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Statec’s Marc Ferring explained researchers observed a “general price increase for language courses in September,” with the tariffs of some private education courses increasing on average by 15% compared to previous rates.

“This price adaptation resulted in an increase in the “education” position in the consumer price index”, Ferring explained. Delano contacted four of the country’s leading private language schools. Berlitz and Inlingua responded they had not increased their rates. The latter said it intended to apply the August 2018 indexation increase to its rates in January 2019.

Mastercraft director Guy Achten said his firm had increased its rates at around 4% for the start of the September year. He blames state subsidies along with changes in the nationality criteria which he says have caused demand for Luxembourg language courses to explode, prompting Luxembourgers to command a higher wage.

“The Luxembourgers could go and work for the state. That’s the big problem,” Achten said, explaining that a teacher in the public school system earns more than twice what a private language school could pay a Luxembourg language teacher.

When he founded Mastercraft 12 years ago, he said costs were considerably lower. But generous state subsidies, such as the “congé linguistique” (language leave), compensating employers for a minimum of 80 working hours lost while a staff member is learning Luxembourgish, have served only to increase demand.  “It’s nearly paying 100% of the course. Even in some weird cases the company can get more money back than they paid,” Achten said.

The entrepreneur and teacher said that indexation of wages was also to blame for increasing teaching costs. Luxembourg and Belgium are the only two countries to apply this sliding wage scale which pegs wages to inflation increases among goods and services.

“I’m completely against the index. It’s a complete nonsense. It’s good for politicians to say at elections they will give the index and people are happy to have €50-€60-€90 euros more. But it’s a fake. Because in the end they have less,” he said.