The agreement is meant to absorb the economic repercussions of Russia’s war in Ukraine on households and businesses. Specifically, the state will compensate businesses for the wage indexation which is expected to be triggered in autumn.
Households will continue to benefit from reduced energy prices through the end of 2024. The energy grant for recipients of the cost-of-living allowance will also be extended. Furthermore, the government has pledged to adjust the tax table by 2.5 wage indexations in 2024 and introduce a tax credit equivalent to an adjustment of the table by two indexations in 2023.
A rundown on the latest tripartite measures
In terms of housing, the tax credit on notarial instruments (“Bëllegen Akt”) will be increased, conditions for home loan tax write-offs will be improved, and designating a flat for social renting will become more advantageous.
The signing marks the third tripartite agreement reached by the government and social partners in less than a year.
