According to the provisional result published by Luxembourg's national statistics agency Statec, the annual inflation rate of the National Consumer Price Index (NCPI) for June 2022 reached 7.4% which resulted into the half-yearly average of the index connected to the 1.1.1948 base for June to exceed the threshold of 941.12 points.
However, under Article 3 of the law of 29 June 2022, the indexation of salaries, wages and pensions will take place on 1 April 2023.
Articles 4 to 6 of the law of 29 June 2022 create a sliding scale of family allowances (échelle mobile des allocations familiales - EMAF), which adjust the amounts of family allowances to the cost of living. In accordance with current legislation, the adjustment of family allowances takes place the month following its triggering. Therefore, the EMAF application rate of 898.93 points (former rate: 877.01 points) will come into effect on 1 July 2022, resulting in a 2.5% increase in family allowances.
In addition, the introduction of the equivalent tax credit (l'équivalent crédit impôt - ECI) for recipients of social inclusion income (revenu d'inclusion sociale - REVIS) and income for severely disabled persons (revenu pour personnes gravement handicapées - RPGH), also comes into effect from Friday 1 Junly 2022, in accordance with the law of 29 June 2022 transposing certain measures provided for by the tripartite agreement of 31 March 2022.
