In January, the annual inflation rate reached 4.8%, exceeding the established limit. Therefore, the law on the indexation of salaries, pensions, and family allowances will apply as early as tomorrow, February 1, increasing payments by 2.5%.
For people with different income levels, the increase will range from 60 euros to more than 200 euros per month. Moreover, following February's indexation, the next increase will happen soon.
Another income indexation is expected in Luxembourg in April. Though it has been postponed from 2022 by a three-party agreement. If inflation remains at the current level, the government, labor unions, and employers will have another meeting to discuss further steps for balancing the situation.