Recent Legal Development In Fighting Inflation

From 1 September 2023, the index applicable to salaries increases from 921.40 to 944.43. This index increase results in a mandatory 2.5% increase in the gross salary paid under employment contracts that are subject to Luxembourg law. This salary indexation follows the recent vote on tax measures for households that was decided during the tri-party agreement of 3 March 2023.

From 1 September 2023, the index applicable to salaries increases from 921.40 to 944.43.

This index increase results in a mandatory 2.5% increase in the gross salary paid under employment contracts that are subject to Luxembourg law.

Salary indexation is an automatic measure to adjust salaries in line with the evolution of living costs as determined by STATEC¹. Therefore, there will be an automatic increase in salaries as the consumer price index has increased by 2.5% over the previous 6 months. The objective of this measure is to use a salary increase to compensate employees for their loss