Minimum wage set to €2,201

Announced by Prime Minister Xavier Bettel in mid-November, the process of raising the social minimum wage has been launched. Our colleague from 5minute, Thomas Toussaint, reports on the government’s promise.

In its quest to find the ideal balance between health measures and economic imperatives, the Luxembourg government decided to increase the minimum social wage by 2.8% as of 1 January, 2021. The cost-of-living allowance, as well as the social inclusion income, are also to be increased.

The bill has been tabled in the Chamber of Deputies and has already received the approval of the Council of State. With this increase, the minimum wage will reach €2,201.93 gross for unskilled workers and €2,642.32 for skilled workers.

According to the government, as of 31 March, 2020, “60,502 employees, or 14.6% of employees (excluding civil servants) present on the labour market were paid in the vicinity of the minimum wage”, or less than €2,184 per month.

Of these 60,502 employees, 33,584 are residents of the Grand Duchy. 24,224 are employed in the commercial and hotel and catering sectors. In the latter, 46% of the employees receive the minimum wage.

 

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