Open-data series · Luxembourg ENFRLU

Index.lu — the counter for the next indexation tranche

In Luxembourg, salaries are indexed automatically: a +2.5% tranche kicks in as soon as the six-month moving average of prices reaches a legal threshold. This dashboard tracks that counter live, compares it to the threshold, and forecasts the next indexation — based on official STATEC data.

The trajectory: the six-month moving average climbs the ladder of thresholds

IPCN 6-month average · 1948 base ·

Each amber step is a trigger threshold — the threshold that triggers a tranche. They rise by exactly +2.5% one after another. The green curve is the six-month moving average of prices: when it crosses a step, the indexation is economically triggered. Dotted: its simulated trajectory under the central scenario (last 12 months' inflation, seasonal profile preserved).

The next threshold is calculated (last trigger threshold × 1.025): STATEC only publishes a trigger threshold when its tranche is triggered. The amber dots mark past crossings.

Six-month moving average (actual) Median of the simulations (band = P10–P90 of 2,000 trajectories) Trigger thresholds (×1.025)

The forecast — by simulating the mechanism, not by extrapolation

inflation scenarios · 36-month horizon

In the short term, the six-month moving average is partly written in advance: 5 of its 6 months are already published. Rather than extrapolating a slope — biased by base effects, such as the January sales dip dropping out of the window — we project the IPCN by replaying its seasonal profile under several inflation scenarios, then run the mechanism month by month up to the crossing.

% of the way is already “in the pipe”

Today's IPCN () is above the six-month moving average: the latter will rise mechanically, even without new inflation. But the remainder still requires ≈ % of price rises — at zero inflation, the threshold () stays out of reach. Range depending on the scenario: .

months

of delay on the tranche triggered in (applied in , tripartite agreement). Under normal conditions, application follows the crossing by about month — the payment date remains a political decision.

Trigger probabilities ( simulations)
Sensitivity: when does the average reach the next thresholds?
Inflation scenarioThreshold Threshold

Method: IPCN projected via seasonal profile with annual drift (Im = Im−12 × (1+g)); the momentum scenario, anchored on 3 months, is propagated with smooth compounding to avoid a discontinuity at the join. Six-month moving average recomputed month by month. Estimates — neither official dates nor application dates.

External reference (5 August 2026): STATEC lowered its inflation forecast to 1.8% for 2026 and 2.1% for 2027; in its central and low scenarios, “the next indexation tranche would come in Q3 2027”, and only an energy price surge like its high scenario would trigger one as early as Q4 2026. Source: STATEC, inflation forecast of 5 August 2026.

Rigor, proven: the model tested on its own past

backtest · horizon months

A forecast is only as good as its measured reliability. So we replay the method over the most recent tranches: each time, we step back months before the actual crossing, with only the data known at that date, and compare the prediction to the outcome.

Predicted vs actual — the 6 most recent of tested (including the 2022 shock)
ThresholdPredictedActualError

Simulator: what indexation costs you — or earns you

projected onto the forecast

A tranche means +2.5% on salaries, overnight. Choose your point of view, enter an amount: the simulator quantifies the impact of the next tranche (estimated ) then projects it onto the following ones.

Assumption (~12–14% in Luxembourg): the tranche also raises the employer's share.
Extra cost of the next tranche
/yr
Projection over timecumulativeimpact /yr
📄 Get this detailed cost estimate
Or get the automatic alert just below ↓

The 1st tranche is dated by the median of the simulations; the following ones are projected at the historical pace (~1 tranche every months since 1985 — indicative only, future inflation will decide. +2.5% compounded at each tranche.

The Index alert — the counter lands in your inbox

at every STATEC release

Never miss a tranche again

Every month, as soon as STATEC releases the IPCN: the new trigger probability and what it changes for your budget. One line, no spam.

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%
probability that the next tranche falls before
± months
median error of the model on the past — measured, not promised
forecast(s) archived and timestamped since

Forty years of indexation: slow, but relentless

tranches since

Since , the sliding wage scale has triggered tranches — about one every months. Cumulatively, they have raised the salary index by + %. Indexation is not a rare event: it is an underlying force that every employer must budget for.

Applicable index (salary index) · 1948 base
The last 6 tranches
Application dateApplicable indexIncrease

The applicable index is the index at which salaries are paid: each tranche multiplies it by 1.025.

What pushes the counter: monthly inflation

Monthly IPCN vs six-month moving average

The six-month moving average (green) smooths the monthly IPCN (blue). As long as monthly inflation stays above the average, the latter rises and moves closer to the threshold. This is the real engine of the counter — and what makes any forecast dependent on the next price figures.

Monthly IPCN Six-month moving average

Embed the counter on your site

widget & open data

Fiduciaries, payroll bureaus, media, HR intranets: the counter comes as an embeddable widget (one line of code, attribution included) and the full state of the calculation — average, thresholds, scenarios, probabilities — is served as open JSON.

The widget
<iframe src="https://index.sitraka.lu/widget.html"
        width="340" height="190" style="border:none"></iframe>
The data

The complete state of the counter, recomputed at every monthly STATEC release:

GET https://index.sitraka.lu/data/data.json

Source data CC0 (STATEC). For the widget and the JSON, attribution “Index.lu — Sitraka Forler” is requested. Co-branded version for your firm: email me.

Luxembourg's open-data series

6 dashboards · one signature

Index.lu is not standalone: it is the 4th piece of a six-part series that turns Luxembourg's public data into decision-making tools. One and the same method — official sources, verified calculation, zero dependencies — applied to six fields.

Cite this source

press · reports · social

Journalists, analysts, HR: take the figure, cite the source. The counter is updated at every STATEC release.