is also provided for in the social agreement concluded between the social partners on 8 June 2021.

Thus the different amounts (see above) will be modulated to 1 amount.

In addition, a phased timing is foreseen to increase the current amounts.

Time of increase Amounts
1 April 2022 + EUR 76.28
1 April 2024 + EUR 35 
1 April 2026 + EUR 35 

Coupled with the planned increases in GMMMI, there will also be a further reduction in employer contributions on very low wages to offset the cost.

Source:

National Labour Council (Nar): CAO 43/15

 

Stay up to date with social legislation

Our experts are ready to inform, advise and support you.

Contact us

Share this post

Tom Dirix

Written by Tom Dirix

domeinverantwoordelijke kenniscentrum

Related articles

What if the World Cup lives on in the workplace?
Employers

What if the World Cup lives on in the workplace?

18 November 2022 Nele Mertens

The kick-off of the World Cup is also the kick-off of ‘football mania’. What if your employees can’t kick the football spirit during working hours?

Read more
Four-day working week? Eight out of ten SMEs not behind the idea
Employers

Four-day working week? Eight out of ten SMEs not behind the idea

05 October 2022 Annelies Bries

Our survey reveals that barely 10% of SMEs are considering introducing the four-day working week.

Read more
Retaining staff is greatest challenge for SMEs
Employers

Retaining staff is greatest challenge for SMEs

30 September 2022 Annelies Baelus

What are SMEs' greatest HR challenges today? Acerta, ETION and VKW Limburg asked 500 Belgian SMEs. What turns out to be the case? Not attracting but retaining employees is number one on the list of hr challenges for the second half of 2022. How do SMEs plan to keep their employees committed to their organisation? You can read about it in this blog.

Read more