There is a good chance that the trigger index will be exceeded, albeit by a hare’s breath, before the end of the year. That’s according to the latest forecast from the Federal Planning Bureau. If this were to be the case public sector employees would see their salaries rise by 2% in March. If the trigger index were to be exceeded before the end of this month it would be bad news for the Federal Government as they intend to cap any index-linked pay rises resulting from the trigger index being exceeded in 2026 and 2028.
Trigger index likely to be exceeded before the end of the year says Federal Planning Bureau
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Under the Federal Government’s plans that were announced last week as part of the multi-year budget only the first 4,000 euro of a monthly salary or the first 2,000 euro of a monthly benefit payment or pension will be indexed. However, in the trigger index in exceeded before the end of the year the entire salary, pension or benefit payment will be increased. Furthermore, if the trigger index is exceeded some time before the end of December 2025 forecasters believe that the next time it will ber exceeded won’t be until 2027.
As well as public sector workers, pensioners and those on benefits, some private sector workers’ wages also rise by 2% when the trigger index is exceeded. Others receive an inflation-linked pay-rise at other times during the year.
The last time that the trigger index was exceeded was in January this year.