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 2026 economic outlook is a practical guide to how Luxembourg households and companies should read inflation, wage indexation and labour-market pressure.
STATEC has presented a scenario on how a blockade of the Strait of Hormuz could affect Luxembourg, putting energy prices, inflation and economic planning back into focus.
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.
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