European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LU-2022-14/2247 Updated – measures in Luxembourg

Wage indexation advanced to address rise in prices

Indexation des salaires

Country Luxembourg , applies nationwide
Time period Open ended, started on 31 March 2022
Context War in Ukraine
Type Tripartite agreements
Category N/A
– Increasing income in general
Author Patrick Thill (LISER) and Eurofound
Measure added 12 May 2022 (updated 19 June 2023)

Background information

Wages in Luxembourg are indexed to inflation. This indexation is triggered as soon as the cumulative inflation over a six-month period is equal to or higher than 2.5% of the cost of living index (consumer prices). Art. L. 010-1. (Loi du 11 avril 2010) & Titre II, Chap II, Art L-222-3 of the Labour Codel stipulate this.

Content of measure

The rise in food and energy prices (6.2% in March 2022) has led the government to bring forward the indexation of wages (+2.5%) to April 2022 instead of August 2022, according to the latest STATEC forecasts. This indexation was validated at a Tripartite meeting held on 31 March 2022.

Wages will therefore increase by 2.5% from 1 April. This means a qualified minimum social wage of €2,776.05 gross per month (instead of €2,708.35), and a minimum social wage of €2,313.37 (instead of €2,256.95) for unskilled workers.

In addition, to postpone a possible additional indexation bracket in 2022 by 12 months, in order to guarantee more predictability for companies. In this context, compensation for the loss of purchasing power should be provided for those suffering from a loss of purchasing power through a tax credit . For example, "for salaries and pensions between €936 and €44,000 per year, this credit will amount to €84 per month".


The following updates to this measure have been made after it came into effect.

29 June 2022

Following the indexation in 2022, two further indexations were triggered in 2023. The first corresponds to changes in the annual inflation rate of the national consumer price index (NICP). This rose to 4.8% in January and exceeded the threshold of 964.64 points, triggering a new indexation on 1 February 2023.

The second indexation corresponds to the law of 29 June 2022, which transposes certain measures provided for in the tripartite agreement of 31 March 2022. This caused the application of the index tranche triggered in June 2022 to be postponed until April 2023.

As a result, the new sliding salary scale was increased to 921.40 points (previous scale: 898.93 points), resulting in a 2.5% increase in wages, salaries and pensions.

The minimum social wage (SSM) is set at €2,508.24 for unskilled workers and €3,009.88 for skilled workers.

Use of measure

Wage indexation applies to all employees, regardless of their field of activity and status.


  • Pay increases

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown


Social partners are not involved in designing, implementing or monitoring. This measure automatically applies to all companies.

Views and reactions

The trade unions, excepted Confédération Syndicale Indépendante du Luxembourg (OGBL), have signed the Tripartite agreement with the proviso that further indexation be considered in the event of an exceptional rise in the price index. OGBL refused to sign the agreement considering that the orientations proposed by the government aimed at social dismantling.



Eurofound (2022), Wage indexation advanced to address rise in prices, measure LU-2022-14/2247 (measures in Luxembourg), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.