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Temporary cap on pension indexation: how does this affect your expat pension?
The Belgian government recently decided to cap the indexation of statutory pensions temporarily. To this end, two measures have been introduced: cent indexation and the capped adjustment of higher pensions. We explain these measures and their impact on your expat pension.
Indexation: An Automatic Mechanism
Indexation in Belgium is an automatic mechanism that adjusts pensions in line with changes in the cost of living. This indexation also applies to wages and to other forms of social assistance. The health index, an indicator that reflects price trends for certain goods, serves as a measure of the cost of living. If this health index reaches a certain threshold (the pivot index), pensions are increased by 2 per cent.
Changes to indexation
The general principle of indexation was significantly amended in two respects in July 2025:
- Indexation takes place later.
The increase is no longer applied immediately, but only from the third month after the threshold index has been exceeded. - Indexation may be limited.
Certain pensions are not fully registered for the 2 per cent indexation due to the ‘cent’ indexation or the cap on the indexation of higher pensions.
Measures to limit indexation
Two measures temporarily limit the indexation of pensions:
One of these two measures will be applied during each indexation, at least until the end of 2029.
1. Cent indexation
Cent indexation limits the indexable pension amounts to 2,000 euros gross. It applies, exceptionally, on two occasions:
- during the second indexation after 31 December 2025 (expected in September 2026);
- during the first indexation after 31 December 2027.
Effects of cent indexation
The table below shows the effects depending on the total gross amount of your pension. Please note: ‘total amount’ means that, where applicable, you must add together your statutory pensions in Belgium and abroad.
| Total gross pension | Indexation |
|---|---|
| Less than 2,000.00 euros | Full indexation of 2% |
| From 2,000.00 to 5,351.91 euros | Fixed increase of 40.00 euros |
| From 5,351.92 to 5,355.01 euros | Increase capped at a maximum of 5,391.91 euros |
| From 5,355.02 to 8,254.71 euros | Fixed increase of 36.89 euros |
| From 8,254.72 to 8,291.59 euros | Increase capped at a maximum of 8,291.60 euros |
| From 8,291.60 euros | No indexation |
Case studies for a better understanding
Case 1: You receive a pension from the OSS amounting to €1,800 gross.You will receive a 2% pension increase, which amounts to 36 euros. Your new OSS pension amounts to €1,836 gross.
Case 2: You receive a total pension of €3,000 gross (two pensions of €1,500 gross each from the OSS and the Federal Pension Service).The 2% indexation would increase your pension by 60 euros gross. However, the increase is capped at 40 euros due to cent-based indexation. Your new pension amounts to 3,040 euros gross.
Case 3: You receive a total pension of 7,000 euros gross (an OSS pension of 2,000 euros gross + a statutory foreign pension of 5,000 euros gross).A 2% indexation would increase your pension by 140 euros gross. However, the increase is capped at 36.89 euros due to cent-based indexation. Your new pension amounts to 7,036.89 euros gross.
2. Temporary cap on the indexation of higher pensions
The temporary cap on adjustments to higher pensions is a measure that applies to adjustments scheduled between 1 July 2025 and 31 December 2029. It applies only if the cent-based indexation does not apply. Only one of the two measures will be applied for adjustments during this period,.
Impact of the temporary cap on the indexation of higher pensions
The table below shows the effects of this indexation cap, depending on the total gross amount of your pension. Please note: ‘Total amount’ means that, where applicable, you must add together your statutory pensions in Belgium and abroad.
| Total gross pension | Indexering |
|---|---|
| Less than 5,286.18 euros | Full adjustment of 2% |
| From 5,286.18 to 5,355.01 euros | Increase capped at a maximum of €5,391.91 |
| From €5,355.02 to €8,254.71 | Fixed increase of 36.89 euros |
| From 8,254.72 to 8,291.59 euros | Increase capped at a maximum of 8,291.60 euros |
| From 8,291.60 euros | No indexation |
This measure therefore has no impact on most pension payments. Only higher pensions will be indexed to a lesser extent.
Case studies for a better understanding
Case 1: You receive an OSS pension of €1,800 gross.You will receive a 2% increase in your pension, amounting to 36 euros as part of the adjustment. Your new OSS pension amounts to 1,836 euros gross.
Case 2: You receive a total pension of 5,550 euros gross (OSS pension of 2,000 euros gross + pension from the Federal Pension Service of 3,550 euros gross).The 2% indexation would increase your pension by 111 euros gross. However, the increase is limited to 36.89 euros based on the temporary indexation cap for higher pensions. Your new pension amounts to 5,586.89 euros gross.
Case 3: You receive a total pension of 8,255 euros gross (OSS pension of 5,000 euros gross + statutory overseas pension of 3,255 euros gross).The 2% adjustment would increase your pension by €165.10 gross. However, the increase is limited to €36.60 due to the temporary cap on adjustments to higher pensions. Your new pension amounts to €8,291.60 gross.
These two measures (cent indexation and the temporary cap on the indexation of higher pensions) relate exclusively to the OSS pension scheme, not to its other benefits.
Key take-aways
- Indexation will apply from the third month after the reference index has been exceeded from July 2025.
- Two temporary measures will restrict the adjustment of certain pensions between 1 July 2025 and 31 December 2029:
- ‘cent indexation’, which takes place only on two occasions: once in 2026 and once in 2028;
- the temporary cap on the indexation of higher pension payments, cap that applies to all other indexations during this period.
- The total gross amount of your statutory pensions (in Belgium and abroad) counts when the two measures are applied.
- The limited indexation applies only to the OSS pension scheme, not to its other benefits.
Further information
Do you have any questions about how these measures will affect your personal situation? Our Frontline team will be happy to assist you by telephone on +32 2 509 90 99 or by email.