Workers in Luxembourg may get a 2.5% payrise at the end of the summer
Workers in Luxembourg may get a 2.5% payrise at the end of the summer, just in time to absorb the holiday overspend, according to Statec (pdf).
In its inflation forecast, the statistics body said it expected the next indexation of salaries to fall some time between July and September 2018. The rise, it said, was a result of a new increase in fuel prices, which could not be offset by lower than expected inflation forecasts of 1.3% in 2018.
“Cumulative inflation since the last indexation is getting closer to the 2.5% threshold, when a new indexation is triggered,” Statec said in a press statement.
The exact timing of the increase will, however, depend largely on the progress of oil prices. Statec stressed that its forecast is conditional on the US dollar and euro exchange rate and Brent oil prices remaining stable or falling. If Brent prices increase, the next indexation will fall in the last quarter of 2019, Statec reported.
Indexation is a mechanism whereby income payments in Luxembourg are adjusted in line with inflation increases. The last indexation occurred in January 2017.