“Oh really, the index has fallen?” Sam, unemployed, is stunned. And yet his benefit, like all income subject to automatic indexation in Luxembourg, . On the other hand, Jennifer, who has worked in the insurance sector in Luxembourg for 15 years, was keeping a close eye on the news: “We knew that an indexation was coming, but we didn’t know when. We’re delighted. Even if... we still want more.”

This “better than nothing” sentiment comes back like a refrain. For Marc, a house painter, expectations were high: “We were looking forward to it. But 2.5% isn’t enough. It should have been at least 4%.” For him, the comparison with France reassures him: “We’re better off here.” This point is qualified by Manon, an ING employee and Belgian cross-border commuter: “If you work here and live elsewhere, that’s fine. But for those who live in Luxembourg, it’s more complicated.”

In the banking sector, Philippe welcomes the news with equanimity: “It’s a good thing if it follows the trend in consumer prices, but we have to be careful not to harm the country’s competitiveness.” Whilst the 50-year-old acknowledges that his sector remains relatively privileged in terms of purchasing power, he is nonetheless vigilant: “There is always a risk of a snowball effect on price rises.”

Increases that aren’t enough to cover everything

More than the increase in wages, it’s the gap with prices that raises questions. Jennifer mentions a specific issue: the luncheon voucher. “Where I work, it’s been revalued to €15. But I have friends who have stayed at €8.40. Eating at lunchtime at that price has become impossible. The government could force companies to adjust the amount of the meal voucher in line with the cost of living.”

Beyond the figures, some people are also questioning working conditions. Philippe, who lives in Luxembourg, is calling for greater flexibility: “Why not rethink flexible working?” he suggests. “Four-day weeks, more teleworking for cross-border commuters... it would save a lot of frustration.”

The indexation either delights or soothes depending on one’s situation. But listening to the reactions, one thing is clear: in a Luxembourg where the cost of living is constantly rising, the index is not an end in itself. It is, at best, an adjustment. And for many, a reminder that fairer, more equitable and, above all, more appropriate pay policies for day-to-day reality have yet to be invented.

This article was originally published in .