As mentioned in the previous newsletters of November 2016 and January 2017, a legislative proposal was presented to the Belgian Parliament to modify the Law of 26 July 1996 as to the remuneration margin, which is currently calculated according to specific criteria.

This proposal aims to reform the system and would lead to a more compulsory and effective maximum margin, namely by introducing a new calculation method for the remuneration margin and by reducing or preventing any new unjustified increase in remuneration costs.

Unfortunately, the legislative proposal does not provide sufficient clarification to address employers’ questions and uncertainties.

The preliminary draft law was adopted by the Chamber of Representatives at its plenary session on 9 March 2017, and needs further ratification by the King before being published.