If the index is indeed triggered in July, as planned by the Statec, the CIE will replace it that month. (Photo: Jobs.lu)

If the index is indeed triggered in July, as planned by the Statec, the CIE will replace it that month. (Photo: Jobs.lu)

The energy tax credit will be paid in July, the finance ministry has confirmed. It was supposed to compensate for the postponement of the indexation initially planned for August, but is now being adapted to the latest Statec forecasts.

Prices are rising faster than expected. After the first wage indexation in April 2022, Statec estimated that a second one would be triggered in August. However, according to the latest estimates, it should in fact happen as early as 1 July. But the tripartite agreement to postpone a second indexation this year until April 2023 to help companies cope with rising prices will see workers  entitled to an energy tax credit (CIE). Initially announced for August, it is now set to be included on payslips in July.

The finance ministry confirmed the information to Delano’s sister publication Paperjam on 5 May.  "The CIE will be paid for the first time in July 2022 when the index falls. It will continue until April 2023, the date to which the indexation has been postponed.” So the credit will be handed out for nine months instead of eight. The impact of this extra month of payment on the state coffers is estimated to amount to €55m, according to the parliamentary committee.

The CIE will be given to residents and cross-border workers in Luxembourg alike. 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).

There is no need for employees to do anything says Marco Philippy from the tax administration. The CIE will automatically be added to workers’ payslips. 

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