Pensions in Luxembourg will become higher from 2025
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According to article 225bis of the Luxembourg Social Security Code, pensions are reviewed annually on the basis of changes in the average salary level. The Government, based on the 2023 analysis of the Inspectorate General of Social Security (IGSS), has set a recalculation factor of 1.595, which results in a 1.6% increase in pensions as of 1 January 2025.
The revision of pensions is linked to the dynamics of salaries, which serve as the basis for pension contributions. This mechanism makes it possible to maintain the purchasing power of pensioners by adjusting payments in accordance with the economic situation in the country.
The 1.6 per cent increase will provide additional support to citizens who are already receiving a pension, against the backdrop of the current economic conditions. This decision confirms the government's commitment to social equity and income protection for the older generation.
