According to Statec’s latest forecast for 2023, inflation is due to reach 3.4% this year. If that comes to pass, it will trigger a third indexation later in the year.
The first indexation was triggered at the start of this month, and the Index Commission met to readjust social payments effective from 1 February 2023.
Several social minimums had already seen an increase on 1 January of this year. For instance, Luxembourg’s social minimum wage was increased by 3.2%, which put it at €2,387.40 for unskilled workers. Following the new indexation, the unskilled minimum wage will stand at €2,447.07 - an increase of €59.67.
For a qualified worker, the minimum wage will increase by €71.60 and thus draw closer to the symbolic bar of €3,000, which will be reached with the next indexation due to come into force on 1 April after being deferred since the summer of 2022. The qualified minimum wage is now €2,936.5.
Family allowances, which were adjusted in January, will climb by 2.5%. Child benefit will be fixed at €292.54 per month, per child, representing an increase of €7.13 per child, and an extra €12.79 since the end of last year. Families with children aged between 6 and 11 years will see an increase of €22.11 per child, while parents to children over 12 will receive €55.19 more.
Thanks to the new index, social inclusion income (Revis) will rise to €1,715.61 for an individual - €41.83 more than the previous month. A household of two people receiving Revis will receive around €63.75 more per month, or €2,573.55.
Finally, the minimum pension for a sole retiree will rise by €51.51 to €2,112.77. The maximum personal pension will jump up by €238.51 to €9,781.34.
In comparison, the cost of living benefits as of 1 January 2022 were as follows:
