Luxembourg's national statistics office confirmed Tuesday morning that a new wage indexation will take effect on 1 May 2025, resulting in a 2.5% increase in wages and pensions.

The National Institute of Statistics and Economic Studies (STATEC) on Tuesday confirmed that the trigger was activated after the national consumer price index (ICPN) reached 1.7% in April, surpassing the threshold of 1,013.46 points required for an automatic adjustment.

The index mechanism is designed to protect purchasing power by linking pay and pension increases to inflation.