Luxembourg - Wage indexation expected in June 2016 - January 31, 2016

The next salary indexation could take place in June, according to the latest estimates from the Banque centrale du Luxembourg (BCL). In its 2015/3 bulletin, published on 22 January, BCL states that, based on current inflation projections, the next indexation increases should only be triggered in June 2016 and September 2017. Headline inflation, which rebounded from its minimum -0.6 percent in December 2014 to 0.8 percent in November 2015, should remain at levels close to one percent until August 2016 before picking up, notes BCL. The annual average rate of change of the consumer price index, which had fallen to 0.6 percent in 2014, went back down again to 0.5 percent in 2015 before recovering to 1.1 percent in 2016. BCL explains that with the decline in headline inflation, the payment of the next indexation, scheduled for Q1 2016, would be postponed to Q2 2016. Concerning real wages, BCL notes that the recovery of the economic outlook should contribute in strengthening the bargaining power of employees. Overall, nominal wages are expected to grow 1.3 percent in 2015 before increasing to 1.9 percent in 2016 and 3.0 percent in 2017.

English: http://www.wort.lu/en/business/bcl-projections-luxembourg-s-next …

The BCL bulletin (in French): http://www.bcl.lu/fr/publications/bulletins_bcl …   

For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Mariya Nikolova mnikolova@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. You may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.


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