During the so-called tripartite negotiations in March the government, employers representatives and trade unions agreed to postponed the indexation of wages, salaries and pensions until April 2023. Photo: Shutterstock.

During the so-called tripartite negotiations in March the government, employers representatives and trade unions agreed to postponed the indexation of wages, salaries and pensions until April 2023.  Photo: Shutterstock.

The annual inflation rate has exceeded the threshold. This would normally trigger an indexation, indicates national statistics bureau Statec. 

Provisional results published by Statec indicate that the annual inflation rate of national consumer price index was 7.4% for June. The half-yearly average of the index linked to the threshold of the month of June has been exceeded.

During the so-called tripartite negotiations in March the government, employers representatives and trade unions agreed to postpone the indexation of wages, salaries and pensions until April 2023. A tax credit due to come in affect in July was introduced to counteract the effect of rising prices.

. It will be worth €84 net per month for people earning less than €3,667 (gross) per month. Thereafter, the amount decreases. For salaries between €3,667 and €5,667, the amount paid out is calculated as: 84 - (gross monthly income - 3,667) × (8/2,000); if you earn between €5,667 and €8,334, the calculation is: 76 - (gross monthly income - 5,667) × (76/2,667). No additional step is required by employees with the tax credit set to be automatically applied to their salary.

However, family allowance has not been impacted by the decision following the tripartite talks and is set to increase by 2.5% on 1 July after the threshold set by a family subsidy system was passed.

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