- within International Law and Insurance topic(s)
According to the Luxembourg’s Labour Code, wage indexation is a matter of public order provision. This means that it applies to all employees, regardless of their salary level. Employers are legally obliged to comply with this wage increase.
Today, Friday, 29 May 2026, STATEC (Luxembourg’s National Institute of Statistics and Economic Studies) confirmed that based on its provisional results, the annual inflation rate of the national consumer price index stands at 2.3% for the month of May 2026. As a result, it triggers a new indexation.
Consequently, the new applicable value of the wage index scale is set at 992.24 points (formerly 968.04 points) and will come into effect on 1 June 2026.
Effective from that date, a 2.5% increase will be required for all salaries, wages, and pensions.
Failure to comply with this obligation may result in a fine, for employers, ranging from EUR 251 to EUR 25,000. In the event of a repeat offence within two years, the maximum fine may be doubled.
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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