Pensions in Luxembourg will increase by 1.6% starting January 2025, following a government analysis of average salaries while minimum wage and social benefits see a 2.6% boost amid ongoing pension reform debates.
As stipulated by the Social Security Code, the government analyses each year whether pension adjustments are necessary based on average salaries. The General Inspectorate of Social Security has set a revaluation factor of 1.595 for 2023, which means that pensions increase by 1.6% as of 1 January 2025.
The approval comes one week after a similar adjustment of the minimum wage, both qualified and unqualified, which will increase by 2.6%. The same increases also apply to the Social Inclusion Income (REVIS) and the revenue for people with a severe disability.
Amid ongoing debates about pension system reform, the Chamber of Employees has strongly opposed proposed pension cuts, highlighting concerns over the rising risk of poverty among retirees.
