In an updated inflation forecast published on Tuesday, the Federal Planning Bureau wrote that it expects the trigger index to be exceeded again before the end of 2026. This would trigger an increase in public sector salaries, pensions and benefits.
Federal Planning Bureau forecasts that trigger index will be exceeded during 2026
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Previously, the Federal Planning Bureau had assumed that the trigger index would not be exceeded in 2026. However, a slightly higher inflation forecast (1.8% rather than 1.7%) means that it now believes that this will be the case.
If the trigger index were to be exceeded, public sector salaries, benefits and pensions would automatically be increased. Last year the trigger index was exceeded twice, in January and December. As a result of the December breech benefits, pensions and public sector salaries will increase by 2% in March.
The Federal Government plans to impose a cap on the automatic 2% increase (in the case of public sector salaries to the first 4,000 euro and the first 2,000 euro in the case of benefits and pensions) twice during the current legislature. As yet the precise details and timing of the measure have yet to be determined.