Understand
Pension glossary
The key terms in calculating your Luxembourg pension, explained in plain language.
Applicable index (sliding scale)
The value of the cost-of-living index applied to salaries and pensions at a given moment (992,24 on 1er juin 2026). When the index rises by 2,5 %, a new "index bracket" automatically revalues pensions.
Base-100 index (n.i. 100)
The baseline reference, set to the cost of living as of 1er janvier 1948. Career earnings are brought back to it to neutralise inflation before being compared (art. 220 CSS).
Reference amount (art. 222 CSS)
The statutory base value of the calculation: 2 085 € at n.i. 100 (base year 1984). It serves as the basis for the flat-rate increments and is revalued to give today's amounts.
Flat-rate increments (MF, art. 214 CSS)
The portion of the pension linked to the LENGTH of insurance: one fortieth per year (max 40 years), regardless of salary.
Proportional increments (MP, art. 214 CSS)
The portion of the pension linked to your contributory EARNINGS: a percentage of the sum of your career earnings. The rate is capped at 2,05 %.
Qualifying period (art. 183/184 CSS)
The minimum insurance period required to establish entitlement: 120 mois (10 ans) at 65 ans; 480 mois (40 ans) for the early pension at 57 ou 60 ans.
Phasing (échelonnement)
The increase in the rate of the proportional increments when (age + years of insurance) exceeds a threshold: retiring later raises the rate slightly, up to the cap of 2,05 % (art. 214 CSS).
Aggregation (règl. CE 883/2004)
The adding together of periods completed in the EU/EEA/Switzerland (and countries with which an agreement is in place) to reach the qualifying period and establish entitlement; each country then pays its own share.
Compulsory / continued / voluntary insurance / buy-back
The insurance categories of the general scheme: compulsory (art. 171, professional activity and assimilated periods), continued (art. 173), voluntary (art. 173bis) and retroactive buy-back of periods (art. 174).
Sources: Code de la sécurité sociale (art. 171-174, 183-184, 214, 220, 222); secu.lu, cnap.public.lu, statistiques.public.lu.