We mentioned it in our last article, it is now official: the first index of 2023 will be applied from February on all incomes, pensions but also salaries of civil servants in Luxembourg!
A 2.5% increase expected in February 2023
The inflation rate was estimated at 4.8% for January according to the Statec, therefore a new index has been triggered and announced last Tuesday 31 January. As a reminder, in addition to wages, salaries, pensions and family allowances will also benefit from this increase.
The unskilled minimum wage goes from 2,387.40 euros to 2,447.09 euros gross. The qualified wage increases from 2,864.88 to 2,936.50 euros gross per month.
The next index of the year is expected in April 2023, which is actually the one of July 2022 that had been postponed and replaced by the energy tax credit.
What is the index in Luxembourg?
This wage increase appeared for the first time in the country in 1921, at that time it concerned only a few industries, before being generalized to all trades by the Luxembourg Chamber of Employees (CSL) in 1975. All employers are obliged to apply this increase, under penalty of punishment.
This automatic measure is applied as soon as the National Institute for Statistics and Economic Studies (Statec) observes an increase in inflation of 2.5%. Following this, all wages, pensions and salaries also increase by 2.5%.
Did you know that? Luxembourg and Belgium are the only two countries in Europe that offer wage indexation.
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