An EU directive adopted in October 2022 requires Member States to introduce clear rules governing minimum wages. Like its neighbours, Luxembourg must implement this directive, which is expected to lead to an increase in the minimum wage. Here are three key points on what this could mean for workers.
The 2022 EU directive requires Member States to set minimum wages within a clear framework, ensuring they are “adequate” and provide workers with a “decent standard of living”.
As this cannot be defined uniformly at EU level, the directive leaves it to each country to decide, based on one of the following benchmarks: either 60% of the median gross wage or 50% of the average gross wage. This framework was confirmed by the Court of Justice of the European Union in November.
Both criteria would result in a higher statutory minimum wage than the current level in Luxembourg. However, the distinction between “median wage” and “average wage” is crucial.
Currently, Luxembourg’s unskilled minimum wage stands at €2,703.74 gross per month, while the skilled minimum wage is €3,244.48 gross. Depending on the government’s choice, the minimum wage could increase by between €200 and €460, reaching:
The skilled minimum wage would remain set at 20% above whichever level is chosen.
The Minister of Labour, Marc Spautz, has indicated a personal preference for using the “median wage” as a reference. He also confirmed that the government is currently working on the issue and is expected to announce its decision before Easter.
Despite calls from some organisations to limit the increase in the minimum wage, or even abolish the skilled minimum wage altogether, Spautz stated that such measures are not part of the coalition agreement. He also emphasised that the minimum wage should continue to reflect actual wage developments.
Whatever decision is taken, any increase in the minimum wage will require the drafting, debate, and approval of a bill in parliament.
