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LUXEMBOURG – 2017 Minimum Wage Increase

The Luxembourg government has increased the social minimum wage to €1998.59 from 1 January 2017 (up from €1922.96 in 2015 and 2016).

Skilled Workers

The minimum wage for skilled workers is 20% higher than that for unskilled workers, or €2398.30 from 1 January 2017 (up from €2307.56 in 2015 and 2016).

Background

This year’s minimum wage rise is the result of two separate adjustments:

  • The social minimum wage in Luxembourg may be adjusted every two years. The law of 15 December 2016 amending article L.222-9 of the Labour Code was published on the 21 December 2016 in the official journal (“Mémorial”) no.265, raising the minimum wage by 1.4% from 1 January 2017.
  • Also effective 1 January 2017, the consumer price (cost of living) index in Luxembourg has been adjusted, obliging employers to increase salaries by 2.5%.

Action Items

  • Employers in Luxembourg should review the salaries of any current and future employees.

This news alert was prepared using information provided by Osch & Arendt.

DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.