Today, let’s discuss the various ways to increase your salary in Belgium and share some practical workplace advice. I hope this information will assist you in making informed decisions throughout your career.
1. Automatic Salary Indexation by the Government
Belgium stands out as one of the few countries globally that unconditionally provides annual salary increases through automatic indexation. But what does this mean?
Salary indexation is a mechanism where, to counter inflation, the government mandates that employers grant employees an unconditional raise each year (the percentage correlates with the previous year’s inflation rate).
Over the past decade (from 2014 to 2024), cumulative salary indexation has resulted in a 26% increase in wages.
However, this practice remains controversial. While automatic raises benefit employees in the short term by safeguarding their standard of living against inflation, it significantly raises costs for employers. Moreover, employers often adjust their product prices accordingly, exacerbating overall inflation.
2. End Year Performance Reviews
Year-end performance reviews are pivotal moments – they provide an opportunity to negotiate salary increases.
In the European workplace, advocating for yourself is essential. A positive review can lead to promotions. Typically, a favorable year-end review translates to a 2%-5% salary increase (depending on whether your current salary is above or below the average). When combined with indexation, this becomes a substantial boost.
Here’s a tip for all professionals: During your performance review, back up your negotiation with evidence and data. Create a folder on your computer labeled “good things.” Before the week ends, summarize your achievements and save screenshots of positive feedback from colleagues. When the time comes for your annual summary, use these as negotiation leverage with your boss.
Remember, in Belgium, if you don’t speak up, your boss might assume you’re content with your current salary and won’t proactively raise it. So, don’t hesitate – communicate your expectations.
3. Promotions
Aspiring to climb the corporate ladder? High dedication, efficiency, and good performance during year-end reviews pave the way. However, promotions aren’t solely about effort; timing and luck play a role too.
In Belgium, promotions within the same company generally yield a 5%-15% salary increase (including benefits). Of course, this depends on your current salary. If you’re already well-paid, the room for additional raises may be smaller.
4. Job Switching
Switching jobs often leads to faster salary growth than staying with the same company for years. Your negotiation skills matter here.
My recommendation: When considering a job change, weigh the uncertainties of the new role. Always aim for an offer at least 10% higher than your current salary. Job switches offer significant salary leaps.
I once received an offer that was 30% higher than my previous salary. While job changes come with uncertainties, they also bring new skills and networks – hidden gains.
5. Self Employment
All the strategies mentioned earlier assume permanent employment.
But have you ever read reports on Belgium’s average salaries or the top 10% earners? Feeling content with your income because you’re in the top x%?
Reality check: The truly wealthy don’t appear in those statistics. So, let’s step up our game. Want substantial salary growth? Become your own boss!
The threshold for self-employment consulting in Belgium is low. Working for a large client, you can earn between €500 and €1000 per day. However, most of this income goes to the company. To minimize personal income tax, company owners pay themselves very low salaries, thus skewing the average wage downward.
Conclusion and suggestion
So, the above is some ideas for you to get some salary leaps, in case it is what you are looking for.
However, career development is not only about salary, there is so much more, such as learning about cutting-edge technologies, company rotations, networking, and so on. I would exchange a high salary for a more fun job, what about you?
Leave in the comment about what your last salary increase was about. (1-5)
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