New Rules On Indexation? The "Index In Money" Explained

The "index in money": What is it?

The index in money would mean that in 2026 and 2028 the full indexation of wages will be capped once a gross salary of 4.000 EUR is reached. Wages above 4.000 EUR gross will no longer be fully indexed, but only for a maximum equal to the difference between the actual index figure (above 2%) and that 2% (index threshold amount).

Employers must still apply salary indexation for salaries above 4.000 EUR gross, but only for half of the normal additional amount. This half does not go to employees; instead, it is transferred to the government. The remaining half does not need to be paid out by employers and serves as a cost-saving measure on salary expenses for employers.