Luxembourg wages set to increase by 2.5% by end of year
The salaries of workers in Luxembourg could rise by 2.5% by the end of the year to match inflation, the national statistics agency Statec said on Wednesday.
The readjustment of pay, initially expected to take place only next year, is now set to take place earlier, according to Statec’s latest monthly report.
The automatic wage indexation happens every time prices for consumer goods and services jump by more than a certain threshold, normally 2.5%. Introduced in 2006, the measure last kicked in at the start of 2020.
Also on Wednesday, the statistics agency raised its forecast for annual inflation to 2%, with prices rebounding as businesses reopened after the country started easing lockdown measures, up from 1.7% previously.
The inflation rate is then expected to drop back to 1.6% next year.
Luxembourg’s minimum wage increased by 2.8% at the start of the year, despite strong criticism from business groups. The basic minimum gross monthly salary for unskilled workers currently stands at €2,201.93, rising to €2,642.32 for employees with qualifications.