Just read this one month old article in RTL https://today.rtl.lu/news/luxembourg/a/1765955.html
Does this wage indexation apply to all private sector? How to know if it were applied other than the obvious higher than usual salary? Is it usually mentioned in the payslip or somewhere else?
Also what happens if the inflation went down next year? Do wages scale back or you get to keep the increases?
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It applies to everyone, public and private. It will be widely mentionned in the news. You will get min. +2.5% on your gross (some employers add some bits to it).
It does not impact salaries if inflation goes down. But if it goes down 5%, we need to wait for it go up 7.5% before the next +2.5% on the salary.