Luxembourg salary indexation June 1, 2026: +2.5% on all wages
Confirmed by STATEC: a new salary indexation bracket triggered on June 1, 2026. All salaries, pensions and social allowances paid in Luxembourg are automatically raised by 2.5%, with no action required from employees or employers.
What changes concretely
- All gross salaries in both private and public sectors increase by 2.5% automatically.
- The index moves from 968.04 to 992.24 points (968.04 × 1.025).
- Takes effect on June 2026 payslips.
- No action required — employers apply the increase automatically.
Who is affected?
The indexation applies to all income tied to Luxembourg's sliding wage scale:
- Private-sector employees and civil servants
- Retirees and pension recipients
- Family allowances
- Unemployment benefits
- Parental leave and sick pay allowances
- Social inclusion income (REVIS)
New minimum wages on June 1, 2026
| Type | Before | From June 1, 2026 | Increase |
|---|---|---|---|
| Minimum social wage (unqualified) | €2,703.74 | €2,771.30 | +€67.56 |
| Minimum social wage (qualified) | €3,244.48 | €3,325.60 | +€81.12 |
Calculate the impact on your net pay
A 2.5% increase in gross does not translate to exactly +2.5% in net: social contributions and tax also progress. To estimate your new net precisely, use the raise simulator with 2.5%.
Next bracket after June 1
According to STATEC's central scenario, the next indexation bracket would trigger in Q2 2027, depending on inflation. In the high scenario (2.4% inflation in 2027), it would come in Q1 2027; in the low scenario (1.4%), later in 2027.
How does the sliding scale work?
Luxembourg's indexation mechanism relies on the National Consumer Price Index (IPCN) calculated monthly by STATEC. As soon as the six-month moving average of the IPCN varies by 2.5% from the last bracket, a new bracket triggers. For the full mechanism, see our indexation page.