Wages, Pensions to Increase by 2.5% from 1 February

Luxembourg's national statistics institute STATEC has confirmed that the next wage indexation will take place on Wednesday 1 February 2023.

According to STATEC's provisional results, the annual inflation rate of the national consumer price index amounts to 4.8% for the month of January 2023. With this result, the half-yearly average of the index connected to the base 1.1.1948 for the month in question exceeds the threshold of 964.64 points, thus triggering a new wage indexation.

The new application rating of the sliding salary scale of 898.93 points (formerly 877.01 points) will come into force on 1 February 2023, leading to a 2.5% increase in wages and pensions on that date.

In accordance with the legislation in force, family allowances will also increase by 2.5% from 1 February.

Another wage indexation, initially scheduled for July 2022 but postponed as part of tripartite negotiations, is set for April 2023.