Index increase

From 1 August 2018, the index applicable to employees' wages will climb from 794.54 to 814.40. This index increase will result in a 2.5% increase in the gross salary paid to employees with employment contracts subject to Luxembourg law.

Wage indexation is an automatic mechanism for the adjustment of salaries to keep pace with evolving living costs, as determined by the statistics and economic studies bureau, STATEC. Thus, salaries are automatically increased when the cost of living increases by at least 2.5%. The aim of this measure is to compensate for a loss of purchasing power due to inflation by increasing the salaries of employees accordingly.

Even though making this adjustment on the wage index on 1 August 2018 might seem to be surprising given that the last adjustment only dates back to 1 January 2017, STATEC’s growth expectations also seem to predict another adjustment before the end of 2019.