In Belgium
The pivot index is a mechanism unique to Belgium, linked to the sliding wage scale system. When the smoothed health index (4-month moving average) exceeds the pivot threshold, public sector wages and social benefits are automatically raised by 2%. A new pivot is then calculated (old pivot x 1.02).
This mechanism is often confused with rent indexation, but the two are completely separate:
- Pivot index: discrete threshold, one-off wage/benefit adjustment, based on smoothed health index
- Rent indexation: continuous formula, annual rent adjustment, based on non-smoothed health index
A tenant whose salary rises due to a pivot exceeding does not automatically face a rent indexation — the two mechanisms are independent.
Practical example
In 2022, the pivot index was exceeded 4 times due to record inflation. Wages rose by 4 x 2% = 8.24% (cumulative). During the same period, rent indexation followed its own rhythm, at each lease anniversary, without any link to pivot exceedances.