As from 1st April 2022, the index applicable to employees' wages will be increased from 855.62 to 877.01, entailing a 2.5% raise of gross salary paid to individuals with employment contracts subject to Luxembourg law.

Wage indexation is an automatic mechanism to adjust salaries in pace with evolving living costs, as determined by the statistics and economic studies bureau (STATEC). Salaries are automatically raised when the cost of living increases by at least 2.5%. The aim of this measure is to compensate loss of purchase power due to inflation by increasing salaries accordingly.

The final detailed results of the national consumer price index for March 2022 will be published on 8 April 2022.

From 1st April 2022, the minimum monthly wage for unskilled workers, which was EUR 2,256.95 gross, will be EUR 2,313.38 gross, representing a gross monthly minimum increase of EUR 56.43.

The gross minimum monthly wage for skilled workers, which was EUR 2,708.35 will also be increased in the same proportion to EUR 2,776.05 gross as of 1st April 2022, representing a gross monthly minimum increase of EUR 67.70.

The amounts are indicative and subject to confirmation by the authorities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.