RTL Today - State budget debates: Luxembourg Chamber of Commerce calls for capped wage indexation system

<!DOCTYPE html> <html lang="en" class="theme-today"> <head> <meta charset="utf-8"> <title>RTL Today - State budget debates: Luxembourg Chamber of Commerce calls for capped wage indexation system</title> <meta property="og:title" content="State budget debates: Luxembourg Chamber of Commerce calls for capped wage indexation system" /><meta property="og:type" content="article" /><meta property="og:description" content="With labour costs exceeding those of its neighbours, the Chamber of Commerce is urging reforms to wage indexation to safeguard Luxembourg's economic competitiveness." /><meta property="twitter:card" content="summary_large_image" /><meta property="twitter:site" content="RTL.lu" /><meta property="twitter:creator" content="Thomas Toussaint (RTL Infos) adapted for RTL Today" /><meta property="twitter:title" content="State budget debates: Luxembourg Chamber of Commerce calls for capped wage indexation system" /><meta property="twitter:description" content="With labour costs exceeding those of its neighbours, the Chamber of Commerce is urging reforms to wage indexation to safeguard Luxembourg's economic competitiveness." /><meta property="twitter:image" content="https://www.rtl.lu/sassets/rtl2008.lu/nt/p/2024/11/27/16/8a2d3148c93809fabec1166c97237c08.jpeg" /><meta property="og:image" content="https://www.rtl.lu/sassets/rtl2008.lu/nt/p/2024/11/27/16/8a2d3148c93809fabec1166c97237c08.jpeg" /><meta property="og:url" content="https://today.rtl.lu/news/luxembourg/a/2254500.html" /> <meta charset="utf-8"> <meta http-equiv="X-UA-Compatible" content="IE=edge" /> <meta name="viewport" content="width=device-width,minimum-scale=1,initial-scale=1" /> <meta name="google-site-verification" content="qRv1iGl6N2MfEsEncxCJN3cXClFCUUN7ebwf6a5vQyc" /> <meta name="apple-itunes-app" content="app-id=1335630401" /> <link rel="dns-prefetch" href="https://www.google-analytics.com"/> <link rel="dns-prefetch" href="https://gabe.hit.gemius.pl"/> <link rel="dns-prefetch" href="https://ls.hit.gemius.pl"/> <link rel="dns-prefetch" href="https://tpc.googlesyndication.com"/> <link rel="dns-prefetch" href="https://securepubads.g.doubleclick.net"/> <link rel="dns-prefetch" href="https://stock.rtl.lu"/> <link rel="dns-prefetch" href="/components"/> <link rel="dns-prefetch" href="/assets"/> <link rel="preconnect" href="https://www.google-analytics.com"/> <link rel="preconnect" href="https://gabe.hit.gemius.pl"/> <link rel="preconnect" href="https://ls.hit.gemius.pl"/> <link rel="preconnect" href="https://tpc.googlesyndication.com"/> <link rel="preconnect" href="https://securepubads.g.doubleclick.net"/> <link rel="preconnect" href="https://stock.rtl.lu"/> <link rel="preconnect" href="/components"/> <link rel="preconnect" href="/assets"/> <link rel="preload" href="/assets/js/rtl.bundle.js?v=202502251729" as="script"> <link rel="preload" href="/components/rtl.bundle.js?v=202502251729" as="script"> <link rel="icon" href="/assets/images/favicon-rtltoday/favicon.ico?v=202502251729" sizes="any" /> <link rel="icon" href="/assets/images/favicon-rtltoday/favicon.svg?v=202502251729" type="image/svg+xml" /> <link rel="apple-touch-icon" sizes="57x57" href="/assets/images/favicon-rtltoday/apple-touch-icon.png?v=202502251729" /> <link rel="manifest" href="/site.webmanifest"> <link rel="stylesheet" href="/components/vendor/theoplayer6.10.0/ui.css?v=202502251729" /> <link rel="stylesheet" href="/assets/styles/main_today.css?v=202502251729" /> <script type="text/javascript">window.gdprAppliesGlobally=true;(function(){function a(e){if(!window.frames[e]){if(document.body&&document.body.firstChild){var t=document.body;var n=document.createElement("iframe");n.style.display="none";n.name=e;n.title=e;t.insertBefore(n,t.firstChild)} else{setTimeout(function(){a(e)},5)}}}function e(n,r,o,c,s){function e(e,t,n,a){if(typeof n!=="function"){return}if(!window[r]){window[r]=[]}var i=false;if(s){i=s(e,t,n)}if(!i){window[r].push({command:e,parameter:t,callback:n,version:a})}}e.stub=true;function t(a){if(!window[n]||window[n].stub!==true){return}if(!a.data){return} var i=typeof a.data==="string";var e;try{e=i?JSON.parse(a.data):a.data}catch(t){return}if(e[o]){var r=e[o];window[n](r.command,r.parameter,function(e,t){var n={};n[c]={returnValue:e,success:t,callId:r.callId};a.source.postMessage(i?JSON.stringify(n):n,"*")},r.version)}} if(typeof window[n]!=="function"){window[n]=e;if(window.addEventListener){window.addEventListener("message",t,false)}else{window.attachEvent("onmessage",t)}}}e("__tcfapi","__tcfapiBuffer","__tcfapiCall","__tcfapiReturn");a("__tcfapiLocator");(function(e){ var t=document.createElement("script");t.id="spcloader";t.type="text/javascript";t.async=true;t.src="https://sdk.privacy-center.org/"+e+"/loader.js?target="+document.location.hostname;t.charset="utf-8";var n=document.getElementsByTagName("script")[0];n.parentNode.insertBefore(t,n)})("77af67f2-d74a-428a-b7f1-7bc398b5fc06")})(); 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data-pagetype="article" data-container=""></div> </div> </div><article class="article flavor-news--article"> <header class="article__header"> <div class="article__heading article-heading"> <div class="article-heading__inner grid-container"> <div class="article-heading__kicker"> State budget debates </div> <h1 class="article-heading__title"> Luxembourg Chamber of Commerce calls for capped wage indexation system </h1> <div class="article-heading__metainfo"> Thomas Toussaint (RTL Infos) adapted for RTL Today<span class="article-heading__seperator">|</span><span>Update: </span>27.11.2024 17:29 </div> </div> </div> </header> <div class="article__content"> <div class="article__inner grid-container"> <div class="article__col" id="article_col"> <div class="article__main-media article-media"> <div class="article-media__image"> <div class="media-image"> <div class="media-image__container"> <img class="media-image__image responsive-img" src="https://stock.rtl.lu/rtl/1225/rtl2008.lu/nt/p/2024/11/27/16/8a2d3148c93809fabec1166c97237c08.jpeg" loading="lazy" alt="RTL"/> </div> <p class="media-image__summary"> © Envato </p> </div> </div> </div> <div class="article__body article-body"> <p class="article-body__summary"> With labour costs exceeding those of its neighbours, the Chamber of Commerce is urging reforms to wage indexation to safeguard Luxembourg's economic competitiveness. </p> <div class="article-body__detail js-article-body-detail"> <p>The Chamber of Commerce has renewed its call for a reform of Luxembourg's wage indexation system, citing concerns over the country's labour costs, which remain the highest in the Greater Region. This stance was reiterated in the Chamber's assessment of the proposed 2025 state budget, where it emphasised the need to address competitiveness challenges for businesses.</p><p>According to the Chamber, labour costs in Luxembourg averaged €53.90 per hour in 2023, significantly higher than neighbouring countries such as Belgium (€47.10), France (€42.20), and Germany (€41.30). The Chamber warned that these disparities could further erode Luxembourg's competitive edge. "To prevent Luxembourg's competitive disadvantage in terms of labour costs from worsening, it is urgent to reform the system of automatic and generalised wage indexation," it stated. A survey cited in the report indicates that 57% of entrepreneurs view labour costs as a key challenge for 2025.</p><p>The Chamber proposes a "three-pillar reform" to address the issue:</p><div class="ad-slot ad-slot--inside-article is-visuallyhidden"> <div class="ad-slot__inside-article"> <div class="js-ad js-ad--inside-article" id="inside-article" data-position="inside-article" data-articleid="" data-tags="" data-pagetype="" data-container=""></div> </div> </div><p><ul><li><strong>Economic Pillar:</strong> Limit wage indexation to one adjustment per year to provide employers with greater predictability.</li><li><strong>Social Pillar:</strong> Guarantee full indexation for employees earning up to 1.5 times the median income, with a capped and progressively reduced adjustment for those earning between 1.5 and 5 times the median income.</li><li><strong>Environmental Pillar:</strong> Tie wage indexation to a "sustainable basket" to align with environmental goals.</li></ul></p><h2 class="article-title">One indexation per year: A shared goal, but capped indexation faces resistance</h2><p>While the Chamber of Commerce aligns with the government's intention to limit wage indexation to one adjustment per year, its proposal to cap and reduce indexation for high earners remains at odds with current policy.</p><p>The coalition agreement between the Christian Social People's Party (CSV) and the Democratic Party (DP) explicitly pledges to preserve wage indexation "in its current form." This contrasts sharply with the Chamber of Commerce's call for a capped and degressive indexation mechanism for higher salaries, as suggested by Carlo Thelen, the Chamber's director.</p><p>STATEC data from July 2024 indicates that Luxembourg's median gross annual salary for full-time workers stands at €58,126, or roughly €4,844 gross per month. The Chamber's proposal seeks to fully preserve indexation for incomes up to 1.5 times this median amount (€7,265 gross per month). Above this threshold, the 2.5% indexation would gradually decrease, capping for salaries up to €19,373 gross per month and tapering off entirely by €24,216 gross per month.</p><p>This approach would therefore primarily target the highest earners, a small segment of the workforce. However, it challenges the "universal" nature of wage indexation–a cornerstone of Luxembourg's social model staunchly defended by trade unions and the Chamber of Employees. Introducing such a precedent could fundamentally alter this longstanding mechanism, and its adoption remains highly uncertain amidst significant opposition.</p><div class="media-embed media-embed--facebook"> <div class="media-embed__post"> <iframe data-consent="didomi" data-vendor="facebook" data-src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fccluxembourg%2Fposts%2Fpfbid02C7oieHH5FPS71bL2ZycXXvC9iaekARGMbryf8f9w2hcMQDX9HwLCA3bgzAfZVrUul&show_text=true&width=500" width="500" height="715" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share"></iframe> </div> </div> <p></p></div> </div> <div class="article__toolbox article-toolbox app-hide"> <div class="socialbar is-sticky"> <div class="socialbar__item"> <a href="https://www.facebook.com/sharer/sharer.php?u=https://today.rtl.lu/news/luxembourg/a/2254500.html" target="_blank" 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