(Image: DhanushkaSG )
The new index-linked adjustment came into force on 1 June 2026, resulting in an automatic 2.5% increase in salaries, wages and pensions in Luxembourg.
The adjustment was triggered after the six-month average of the consumer price index exceeded the established threshold. As a result, the applicable index rose from 968.04 to 992.24 points.
The increase must be applied to salaries paid for the month of June and covers employees subject to Luxembourg labour law, as well as pensioners.
The indexation also led to an increase in the social minimum wage. An unskilled worker aged 18 or over must now receive a minimum gross monthly salary of €2,771.33. For skilled workers, the minimum gross monthly salary has risen to €3,325.59.
Salary indexation is an automatic mechanism used in Luxembourg to reflect changes in the cost of living and protect the population’s purchasing power.
Employees should therefore check their June payslip to make sure the 2.5% increase has been correctly applied. For employers, the adjustment is mandatory and must be reflected in payroll calculations from the beginning of the month.
