Increase of the Minimum Wage

On June 25, 2019, the draft law no. 7416 amending Article L. 222-9 of the Labor Code and increasing the minimum social wage by 0.9%, was passed by the Chamber of Deputies.

The expected new legal provisions entail that the minimum wage for unskilled workers will rise from 2,071.10 EUR gross (index 814.40) to 2,089.75 EUR gross (index 814.40). This 0.9% increase will apply retroactively to January 1, 2019.

Employers will carry about one-third of the costs of such measures, while the remaining two thirds will be paid by the Luxembourg state through the predicted minimum wage tax-credit system.

As the minimum wage tax-credit and the 0.9% increase in the minimum social wage both apply retroactively to January 1, 2019, nearly 60,000 employees in Luxembourg will receive an additional net amount of around 600 EUR with their July 2019 salary.