An exciting announcement for employees in the Grand Duchy: on September 1, 2023, both wages and pensions will increase by 2.5%. The indexation date, confirmed by Statec had been uncertain until now, as reported in a previous article.
The third wage indexation of the year
This third wage indexation of the year, which will come into effect on September 1, will bring joy to workers and pensioners in Luxembourg. This increase follows two other indexations implemented during the year. In fact, the previous ones were implemented last February and April, with the latter corresponding to a carryover from 2022.
This index raises the qualified Mmnimum wage to €3,085.11, compared with €2,570.93 for the unskilled minimum wage.
A legitimate expectation
A subsequent press release from the institute corroborated this announcement, citing an annual inflation rate of the consumer price index at 4.2% for August, according to preliminary results. This increase surpassed the critical threshold of 988.75 points, thus indicating the necessity for a new indexation. Statec also specified that the final and detailed results of the consumer price index for August will be made public on September 6.
And as many workers wondered whether the index would be applied in October or September, the decision has finally been made: the 2.5% increase in wages and pensions will be effective from Friday, September 1, 2023.
Discover all the latest news about the job market in Luxembourg on our blog.