Economy & Politics

The increase in the minimum wage put to the vote

Announced in mid-November by the Prime Minister, the process of the contested increase in the social minimum wage has now been launched. If the bill has already received the approval of the Council of State, Wednesday, it will be the turn of the deputies to vote.

Announced in mid-November by the Prime Minister, the process of the contested increase in the social minimum wage has now been launched. If the bill has already received the approval of the Council of State, Wednesday, it will be the turn of the deputies to vote.

(ASdN) – Covid or not, for the government, there is no question of giving up purchasing power. On November 20, Xavier Bettel (DP) announced a 2.8% increase in the minimum social wage as of January 1. Although the measure was strongly contested by employers, the bill will be put to the vote of deputies on Wednesday.


The Chambers of Commerce and Trades did not take offense at the government’s desire to increase the minimum social wage on January 1.


The bill tabled in the Chamber of Deputies has indeed received the approval of the Council of State. With this increase, the minimum wage will reach 2,201.93 euros gross for unskilled workers and 2,642.32 euros for skilled workers. In other words, some 60,500 employees – nearly 14.5% of employees – could then benefit from “an additional sixty euros per month”, from next month, specifies the government on the website of the Chamber.

For many companies, such a hike in the minimum wage is seen as a stab. The total annual additional cost for all Luxembourg companies would be “54.3 million euros”, estimates the government.

The highest in Europe

In order to mitigate this additional cost for companies affected by the health crisis, the government is therefore offering compensation. But for various members of the parliamentary committee, these must remain “an exception” to prevent an “automatic system from being created and leading to the fact that the taxpayer must bear this increase in the minimum wage”.


(FILES) This file photo taken on February 12, 2016 shows several 500 Euro notes displayed in an arrangement. The European Central Bank (ECB) said on May 4 it would no longer produce and issue 500 euro banknotes, amid fears that the purple-colored bills were favored by criminals for money laundering and even terrorist financing. / AFP PHOTO / MIGUEL MEDINA

No more, no less in any case for companies in vulnerable sectors. The government is therefore turning a deaf ear to the demands of the employers who demanded greater and generalized support.


As a reminder, Luxembourg already has the highest social minimum wage in Europe. By way of comparison, it is 1,539.42 euros in France, 1,584 euros in Germany or even 1,625.72 euros in Belgium. In Latvia, it amounts to around 430 euros per month and barely 311 euros in Bulgaria.


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