Wage indexation on 1 April 2022

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Newsflash
Datum:
30 Mär 2022

Newsflash

In a press release dated 30 March 2022, Luxembourg’s office of national statistics (STATEC) announced that wages will be indexed on Friday 1 April 2022.

According to the provisional results published by STATEC, the annual inflation rate for the national consumer price index (“indice des prix à la consommation national” or IPCN) is 6.1% for March. The new sliding wage scale index for salaries is changing to 877.01 points and comes into force on 1 April 2022, resulting in a 2.5% rise in wages, salaries and pensions on this date.

The final results for the March national consumer price index will be released on 8 April 2022.

In addition, the salary index on 1 April 2022 affects the different thresholds and limits stipulated by law, summarised in the table below[1]:

As of 1 April 2022 (gross totals, index 877.01):

 

Monthly social minimum wage (SSM)

(art. L. 222-9 and L. 223-1 of the Labour Code)

 

 

      2,313.38.- EUR (non-qualified employee)

2,776.05.- EUR (qualified employee)

 

  • Agreed compensation
  • Damages and interest for unfair dismissal set by the labour court,
  • Voluntary compensation in the event of resignation or termination by mutual agreement

(art. 115 para. 1 point 9 of the L.I.R.)

 

 

Automatically exempt from tax up to:

 

27.083,40 - EUR (unchanged)

 

(12 x the SSM for non-qualified workers applicable on 1 January in the taxation year)

 

 

Starting minimum monthly wage required to apply a trial period of 7 to 12 months

(art. L.121-5 (2) of the Labour Code)

 

4,700.77.- EUR

 

Minimum gross annual salary required at the end of the contract to apply a non-competition clause after the end of the employment contract

(art. L. 125-8 (3) of the Labour Code)

 

over 59,786.38.- EUR

 


[1] The amounts mentioned above are provided for information purposes and are subject to official confirmation.