Indexation

Indexation is the mechanism by which wages, benefits and pensions are automatically adjusted to the rise in the cost of living or inflation. The aim is to preserve citizens’ purchasing power as far as possible, so that they can still meet daily expenses and financial obligations despite rising prices. Indexation can support consumers’ ability to pay and help limit the risk of payment arrears.

In Belgium, indexation is generally applied when the pivot index is exceeded. In exceptional circumstances the government may decide on an index skip, temporarily skipping the automatic adjustment of wages and benefits.

The definitions in this section reflect the Belgian situation, unless otherwise stated. The texts summarise concepts in everyday language and should not be read as comprehensive or definitive. Suggestions or corrections may always be sent to glossary@tcm.be.

Updated: 10/08/2026