What is the sliding wage scale?
Luxembourg is one of the few countries in the world that applies an automatic salary indexation system, known as the "sliding scale" (échelle mobile). This mechanism directly links the evolution of all salaries, wages and pensions to the cost of living, measured by the national consumer price index (IPCN).
Principle: When the six-month average of the IPCN varies by 2.5%, an index tranche is triggered and all salaries are automatically increased by 2.5%.
Current index: 992.24 points
Since 1 June 2026, the index in force is 992.24 points, up 2.5% from the previous index of 968.04 points (in force since 1 May 2025).
In practice, an employee with a gross salary of EUR 5,000 on 31 May 2026 saw their salary rise to EUR 5,125 on 1 June 2026, an automatic increase of EUR 125 gross per month.
How is indexation triggered?
STATEC calculates the IPCN monthly based on a basket of goods and services representative of household consumption. The six-month average is compared to the last trigger threshold. Once this average exceeds the 2.5% threshold, the index tranche is automatically triggered the following month.
The employer does not need to take any action: the increase applies automatically to all compensation. The employee benefits from the increase without having to request it.
Impact on your salary
Each indexation triggers a 2.5% increase in gross salary, resulting in a higher net salary after taxes and social contributions. The net impact varies depending on your tax class and income level.
Gross salary of EUR 4,000
Gross increase: +EUR 100/month
Approximately +EUR 70 to 80 net depending on tax class
Gross salary of EUR 6,000
Gross increase: +EUR 150/month
Approximately +EUR 90 to 110 net depending on tax class
Next indexation: Q2 2027
Now that the June 1, 2026 tranche has been applied (see the dedicated article), the next tranche is expected in Q2 2027 under STATEC's central scenario. Forecast inflation is 1.8% in 2026 and 1.8% in 2027.
Alternative scenarios: Q1 2027 if inflation runs high (2.4%), or later in 2027 if it runs low (1.4%).
Recent indexation history
| Date | Index | Increase |
|---|---|---|
| 1 June 2026 | 992.24 | +2.5% |
| 1 May 2025 | 968.04 | +2.5% |
| 1 September 2023 | 944.43 | +2.5% |
| 1 April 2023 | 921.40 | +2.5% |
| 1 September 2022 | 898.93 | +2.5% |
| 1 April 2022 | 877.01 | +2.5% |
| 1 October 2021 | 855.62 | +2.5% |
Simulate the impact on your salary
Use our simulator to calculate your current net salary, then click on "Indexation +2.5%" in the results to see the impact of the next indexation.