Each 1 January, the Inspectorate General of the Social Security (Inspection générale de la sécurité sociale, IGSS) updates the list of social parametres for Luxembourg. It is based on these parametres that e.g. salaries, pensions, contributions, allowances and benefits are calculated. 1 January 2017 saw not only various legal provisions come into force, but it was also in that day that the new indexation of salaries has become effective.
Salaries, wages and social benefits (including the social minimum wage) are, on the other hand, adjusted in line with the evolution of the cost of living. If the consumer price index has increased or decreased by 2.5% in the previous half year, salaries are in principle adapted in the same proportions — which was the case on 1 January
Other modifications result from the entry into force of various legal provisions, especially through the application of legal mechanisms of adjustments, which apply in addition to the aforementioned increase of 2.5%.
Thus, pensions are adjusted by 0.9% (annual adjustment) and the minimum social wage (SSM) is revalued by 1.4%. Similarly, the amounts of the minimum guaranteed income (RMG) and income for severely disabled persons (RPGH) are also revised upwards by 1.4%.
Finally, monetary values of the long-term care insurance have also been adapted.
(Source: press release of the Ministry of Social Security / Inspectorate General of the Social Security)