With effect from 1 April 2023, the index applicable to employee wages increases from 898.93 to 921.40.
This is the application of the index tranche triggered in June 2022 and deferred to April 2023 in accordance with article 3 of the law of 29 June 2022[1] implementing certain measures set out in the Tripartite Agreement of 31 March 2022.
This increase in the index results in a mandatory 2.5% increase in the gross salary paid to individuals with employment contracts subject to Luxembourg law.
Wage indexation is an automatic mechanism to adjust salaries in line with evolving living costs, as determined by the STATEC[2]. Salaries are automatically increased if the consumer price index increases by at least 2.5% in the previous 6 months. The aim of this measure is to compensate employees for loss of purchasing power due to inflation by increasing salaries accordingly.
From 1 April 2023, the gross minimum wage for workers is therefore increased by 2.5% as follows:
