From 1 February 2023, the index applicable to employee wages increases from 877.01 to 898.93. This leads to a 2.5% increase in the gross salary paid to employees with Luxembourg law employment contracts.
With effect from 1 February 2023, the index applicable to employee wages increases from 877.01 to 898.93, resulting in a 2.5% increase in gross salary paid to individuals with employment contracts subject to Luxembourg law.
Wage indexation is an automatic mechanism to adjust salaries in line with evolving living costs, as determined by STATEC[1]. Salaries are automatically raised when the cost of living increases by at least 2.5%. The aim of this measure is to compensate for loss of purchasing power due to inflation by increasing salaries accordingly.
The final detailed results of the national consumer price index for January 2023 will be published on 10 February 2023.
From 1 February 2023, the gross minimum social wage is therefore increased by 2.5% as follows[2]:
[1] National Institute of Statistics and Economic Studies of the Grand Duchy of Luxembourg (Institut national de la statistique et des études Économiques du Grand-Duché de Luxembourg).
[2] The amounts are indicative and subject to confirmation by the authorities.
