As of 1 June 2026, the index applicable to salaries increases from 968.04 to 992.24. This index increase means a mandatory 2.5% increase in gross salaries paid under employment contracts that are subject to Luxembourg law.
Salary indexation is an automatic measure that is used to adjust salaries in line with fluctuations in the cost of living determined by STATEC (Institut National de la Statistique et des Études Économiques). Therefore, salaries will automatically increase as the consumer price index has risen by 2.5% over the previous six months. The objective of this measure is to use a salary increase to compensate employees for their loss of purchasing power due to inflation.
On 1 June 2026, the gross minimum salary for workers will therefore increase by 2.5%.
Author: Raphaëlle Carpentier — Arendt Employment Law, Pensions & Benefits team.
