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On 1 April, a number of changes will take effect in Luxembourg, including an increase in income due to wage indexation.
Wage indexation
A new wage indexation will be triggered on Saturday 1 April 2023. This second indexation of the year corresponds to the one that was deferred in July 2022. Among other things, salaries and pensions will therefore increase by 2.5%.
Calculate the effect on your gross income here:
Energy tax credit repealed
The energy tax credit, which has been in effect since the summer of 2022 to compensate for the untriggered index, will disappear from your payslip in April. The credit was based on your salary and could amount to up to €84 per month. With the addition of the index and the removal of the tax credit, it is possible that April's income will be lower than March's. For some people, the tax credit was in fact more advantageous than the index.
The Ministry of Social Security, for example, anticipates a difference of -€34 on a €2,000 pension: +€50 with the index but -€84 without the tax credit.
Pensions, minimum wage, benefits: it's all going up
The social parameters are adapted automatically with the indexation of income. Here are the updated figures:
- non-qualified minimum social wage: €2,508.24
- qualified minimum social wage: € 3,009.88
- minimum pension: €2,165.58
- inclusion allowance: €879.94
- family allowance: €292.54 per child
- cost of living allowance: €1,652
Increase in health care fees
The fees for doctors' procedures and services are rising along with the index. The cost of a consultation with a general practitioner has increased to €56.30, while prescription renewals are charged at €18. Don't worry though, the reimbursement rate remains unchanged: 88% for adults and 100% for minors.
You can also expect to pay €54.20 for an ophthalmology appointment and €40.80 for a gynaecology-obstetrics appointment.
You can find the full price list in the Ministry's brochure (from page 19, in French).
What about the tripartite?
The government, employers and trade unions reached a new tripartite agreement in early March. Several policies that have yet to be implemented will affect your income retrospectively.
In particular, a tax credit will be introduced in 2023 to limit your tax rate. It will be equivalent to two index brackets and will be retroactive to 1 January.
Contraception now free
One of the most significant changes that will take effect on 1 April is that contraception will be made available free of charge to all Luxembourg residents. The following contraception methods are included in the agreement:
- oral oestroprogestants for contraceptive use (contraceptive pill)
- transdermal oestroprogestins for contraceptive use (contraceptive patch)
- vaginal oestroprogestins for contraceptive use (contraceptive ring),
- oral progestins for contraceptive use (minipill),
- injectable progestins for contraceptive use (contraceptive injection),
- hormonal emergency contraception (morning-after pill),
- progestins for contraceptive use in the form of subcutaneous implants (the contraceptive implant),
- intrauterine device for contraceptive purposes (IUD),
- tubal ligation for permanent contraceptive purposes (sterilisation),
- surgery on the vas deferens for permanent male contraception (vasectomy)
Condoms, on the other hand, are not included. This is why the Ministry of Health has reaffirmed its commitment to continue distributing them in various locations throughout the country (hospitals, family planning, HIV consultation service of the Red Cross, etc.)
Covid-19: Final measures repealed
Three years after the start of the coronavirus pandemic, health measures are coming to an end in Luxembourg.The latest Covid-19 law, voted in mid-March, puts an end to the mask mandate in hospitals and retirement homes. Isolation is no longer required in the event of a positive test. The same is also true for the tracing of positive individuals.
However, the health authorities still recommend wearing a mask in the presence of vulnerable people and in certain circumstances. The same is true for isolating patients so that they do not infect their relatives.