ARTICLE
2 May 2025

Index Adjusted On 1 May 2025

AM
Arendt & Medernach

Contributor

About Arendt

Arendt combines the entire value chain of services dedicated to Asset Managers, Banks, Insurers, Public Institutions and Private Clients operating in Luxembourg.

-Legal & Tax
-Regulatory & Consulting
-Investor Services

Legal & Tax

We assist clients in structuring and running their business from a legal and tax standpoint across Luxembourg. Our teams directly serve international clients or work in close collaboration with foreign partner law firms.

Together with our regulatory consultants and investor services experts, we bridge the gap between legal/tax advice and its implementation. We deliver best-in-class services along our clients’ business life cycles.

The 450 legal experts of Arendt & Medernach have a wealth of experience in a wide variety of specialisations. Together, they are able to advise on a complete range of 15 complementary practice areas

As of 1 May 2025, the index applicable to salaries increases from 944.43 to 968.04. This index increase means a mandatory 2.5% increase in gross salaries paid under employment contracts that are subject to Luxembourg law.
Luxembourg Employment and HR

As of 1 May 2025, the index applicable to employees will be increased from 944.43 to 968.04.

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

Salary indexation is an automatic measure that is used to adjust salaries in line with fluctuations in the cost of living determined by STATEC.1 Therefore, salaries will automatically increase as the consumer price index has risen by 2.5% over the previous six months. The objective of this measure is to use a salary increase to compensate employees for their loss of purchasing power due to inflation.

On 1 May 2025, the gross minimum salary for workers will therefore increase by 2.5% as follows:

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Footnote

1. National Institute of Statistics and Economic Studies.

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.

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