Statec on 31 January said that its inflation estimate for January is 4.8%, leading to the half-yearly average of the index to exceed 964.64 points, triggering the indexation of wages but also pensions and family allowances by 2.5% in February.

Statec’s more detailed inflation analysis will be due on 10 February.

As a result of indexation, the minimum monthly gross wage for unskilled workers will rise from €2,387.4 to €2,447.085. The minimum wage for qualified persons over 18 years of age will rise from €2,864.88 to €2,936.502.

To calculate the monthly salary after indexation, multiply the current amount by 1.025, although there are some details to be taken into account for the net sum, such as the tax class.

A second indexation is due in April 2023. This is the July 2022 indexation that had been postponed and replaced by the energy tax credit. According to Statec forecasts, a third instalment could fall at the end of the year, or even in the third quarter in a high scenario.

Social partners last year had met in the framework of the energy crisis and decided to delay some index payments over fears that companies would be unable to face both rising costs and several payroll increases. 

Business unions have long called for a reform of the indexation system, which they argue places a heavy burden on companies and makes them less competitive, as well as leading to a wage-price spiral. 

This story was first published in French on . It has been translated and edited for Delano.