Following the introduction of the economic tax credit in July, which boosted wages and pensions for workers and retirees, there is more positive news.
In the “Conjoncture Flash” publication of 31 July, STATEC confirms that the next wage indexation is still expected during Q3. With July nearly concluded, this means that the wage indexation will likely be triggered in August or September. The anticipated increase is set at 2.5% for both wages and pensions, marking the third such rise in 2023.
As of the end of June, the half-yearly average of the index had risen from 975.66 to 980.22 points. According to STATEC, the next wage indexation will be triggered once the value reaches 988.75.
The inflation rate remains a crucial factor in this context. In June, STATEC confirmed a slowdown, with prices rising by 3.2% year-on-year. The underlying inflation, used to calculate long-term trends, dropped to 4.7%, partly attributed to anticipated decreases in energy prices for 2023.
As part of the last tripartite agreement, the government has pledged to compensate employers for the wage indexation. For employees, however, there will be no change: the increase will be reflected in their pay slips – months before the adjustments to the tax scale and the CO2 tax credit are slated to take effect at the beginning of 2024.
You can use the calculator below to estimate your salary following the next indexation:
