Cost of living in Luxembourg

Luxembourg, 9 November 2016

A correction coefficient for Luxembourg: myth or reality? 4/4

How to ACT, and what actions should we take?

Luxembourg, 8 November 2016

Correction coefficient for Luxembourg: myth or reality? 3/4


What about the budgetary cost of a CC in Luxembourg?
Does Chapter V of the Multiannual Financial Framework (MFF) contain the necessary funds to pay for a CC in Luxembourg?


Luxembourg, 7 November 2016

Correction coefficient for Luxembourg: myth or reality? 2/4


Which provisions of the Staff Regulations apply?
What about the joint Belgium-Luxembourg index introduced in January 2014?
What has Union Syndicale Luxembourg done from the legal viewpoint?

Luxembourg, 3 November 2016

Correction coefficient for Luxembourg: myth or reality? 1/4

Communication from Union Syndicale Luxembourg to the staff of all the institutions in the Grand Duchy


Is it unrealistic to call for the introduction of a Correction Coefficient (CC) for Luxembourg?
The answer is NO. Why? Several reasons...


Salaries adapted to the cost of living in Luxembourg? NO

8.1% less purchasing power compared with Brussels in 2016!

Despite the principle enshrined in the Staff Regulations of equal purchasing power for EU staff, wherever they are assigned, a 2006 study carried out by the coordinated Organisations and DG.ESTAT showed that the staff of the European Institutions assigned to Luxembourg were suffering a loss of purchasing power, estimated at the time at 5.8%.

Since then, the gap has continued to widen, mainly due to housing costs: in 2016, our purchasing power has been reduced by more than 8% compared with our colleagues based in Brussels.

What are the causes?

  • The cost of housing in Luxembourg
  • Failure to take account, in the context of the pay method, of the spending parameters for households of EU staff based in Luxembourg
  • A degree of ambiguity in the Staff Regulations about the possibility of setting a correction coefficient for Luxembourg
  • The stubborn refusal of DGs HR and ESTAT to implement their 'monitoring obligation to carry out any studies required' for this purpose (cfr. Articles 12 and 13 - Annex XI of the Staff Regulations)

N.B.: The joint index for Belgium and Luxembourg introduced in 2014 is an illusion: it does not correct the disparity in purchasing power that existed at the outset, and suffers from substantial technical flaws (assimilation of 2 different inflation indices and their application to non-legitimised populations, as well as the absence of a survey on spending by households in Luxembourg.

What is the optimal solution according to Union Syndicale Luxembourg?

  • In the short-term, to carry out the studies required: surveys of housing costs and household spending in accordance with the provisions of the Staff Regulations (Articles 12 and 13 of Annex XI mentioned previously)
  • To demand that the Commission and other Institutions open a concertation procedure with the trade unions with a view to introducing a specific correction coefficient for Luxembourg as soon as possible.

What should the staff do?

  • Mobilise at inter-institutional level in Luxembourg and act at national political level
  • Elect a Staff Committee that is as representative as possible at local level
  • Ensure complementary action by the staff committees of all the institutions and the trade unions.
  • USL supports an action before the EU Tribunal to set aside the joint Be-Lux index and call for a specific correction coefficient for Luxembourg.[1]

[1]EFTA approved a correction coefficient of 8.1% for its staff in Luxembourg with effect from 01/01/2016.