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Wage indexation in Luxembourg

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.

How a tranche is triggered

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.

What the employer has to do

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.

The index steps since 2018

FromIndex applied to wagesChange
1 June 2026992.24+2.5 %
1 May 2025968.04+2.5 %
1 September 2023944.43+2.5 %
1 April 2023921.40+2.5 %
1 February 2023898.93+2.5 %
1 April 2022877.01+2.5 %
1 October 2021855.62+2.5 %
1 January 2020834.76+2.5 %
1 August 2018814.40+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.

Sources

Figures checked on 10 November 2026 against the official tables listed above. This guide is general information, not legal or tax advice.

Need this applied to your payroll?

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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