Wage indexation in Luxembourg: a 2.5% increase from 1 June 2026

In its press release of 29 May 2026, STATEC announced the entry into force of a new index bracket with effect from 1 June 2026. This adjustment to the sliding wage scale will result in a 2.5% increase in wages, salaries and pensions in Luxembourg.

A new index level for the sliding wage scale

The new index level for the sliding wage scale will rise from 968.04 points to 992.24 points from 1 June 2026.

This change automatically triggers a 2.5% increase in the relevant remuneration in accordance with the Luxembourg indexation mechanism.

What are the effects of this indexation?

From 1 June 2026:

• wages will be increased by 2.5%;
• civil service salaries will be increased by 2.5%;
• pensions will also be increased by 2.5%.

Employers will need to take this adjustment into account when calculating remuneration paid from that date onwards.

What will the new minimum social wage be?

Subject to the final publication of the national consumer price index results scheduled for 3 June 2026, the minimum social wage amounts are expected to be as follows:

• Unskilled minimum social wage: €2,771.33 gross per month.
• Skilled minimum social wage: €3,325.59 gross per month.

Why is this increase taking place?

Luxembourg’s wage indexation system aims to protect the purchasing power of employees and pensioners in the face of rising living costs.

When certain thresholds linked to the consumer price index are reached, a new index band is triggered, automatically leading to an increase in the relevant wages.

New social parameters to be published shortly

The new social parameters resulting from this indexation are expected to be published shortly.

We are monitoring developments in this matter and will publish an update as soon as the official figures and final social parameters are available.