Compulsory salary increase as of 1 October

As of 1 October 2013, the index applicable to employees’ remuneration will increase from 756.27 to 775.17. This raise implies a mandatory salary increase of 2.5 per cent in gross salaries paid under Luxembourg employment contracts.

The salary index is a mechanism for the automatic adaptation of salaries linked to the cost-of-living index as determined by the National Institute for Statistics and Economic Studies (STATEC). Salaries are hence subject to an automatic increase by operation of law every time the cost-of-living index increases by more than 2.5 per cent.

The aim of this mechanism is to compensate employees’ losses in purchasing power due to inflation by granting a revenue increase…

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