The national consumer price index for March 2025 fell slightly short of the level needed to trigger the automatic wage indexation this April, preliminary data from Statec, the national statistics bureau, shows. Wage indexation is a mechanism that links monthly salaries, wages and pensions to consumer-led inflation in Luxembourg, ensuring that workers’ salaries keep pace with rising prices. For March 2025, the indexation stood at 1.3%, which is below the 1.79% threshold for the adjustment to take effect.

As a result, the six-month moving average--calculated using the index from 1 January 1948--came in at 1012.65, just below the 1013.46 threshold needed for a 2.5% wage increase. This small shortfall means that workers won’t see the wage boost in April 2025.

However, the good news is that even a modest annual inflation rate of 0.6% would be sufficient to trigger the next automatic wage indexation, according to calculations made by Paperjam.

The last wage indexation adjustment was , over one and half years ago.