Great news for the roughly 230,000 cross-border workers employed in Luxembourg. With the entry into force of a new index-linked wage tranche on June 1, 2026, salaries, pensions, and certain social benefits have been increased by 2.5%.
A flagship mechanism of the Luxembourg social model, indexation automatically adjusts income to changes in the cost of living, helping to safeguard the purchasing power of employees and households.
Here are the key changes to keep in mind. The amounts listed in this article are those in effect as of June 1, 2026, based on the index level of 992.24.
SALARIES
| Category | Before indexation | After indexation (June 1, 2026) |
| Unskilled SSM (18 years and older) | €2,703.74/month (€15.6285/hr) | €2,771.33/month (€16.0192/hr) |
| Skilled SSM | €3,244.48/month (€18.7542/hr) | €3,325.59/month (€19.2231/hr) |
| Youth aged 17 to 18 | €2,162.99/month (€12.5028/hr) | €2,217.06/month (€12.8154/hr) |
| Youth aged 15 to 17 | €2,027.80/month (€11.7214/hr) | €2,078.49/month (€12.0144/hr) |
PENSIONS
| Minimum pension (for a full 40-year career) | Before indexation | After indexation (June 1, 2026) |
| Monthly amount | €2,376.62 | €2,436.04 |
FAMILY BENEFITS
| Family allowance (children born on or after August 1, 2016) | Before indexation | After indexation (June 1, 2026) |
| Basic allowance | €307.35 | €315.04 |
| Children aged 6 to 11 | €330.04 (€307.35 + €23.23) | €338.85 (€315.04 + €23.81) |
| Children aged 12 and older | €365.34 (€307.35 + €57.99) | €374.48 (€315.04 + €59.44) |
Parental Leave
| Compensation | Before indexation | After indexation (June 1, 2026) |
| Minimum | €2,703.74 | €2,771.33 |
| Maximum | €4,506.23 | €4,618.88 |
For further details on the new amounts in effect, you can view the more comprehensive social parameters published by the Ministry of Social Security here.
