How your Luxembourg bank balance will be affected in 2017

A number of changes to earnings and personal finance entered into effect on January 1, 2017.

The most eagerly awaited was the application of the next index segment, obliging employers to increase salaries by 2.5% which should affect pay packets at the end of the month.

People earning the minimum social wage will see a small increase in their monthly wages as the lower earning threshold rises by 1.4%.

This means that unqualified minimum wage earners aged 18 or over will take home 1,998.59 euros and their qualified counterparts will receive 2,398.30 euros.

People receiving jobseekers allowance, known as RMG, will also see their benefits rise, which means that a single adult will receive 1,401.18 euros per month and a two-person household will get 2,101.80 euros.

Pensions & parental leave payments

Retired people receiving the basic state pension will see a 3.4% increase in what lands in their bank account each month, bringing the minimum basic pension to 1,771.75 euros per month. This is based on a 0.9% annual readjustment plus the 2.5% index increase.

People on parental leave, meanwhile, will receive from 1,998.59 euros per month (11.55 per hour) up to a ceiling of 3,330.98 euros per month (19.25 per hour).