Indexation of procedural indemnity (Article 8, 2024)
Detailed explanation of the procedural indemnity (PI) in Belgium: Article 1022 Judicial Code, Royal Decree, calculation methods, indexation, and current amounts.
Indexation of procedural indemnity (Article 8, 2024)
On June 6, 2024, an amendment to Article 8 came into force (Royal Decree of May 16, 2024) that changed the calculation method for indexing the procedural compensation. The basic, minimum, and maximum amounts remain linked to the consumer price index, but the calculation method has been refined to better reflect actual changes in purchasing power.
The Previous Article 8 (before June 6, 2024)
"The basic, minimum, and maximum amounts are linked to the consumer price index corresponding to 105.78 points (base 2004); each time the index rises or falls by 10 points, the amounts referred to in Articles 2 to 4 of this decree are increased or decreased by 10 percent."
Under this previous regulation, each time the index rose or fell by 10 points, a coefficient that increased or decreased by 0.1 was applied (from 1.0 to 1.1 to 1.2, and so on). This system increasingly deviated from the actual evolution of purchasing power.
The Amended Article 8 (from June 6, 2024)
"The basic, minimum, and maximum amounts referred to in Articles 2 to 4 are linked to the consumer price index. The initial index is that of March 2007 (base 2004). The indexed amounts remain unchanged until and including the month in which a new index of at least 10 points up or down since the last indexation is reached.
On the first day of the month following the month in which a new index as referred to in the first paragraph, third sentence, is reached, the amounts are indexed according to the following formula: the new indexed amount is equal to the amount mentioned in Articles 2 to 4, multiplied by the new index and divided by the initial index. The result is rounded to two decimal places."
The amended article introduces a fundamentally different calculation: instead of step-by-step coefficients, there is now a direct ratio calculated between the current index and the initial index from 2007. This method reflects the actual price evolution since 2007 much more accurately.
Transitional Provision (Article 2 of the Royal Decree of May 16, 2024)
"For the application of Article 8 of the Royal Decree of October 26, 2007 establishing the tariff for the procedural indemnity referred to in Article 1022 of the Judicial Code and establishing the date of entry into force of Articles 1 to 13 of the Law of April 21, 2007 relating to the recoverability of fees and costs associated with the assistance of the lawyer, as amended by Article 1 of this decree, the first indexation after the entry into force of this decree takes place on the first day of the month following the month in which an index of 145.78 or 165.78 is reached."
This transitional provision is crucial because it explicitly determines when the first indexation according to the new method must take place. Instead of waiting until the index rises by 10 points since the last indexation under the old system, this provision establishes specific threshold values: 145.78 or 165.78.
Important transition point: Since the index for February 2025 (166.05) exceeded the threshold value of 165.78, the new indexed amounts take effect from March 1, 2025. This is the first application of the new calculation formula. The next indexation will take place when the index reaches 175.78 or higher.
Step 1: Determining the Indexation Threshold
The application closely follows the evolution of the consumer price index. A crucial nuance in the amended article is that a new indexation is triggered as soon as the index reaches a new threshold value - which is determined at fixed intervals of 10 points from the initial index (105.78). This applies to both increases and decreases in the index.
- The first indexation according to the new method took place in March 2025, based on the February 2025 index (166.05), which exceeded the threshold of 165.78.
- The next indexation will take place as soon as the index reaches 175.78 or higher (an increase), or when it falls below 155.78 (a decrease). In both cases, this represents a deviation of 10 points from the current fixed threshold value of 165.78.
- These threshold values are fixed values, determined by successive steps of 10 points from the initial index of 105.78.
- The new indexed amounts take effect on the first day of the month following the threshold crossing. In case of a decrease in the index, the procedural compensation would also decrease proportionally.
Step 2: Calculating the Indexed Amounts
The amended Article 8 introduces a new formula for calculating indexed amounts:
Explained step by step:
- We start with the original amount as mentioned in Articles 2 to 4 of the RD (i.e., the non-indexed amounts).
- We calculate the ratio between the current index and the initial index from March 2007 (105.78). For this calculation, we use the actual index value that exceeded the threshold (e.g., 166.05), not the threshold value itself (e.g., 165.78).
- We multiply the original amount by this ratio.
- We round to two decimal places (cents).
Difference Between Both Methods
The previous calculation method: With each 10-point increase in the index, a coefficient that increased by 0.1 was applied. This created a step-by-step increase that did not accurately follow the actual index evolution.
The new calculation method: There is a direct ratio between the current index and the initial index. This ensures a much more accurate reflection of the actual price evolution since 2007.
The difference between both methods becomes increasingly larger as the index continues to rise. The application meticulously follows the legal transition from the previous to the new calculation method, exactly as prescribed in the amended Article 8.
Step 3: Progress Towards the Next Indexation
To give users insight into when the next indexation can be expected, the application calculates how far we have progressed towards the next fixed threshold value. This is expressed as a percentage of the required increase:
- At 0%, we are at the time of the last indexation (166.05).
- At 50%, the index is halfway between 166.05 and the next threshold of 175.78.
- At 90%, we are approaching the threshold for new indexation of 175.78.
- At 100% or more, the threshold of 175.78 is reached and the new calculation is applied.
This progress indicator helps users anticipate future changes in the procedural compensation.
Transition Situation: The Implementation in the Application
The application carefully handles the transition between both calculation methods, fully in accordance with the amended Article 8 and the transitional provision in Article 2:
- Specific threshold values for first indexation: Instead of the usual 10-point rule, Article 2 stipulates that the first indexation after June 6, 2024 must take place when the index reaches 145.78 or 165.78.
- First indexation according to new method: Since the February 2025 index (166.05) exceeded the threshold value of 165.78, the new amounts take effect from March 1, 2025, calculated according to the new formula.
- Application of fixed thresholds after first indexation: After this first indexation, we follow the fixed threshold values: the next indexation will take place when the index reaches 175.78 or higher, corresponding to an increase of 10 points from the base level of 165.78.
The application accurately tracks when indexations have occurred following the fixed indexation thresholds. Each indexation threshold is carefully detected and the appropriate calculation method is applied, taking into account both the general rules and the specific transitional provisions.
Why This Approach?
This implementation meticulously follows the letter and spirit of the amended Article 8 and the transitional provision in Article 2. The application automatically detects when the fixed threshold values for indexation are reached and then applies the appropriate calculation method.
The new calculation method avoids the deviations of the previous method, where successive increases with coefficients led to an increasingly larger deviation from the actual price evolution. The direct link with the initial index ensures a much more accurate reflection of the purchasing power change since 2007.
The application automatically performs these complex calculations, allowing you to focus on the legal aspects of your case, with the assurance that the applied amounts are correct and up-to-date according to the current legislation, including the special transitional provisions.
Found an error or have a suggestion?
This information is maintained with care, but legislation changes. Have you noticed an inaccuracy or have a suggestion to improve this page? Let me know via pieterjan@scheir.eu.