On Wednesday 15 June 2022, the Bill of law 8000A, transposing
certain measures provided by the tripartite agreement signed on 31
March 2022 by and between the Government and the social partners
UEL, the LCGB and the CGFP, (“Tripartite
Agreement”) has been voted and should come into
force soon after its publication
(“Law”).
Amongst other things, the Law provides that the first indexation
on wages after 1 April 2022 will be postponed to 1 April 2023.
According to Luxembourg law, when the cost of living index
increases by 2.5% all wages are increased proportionally.
Considering the significant recent inflation as well as the last
two indexations which occurred on 1 October 2021 and 1 April 2022,
it has been decided to postpone the next indexation, which was
expected in mid-2022, in order to limit the excessive financial
pressure on businesses in Luxembourg.