Luxembourg - Wage indexation postponed - June 30, 2022

A new law, transposing certain measures provided by the tripartite agreement signed on 31 March 2022 by the government and the social partners UEL, the LCGB and the CGFP, provides that the first indexation on wages after 1 April 2022 will be postponed to 1 April 2023. According to law, when the cost of living index increases by 2.5% all wages are increased proportionally. Considering the significant recent inflation as well as the last two indexations which occurred on 1 October 2021 and 1 April 2022, it has been decided to postpone the next indexation, which was expected in mid-2022, in order to limit the excessive financial pressure on businesses in Luxembourg. In order to compensate for the postponement of the wage indexation, the government has opted for several compensatory measures, e.g. energy tax credit, financial aid for students, tax credit for the beneficiaries of social inclusion income and for the recipients of the severely disabled benefit.

Read on: English. Read on: in English (2).

For more information, please contact Paul de Beer or Oana Ciuca, De Burcht (Scientific Bureau for the Dutch Trade Union Movement) p.t.debeer@uva.nl or the Head of communications at the ETUI, Mehmet Koksal mkoksal@etui.org. For previous full issues of the Collective bargaining newsletter please visit https://www.etui.org/Newsletters/Collective-bargaining-newsletter or consult the archive with all articles in our database at www.cbnarchive.eu.
You may find further information on the ETUI at www.etui.org.

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