The EU is currently working on a minimum wage directive with the ambition of creating a level of consistency in the Union. Every member state should therefore update its minimum wage on a two-year basis. Furthermore, 80% or work contracts should be collective contracts.
MPs from the Left thus requested a debate in the Chamber to address a potential raising of the minimum wage in Luxembourg. According to the EU directive, a salary is considered fair if it represents 50% of the average income and 60% of the median income.
According to MP Myriam Cecchetti from the Left, this is not the case in the Grand Duchy: “We need to raise the minimum wage by 150% if we want to adjust it to 60% of the median income. If we want to adjust it to 50% of the average income, then it will be an additional €350, for which we want to advocate.”
Minister of Labour, Employment and the Social and Solidarity Economy Georges Engel acknowledged that there is room for improvement in Luxembourg. Although he also admitted that he wants to increase the number of collective contracts, the politician from the Luxembourg Socialist Workers’ Party (LSAP) was unwilling to respond to the idea of raising the minimum wage.
However, Minister Engel’s predecessor and now MP Dan Kersch addressed the issue and confirmed that LSAP is open to discuss a raising of the minimum wage. He further drew attention to the fact that it may not be done in this legislative period, but that parties are free to present their ideas on their election platforms. MP Kersch further proposed to introduce tax advantages for businesses that switch to collective contracts.
MP Marc Spautz from the Christian Social People’s Party (CSV) warned that since Germany raised its minimum wage, Luxembourg has become less attractive. MPs from the Pirate Party also expressed concern over this tendency.
Minister Engel promised to keep monitoring the situation and introduce measures once needed.
