CGFP requests index point value increase of over 8%

CGFP negotiations always happen behind closed doors, and their demands remain a secret. The new wage agreement for the civil service has been upcoming for a while, and the demands have also been sitting on the responsible minister Serge Wilmes's desk for a while. The demands include a substantial increase of the index points, the same index points that are used to attribute someone's salary.

So far, all that is known about CGFP's plans is the index point value increase as president Romain Wolff told RTL in December last year. The confederation did not want to share exact numbers or details of their requests since they would not be negotiated publicly.

RTL has been informed directly by a few sources that the CGFP is asking for an index point value increase of about 8% with CGFP requesting two installment of 4.1% each, within the timeline of two years.

Does it have an impact on salaries and state budget?

According to the civil service's website, the current monthly value of an index point adjusted to the cost of living index, is €23.2752062. After an increase of 4.1%, it has been updated to about €24.2294896. Another increment of 4.1% would increase the amount to €25.2228987. The same source states that the index points for employees are a little lower, it currently corresponds to €22.039393. After two increments of 4.1%, it would come out to €23.8836715.

The salary of state employees is calculated based on theirindex  points which will then be multiplied by their index point value. The following two examples of civil servants showcase how the implementation CGFP's demands would impact their salary. A civil service worker in the C1 career category has 168 points which currently equals to €3,910.23, and after the implementations would equal to €4,237.44. A university degree holder in the A1 career category has earned 340 points which equals to €7,913.57 now and would increase to €8,575.78.

Naturally these are only theoretical examples, since it could be that these are extreme demands meant to be negotiated and eventually compromised on. This increase of point value would also mean an additional expense of €40 to 50 million for the government. However, a part of the money will inevitably return to the state's budget with the payment of taxes.

CGFP's statement

The minister of civil service Serge Wilmes is responsible for the negotiations. Nevertheless, in RTL's New Years' interview, Prime Minister Luc Frieden had announced that the minister of finance Gilles Roth and he himself would look in on the negotiations too.

Although the Independent Luxembourg Trade Union Confederation (OGBL) had expressed their interest in joining the roundtables, CGFP had made it clear in October 2024 that their presence was not wanted.

"The CGFP will in all probability enter into new salary negotiations with the government before the end of the year. The corresponding CGFP catalogue of demands is currently being drawn up and will be submitted to the government in due course.The Prime Minister assured the CGFP that, as the only nationally representative trade union in the public sector, it would be the sole negotiating partner in the forthcoming salary negotiations."

So far, the demands have not been published by the union nor by the government, even though they also affect tax revenue. Despite further inquiry, the responsible ministers and representatives have not shared any details on CGFP's wishes, nor have they agreed to give interviews on the subject.

A look at other countries

Similarly to Luxembourg, Germany has announced a new wage agreement for civil servants. The negotiations started on Friday, with the trade union Ver.di requesting an 8% increase of wages which comes out to an additional 350€ per month.

Other countries have opted for a more radical route. Argentina as well as the US have decided to drastically reduce administrations to save added expenses and to abolish certain regulations.