Minimum earnings: changes to come in Luxembourg & More Trending News


The Luxembourg authorities has agreed to a 3.2% improve of the minimal social wage as from 1 January 2023. In addition, like different Member States of the European Union, by November 2024 Luxembourg may have to make sure that the minimal social wage is certainly compliant with the brand new EU Directive on satisfactory minimal wages.

1. Increase of the minimal social wage and social earnings on the horizon

On 25 November 2022, the Council of Ministers permitted two payments geared toward elevating the usual of residing for essentially the most weak individuals given the present financial context.

These payments amend respectively:

  • Article L. 222-9 of the Labour Code[1]; and
  • the legislation of 12 September 2003 on disabled individuals and the legislation of 28 July 2018 on social inclusion earnings.

These payments goal to improve by 3.2%[2]:

  • the minimal social wage as from 1 January 2023;
  • the social inclusion earnings (REVIS); and
  • the earnings for the severely disabled (RPGH).

These measures are a part of the Tripartite Coordination Committee’s settlement of 28 September 2022, which geared toward, amongst different issues, introducing a sequence of measures to fight inflation and mitigate its unfavorable impact on family budgets.

At the time of this Newsflash, these two payments haven’t but been laid earlier than Parliament however they need to be shortly.

2. Towards a rise of the Luxembourg minimal social wage?

Directive (EU) 2022/2041 of 19 October 2022 on satisfactory minimal wages in the European Union (the “Directive“) was adopted on 19 October 2022 and took impact on 14 November 2022. Luxembourg may have to implement this Directive into nationwide legislation inside two years.

The goal of the Directive is to promote satisfactory minimal wages throughout the European Union, bearing in mind “both wage distributions, productivity, the economy in general and the level of purchasing power in the various Member States”[3] in order to enhance the working and residing situations of EU staff.

The Directive doesn’t impose a harmonisation of minimal social wages on Member States, nor a uniform and binding European minimal wage per se, however it does put in place:

  • procedures for setting and updating minimal social wages in accordance to a set of exact standards in order that they’re satisfactory and may assure respectable residing and dealing situations;
  • the promotion of collective bargaining agreements[4] on wage-setting – with an motion plan to be established in this respect for Member States the place lower than 80 % of staff are coated by a collective bargaining settlement (Luxembourg being considered one of them)[5];
  • measures on enhancing staff’ efficient entry to the safety provided by minimal social wages (bolstered controls, entry to data, sanctions).

The Directive additionally gives that updates to the statutory minimal wage should happen at the very least each two years (or on the newest each 4 years for Member States which use an computerized indexation mechanism, reminiscent of Luxembourg for instance).

The Directive have to be applied into Luxembourg legislation by 15 November 2024 on the newest.

Minimum earnings: changes to come in Luxembourg

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Minimum earnings: changes to come in Luxembourg

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Minimum earnings: changes to come in Luxembourg

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