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Central index exceeded in August : what does this mean for the guaranteed average minimum monthly income?
The August index exceeded the guaranteed average minimum monthly income pivot (GMMMI). From 1 September 2021, the amounts will increase by 2 %.
The GMMMI is a specific lower limit in terms of your employees' wages. Good to know is that the GMMI is not the same as a monthly wage. The composition of the GMMI also takes into account the remuneration elements that the employee receives in the course of the year.
For example, elements such as an end-of-year bonus or variable pay are also included when determining the GMMI.
As a result of the 2% indexation, the amounts of the GMMMI change from 1 September 2021 (the previous adjustment was from March 2020).
| Age and seniority conditions | Amounts |
|---|---|
| 18 years and older | EUR 1658.23 |
| 19 years and 6 months service | EUR 1702.24 |
| 20 years and 12 months service | EUR 1721.79 |
The GMMMI does not only increase in case of indexation. A progressive increase is also provided for in the social agreement concluded between the social partners on 8 June 2021.
Thus the different amounts (see above) will be modulated to 1 amount.
In addition, a phased timing is foreseen to increase the current amounts.
| Time of increase | Amounts |
|---|---|
| 1 April 2022 | + EUR 76.28 |
| 1 April 2024 | + EUR 35 |
| 1 April 2026 | + EUR 35 |
Coupled with the planned increases in GMMMI, there will also be a further reduction in employer contributions on very low wages to offset the cost.
Source:
National Labour Council (Nar): CAO 43/15
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