How a 2.5% tranche is triggered, what employers have to do, and the index applied to wages since 2018 (992.24 since 1 June 2026).
In Luxembourg wages follow prices automatically. When the cost of living has risen by 2.5%, all salaries, pensions and the minimum wage go up by 2.5% at the same time: this is the indexation (échelle mobile des salaires). The rule works both ways: a 2.5% fall in prices would lower them in the same way. The index applied to wages has been 992.24 since 1 June 2026.
STATEC compares the six-month average of the consumer price index with the level at the previous tranche. When the increase reaches 2.5%, a tranche falls due and the index applied to wages moves up by 2.5%, normally from the first day of the following month. Exceptionally, a tranche can be postponed by law: under the tripartite agreement of 31 March 2022, the tranche due in summer 2022 was paid only in April 2023.
Nothing needs to be negotiated: every salary is raised by 2.5% from the month the new index applies, including salaries above the minimum. A salary of €3,500 becomes €3,587.50. The social security ceiling and the minimum wage move with it.
| From | Index applied to wages | Change |
|---|---|---|
| 1 June 2026 | 992.24 | +2.5 % |
| 1 May 2025 | 968.04 | +2.5 % |
| 1 September 2023 | 944.43 | +2.5 % |
| 1 April 2023 | 921.40 | +2.5 % |
| 1 February 2023 | 898.93 | +2.5 % |
| 1 April 2022 | 877.01 | +2.5 % |
| 1 October 2021 | 855.62 | +2.5 % |
| 1 January 2020 | 834.76 | +2.5 % |
| 1 August 2018 | 814.40 | +2.5 % |
Our payroll platform keeps the whole index history, so a contract signed in 2022 is converted with the index of the day it was signed. STATEC publishes forecasts of the next tranche in its regular economic notes.
Figures checked on 10 November 2026 against the official tables listed above. This guide is general information, not legal or tax advice.
Our payroll team and the LuxPay platform apply the rates and index in force to every payslip, with a QCS accountant checking each month.
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