September 9, 2016 Luxembourg wages could be indexed before end 2016

Earners in Luxembourg could see a little windfall in their paypackets before the end of the year, as consumer prices inch closer to the threshold for wages to be indexed.

According to data analysts Statec, the indexation segment, as the inflation-pegged wage rise is known, could be applied to earnings and pensions as soon as the end of 2016.

The consumer price index rose by 1,16% from July to August, Statec said in a press release, attributing the change to the end of the summer sales.

"By neutralising the variations caused by the sales, prices of goods and services excluding petrol rose 0,15%", the analytical body said.

At the same time, the inflation rate which stabilised at 0% in July, rose 0,2% in August.

Statec said this meant that the six-month average increased by 2,2% since the last time wages were indexed, bringing it closer to 2,5% threshold. Statec subsequently revised its forecast for the next indexation of wages and pensions to the last quarter of 2016.

It forecasts are correct, it means that employers will be obligated to adjust wages and pensions up by 2,5%.