Immigration

Luxembourg | Mandatory 2.5% salary indexation effective 1 June, 2026

Summary

As of 1 June, 2026, the salary index applicable to employees in Luxembourg increased from 968.04 to 992.24. This automatic indexation mechanism is designed to protect purchasing power by linking wage and pension increases to inflation.

As a result, there is a mandatory 2.5% increase in gross salaries for employees under employment contracts governed by Luxembourg law. This applies to employers of third-country nationals in the same way it applies to other employees working under Luxembourg labor law.

The detail

EU – ICT work permit

The minimum gross monthly salary increases from EUR 3,244.48 to EUR 3,325.59.

 

Salaried worker permit

Qualified workers: The minimum gross monthly salary increases from EUR 3,244.48 to EUR 3,325.59.

Non-qualified workers: The minimum gross monthly salary increases from EUR 2,703.74 to EUR 2,771.33.

 

Work Permit based on EU Blue Card regulation

The minimum salary threshold was increased to 65,652 EUR with an effective date of 3 March, 2026 and is not impacted by the June 2026 indexation.

 

What this means

Employers must ensure that compensation packages meet the new threshold at the time of work permit application and, ideally, throughout the duration of the assignment.

Failure to apply the mandatory indexation may expose employers to several risks, including:

• Work permit issues: Applications or renewals may be rejected if salary thresholds are not met
• Administrative penalties: Authorities may impose fines or other sanctions for breaches of Luxembourg labour law
• Reputational risk: Non-compliance can impact employer credibility with authorities and employees
• Increased scrutiny: Non-compliant companies may face closer monitoring in future immigration or labour inspections

 

How we can help

For tailored support on the applications for the above-mentioned permit types and compliance with the new threshold, please reach out to Vialto Partners Luxembourg.

Our Luxembourg immigration team actively monitors legislative updates to keep clients informed. We provide:

• Strategic immigration advisory and compliance guidance
• Work and residence permit support
• Assistance with posted worker declarations (eBadge)

 

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Maud Aupetit
Director

Rébecca Serval
Senior Associate

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