Legislation increased Luxembourg's statutory minimum wage by 3.1% at the beginning of 2001. The rise reflected increases in average real pay in the economy over 1998 and 1999.
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Legislation increased Luxembourg's statutory minimum wage by 3.1% at the beginning of 2001. The rise reflected increases in average real pay in the economy over 1998 and 1999.
Luxembourg's statutory minimum wage (salaire social minimum) applies to all employees in all occupations and in all enterprises, employed by an employer under a contract of employment on Luxembourg's territory. Minimum wage rates are determined on the basis of the employee's age and skills. Every two years, the government is obliged to submit to the Chamber of Deputies a report on developments in the economy and incomes, accompanied, where necessary, by draft legislation raising the level of the minimum wage.
Following a report presented to the Chamber on 8 November 2000, the government proposed raising the minimum wage by 3.1% from 1 January 2001. This increase was based on movements in average real pay during 1998 and 1999.
Employees aged 18 and over qualify for the full minimum wage, which is set at LUF 50,778 (1258.75 EUR) per month from 1 January 2001. Lower rates applicable to workers under the age of 18 have been reviewed in line with the terms of the Council of Europe's European Social Charter. Thus, those aged 17-18 will now receive 90% of the full rate, while those aged 15-17 will qualify for 75%.
Skilled workers are entitled to a minimum wage that is 20% above the minimum rate (ie LUF 60,933 per month) if they perform jobs that require vocational skills normally acquired through education or training leading to an official certificate that is at least at the level of the Technical and Vocational Skills Certificate (CATP) achieved through technical secondary education. There are also opportunities for workers to be assimilated into this category, mainly linked to a given number of years of practical experience in jobs that call for a given level of technical skill.
At present, 35,705 employees (16.2% of the employed workforce) are in receipt of the minimum wage.
Pensions, annuities and the guaranteed minimum income were also raised by 3.1% at the same time as the minimum wage.
Eurofound doporučuje citovat tuto publikaci následujícím způsobem.
Eurofound (2001), Minimum wage increased by 3.1%, article.
