A first step towards negotiations has been made. On Monday 20 February, unions OGBL, LCGB, and CGFP declared that they want to meet with Prime Minister Xavier Bettel to discuss a subject that is technical yet essential for purchasing power, they say: the adaptation of the tax table to inflation.
While the majority of workers in the country are familiar with the wage indexation system, which increases employees’ gross salary when inflation reaches 2.5%, the net salary does not increase as much. This is due to the tax table, which is not indexed and therefore does not follow wage increases.
For each indexation, employees get a 2.5% gross increase, which however only results in a 1.75% net increase. “Without adjusting the table, this purchasing power is only compensated on the gross side while it continues decreasing on the net side”, argue the unions. “It is high time that this creeping and hidden increase in tax pressure comes to an end,” they demanded in a joint statement.
Yuriko Backes argued that adjusting the tax table to inflation would “not be responsible” at the moment. With only two weeks to go before the upcoming tripartite meeting with the government’s social partners, the politician from the Democratic Party has thereby made clear that she does not support one of the main demands made by unions.
Read also: Adjusting the tax table to inflation ‘not responsible': Yuriko BackesThe three unions have therefore “requested an urgent meeting with the Prime Minister” to “discuss the concrete modalities of such an adaptation” before the start of the upcoming tripartite meeting, scheduled for 3 March.
Late on Monday, Xavier Bettel said on Twitter that the government is currently preparing the tripartite meeting. He further announced that he has accepted the unions’ request: “I have invited the social partners to meet separately on 28 February, as they have requested”, he added.
