• Sector Agreement in the Joint Committee for Employees – JC No. 200

Sector Agreement in the Joint Committee for Employees – JC No. 200

23 July 2019

In the month of June, a sector agreement has been reached within the joint committee 200, providing among others for an increase in the purchasing power by 1.1% and a mandatory bicycle allowance. This agreement is part of the Interprofessional Agreement (IPA) signed by the social partners in February for the period 2019-2020. Here is an overview of the changes that are important for your payroll.

Purchasing power

As of 1st of September 2019 both the sector-level minimum wages and the actual gross monthly salaries of the employees under JC 200 will be increased by 1.1%.

This obligation does not apply if the employer grants an alternative and equivalent benefit. This alternative equivalent benefit can be granted in the form of meal vouchers, premiums, eco vouchers, … Even a one-off premium granted in the period 2019-2020 can be offset against the 1.1% gross salary increase on condition that a recurring benefit is granted as of 1st of January 2021.

Annual salary increases which automatically result from the application of wage scales at company or sector level and which are based on seniority or professional experience are not taken into account. Other salary increases granted within the company can possibly be considered.

The salary increase or the granted benefit will be offset for each employee at the total cost of salary, meaning gross + employer’s social security contributions.

The 1.1% salary increase does not apply to employees if their company employs both blue-collar workers and white-collar employees, in which case the blue-collar workers are affiliated to a sector-level supplementary pension scheme and the white-collar employees have no or a less beneficial supplementary pension scheme.

For these employees, the increase will be granted in the form of a temporary annual premium to be paid into the supplementary pension scheme for white-collar employees. This is part of the obligation to harmonise the sector-level supplementary pension schemes of blue-collar workers and white-collar employees.

If you want to convert the 1.1% salary increase into an alternative equivalent benefit and if there is a union delegation in the company, an agreement must be concluded on company-level before the end of September. In the absence of a union delegation, it is sufficient for the employer to inform his employees individually in writing about the application of the equivalent benefit.

Please let us know if you think you have already granted an alternative equivalent benefit or if you intend to do so. We will take care of the correct conversion of the salary increase to the chosen alternative.



As of 1 July 2020, there is an obligation to grant a bicycle allowance to all employees who are using their bicycle for (part of) their commuting.

These employees will be entitled to an indemnity of 10 cents per kilometre travelled. This indemnity is limited to a round trip distance of 40 km, meaning the maximum mandatory indemnity is 4 EUR per day. You may of course voluntarily choose to grant the maximum bicycle allowance of 24 cents per kilometre without limiting the number of kilometres.

Moreover, the social partners recommend companies to seriously consider the introduction of a mobility budget in the framework of their mobility policy. This allows your company to limit its CO2 emissions in a budget-neutral way. Our advisors can of course guide you through the implementation of this mobility budget, both from a legal and a technological perspective.



Should you have any questions regarding this topic or require assistance from our experts, please do not hesitate to contact the BDO Social Legal team: