Luxembourg - Wage indexation expected before the end of 2016 - September 30, 2016

There might come a wage indexation before the end of 2016, as consumer prices inch closer to the threshold for wages to be indexed. According to data analysts Statec, the indexation segment, as the inflation-pegged wage rise is known, could be applied to earnings and pensions as soon as the end of 2016. The consumer price index rose by 1.16% from July to August 2016, whilst the inflation rate, which had stabilised at 0% in July, increased 0.2% in August. This brings the six-month average increase to 2.2% since the last time wages were indexed, close to the 2.5% threshold needed for a wage adjustment.

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