Luxembourg is preparing for a further increase in wages in 2025, and the unskilled minimum wage will not be the only one to increase. People earning the qualified minimum wage will also see their monthly income increase. Salary prospects could improve further with the indexation planned for next year.
While the government announced a week ago that the unskilled minimum wage will increase by 2.6% from January 1, 2025, the Chamber of Employees explains to Contact that “both (salaries) will be increased by 2.6%”.
With the entry into force of this measure, the value of the minimum wage for low wages will increase from 2,570.93 euros to 2,637.77 euros and that of the qualified minimum wage will increase from 3,085.11 euros to 3,165.35 euros. The monthly increase for unskilled workers will therefore be 66.86 euros and, for qualified workers, 80.24 euros.
As Luxembourg legislation provides that the qualified minimum wage is 20% higher than the unskilled minimum wage, the latter is automatically adjusted.
The LCGB confirms that “the adaptation of the minimum wage concerns both the unskilled and the qualified” and that these increases end up having an impact on various social benefits calculated on the basis of the minimum wage. Thus, social benefits such as unemployment benefit, replacement income during parental leave and unemployment insurance benefits will also “increase”.
For the central union, however, the minimum wage must “continue to be reevaluated, because it remains below the poverty line, despite regular adjustments and indexations”. The LCGB adds that it is also “committed to improving wages through a greater number of collective agreements”.
Wages could increase twice
The monthly salary could also increase again, with the next indexation of salaries and pensions to the cost of living in the Grand Duchy planned for the first quarter of 2025, according to Statec estimates.
“If the minimum wage increases by 2.6% in January and wage indexation is applied in the first quarter, the minimum wage increase in January will be increased by an additional 2.5% due to indexation wages,” explained the National Institute of Statistics of Luxembourg. The unskilled minimum wage could thus increase to 2,703.71 euros and the qualified minimum to 3,244.48 euros.
According to a document from the Chamber of Employees, which analyzes the government bill providing for these salary changes, “between 2022 and 2023, the level of the minimum social wage was increased five times”. During these two years, “the minimum salary of unskilled employees aged 18 and over increased by 313.98 euros (+13.9%), going from 2,256.95 euros in January 2022 to 2,570.93 euros in December 2023,” specifies the document.
This article was originally published on the website Contact.
Adaptation: Antony Speciale
