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Updated on 31/08/2023

New Wage Indexation from 1st of September 2023

New wage indexation from 1st of September 2023 | SALARY.LU
The upcoming wage indexation in Luxembourg, confirmed by Statec (National Institute for Statistics and Economic Studies), will take effect on September 1, 2023. This indexation will result in a 2.5% increase in wages and pensions for the following month.

Statec's calculations have brought clarity to the uncertainty surrounding the timing of this indexation. It's important for companies to prepare for this change, as it aligns compensation with the changing cost of living and inflation rates.

Looking ahead, projections indicate that another wage indexation could occur in the third quarter of 2024. Statec's consistent forecasts suggest an average inflation rate of 3.9% this year, followed by a decline to 2.5% in 2024.

In order to offset the impact of indexation on businesses, joint measures are being taken. A law implemented in August stipulates that employer contributions to the mutual fund will decrease in proportion to the amount of compensation. The government will then cover the remaining difference, alleviating some of the financial burden on companies.

As these changes approach, staying informed and working with trusted partners like Salary.lu can help your company effectively navigate these adjustments. Prepare for the wage indexation on September 1 and keep your business on the path to financial stability.

Table with examples of the additional net amount before and after indexation.



Net increase for a gross salary of 

  • 2.508€ before indexing (Non-Qualified SMW): +45€ per month / +545€ per year
  • 3.010€ before indexing (Qualified SMW): +42€ per month / +501€ per year
  • 4.000€ before indexing: +54€ per month / +642€ per year
  • 6.000€ before indexing: +73€ per month / +871€ per year
  • 8.000€ before indexing: +102€ per month / +1.227€ per year
  • 10.000€ before indexing: +125€ per month / +1.499€ per year
  • 20.000€ before indexing: +246€ per month / +2.947€ per year

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