Luxembourg's indexation system links wages, pensions and social parameters to the cost of living. This explainer shows how the threshold, six-month average and cote d'application work.
Luxembourg's automatic wage indexation raises salaries and pensions from 1 June 2026 after inflation pushed the sliding scale to its next threshold.
Luxembourg recorded 5.2% harmonised inflation in April 2026 as motor-fuel prices jumped 33.8% year on year. The number is significant, but it is not the resident-focused index that triggers wage indexation.
STATEC's latest published scenarios forecast Luxembourg's next wage-indexation tranche for June 2026. It is not effective until official index data confirm that the threshold has been reached.
Luxembourg annual inflation rose to 3.1% in April 2026, pushed by fuel and heating oil. STATEC said 2.46 percentage points had accumulated toward the next 2.5% wage indexation tranche.
When the consumer price index moves 2.5%, every salary in the Grand Duchy adjusts by 2.5% by law. Statec's projections put the next trigger in the second quarter — the second tranche of the current cycle.
Luxembourg's official 2026 social minimum wage is currently EUR 2,703.74 gross monthly for an unqualified adult and EUR 3,244.48 for a qualified adult, at index 968.04. A further tranche is forecast for June 2026 but is not yet confirmed as effective.