The Luxembourg Business Union (UEL) has spoken out stating that it is ‘not normal’ that the 2.5% indexed wage increase is applied to every worker in the Grand Duchy and advocates a sector-based system instead.

In an interview with Radio Latina on Thursday Jean-Jacques Rommes, president of UEL, points out that the current blanket indexation system does not take into account productivity of each work sector.

He stated that although most can cope with the cost of indexing, there are companies that are “not so lucky”.

Rommes defended salaries that are compensated by the increase of inflation, but reiterated the position of the employers in this matter who may not agree with the system currently in force.

Wages and pensions will be adjusted to the cost of living later this month. The last indexation dates back to October 2013.