The main principles underlying the new pay model
KBC's present pay arrangements consist of three components: fixed salary, variable pay (linked to the individual or the group) and non-statutory benefits. These categories will remain under the new arrangements. KBC is leaving the overall staff wage structure intact but will reassign the weighting of each of the individual components.
Under the new wage policy, it will be easier to align employees' fixedsalary component with their work input whilst still remunerating them in line with market standards according to the weight of their workload or responsibilities.
The individual variable portion of pay mainly consists of non-statutory, tax-advantageous benefits and pension schemes. Just as now, exceptional performance will also in future qualify for an extra bonus.
What does the new wage policy look like?
KBC wants a single pay system for both administrative and managerial staff.
KBC wants the market standard for fixed salary, with more room for individual differentiation
KBC is not making any change to existing scales and job descriptions or to current monthly salaries or the way they are indexed but will in future base its remuneration on 'salary brackets’. A salary bracket is a salary range that accords with market standards and reflect the degree of responsibility an employee has taken on. Pay increases will no longer be determined by seniority but instead by individual performance. Managers will be able to incorporate greater flexibility in order to react with flexibility to individual performance and growth in experience.
KBC's staff are presented with a balanced, competitive, comprehensive pay package
The non-statutory benefit package will expand. KBC greatly advocates team work and cooperation and is therefore putting up the funds needed to better bolster team work. KBC is also maintaining its very extensive offering as a caring employer.
KBC further expands cafeteria scheme
KBC is further aligning to social trends by converting a portion of fixed salary into benefits that deliver the greatest personal added value to staff.
KBC's supplementary pensions made more attractive
In response to the need to work longer and the rising requirement for flexible career paths, KBC is investing in an improved formula of the employer's supplementary pension scheme. The changes to the pension rules will only come into effect in 2019.
KBC abolishes time-honoured system of annual appraisals and opts instead for continual assessment dialogue process
In April 2018, KBC will abolish its old annual appraisal rounds. The intention is that continual progression dialogue between manager and employee will produce a more accurate evaluation record and give improved insight into functional growth and staff performance in a changing context.
'This CLA applies to all staff of KBC Bank & Insurance; it does not apply to CBC, which is a separate legal entity and conducts its own pay policy in consultation with its social partners.
For more information, please contact:
Viviane Huybrecht, General Manager, Corporate Communication/KBC Group Spokesperson
Tel. + 32 2 429 85 45 | E-mail: email@example.com
LBC-NVK: Dirk De Backere, + 32 475 66 86 04
ACLVB: Maarten Dedeyne, + 32 499 29 01 57
BBTK: Peter Wallez, + 32 478 25 19 03