The Belgian wage setting system can be characterised by two main points. First of all, it
is highly institutionalised, combining regulation with strict procedures for decision-making
and encompassing the wage setting of nearly all employees. Secondly, it is free in the
sense that voluntary agreements between employers and employees can be made at any
level as long as lower level agreements respect employees’ rights of higher level
agreements. For example, any wage agreement at the company level cannot set wages
below a sector or national agreement. The legal structure for this bargaining system has
been in place since 1968.