Legislation increased Luxembourg's statutory minimum wage by 3.5% at the beginning of 2003. The rise reflected increases in average real pay in the economy over 2000 and 2001.
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Legislation increased Luxembourg's statutory minimum wage by 3.5% at the beginning of 2003. The rise reflected increases in average real pay in the economy over 2000 and 2001.
Luxembourg's statutoryminimum 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 in November 2002, the government proposed raising the minimum wage by 3.5% as from 1 January 2003. This increase, which has now been implemented, was based on movements in real pay during 2000 and 2001 (LU0101155N).
Employees aged 18 qualify for the full minimum wage, which has been fixed at EUR 1,368.74 per month from 1 January 2003. Employees aged between 17 and 18 receive 90% of the full rate, and those aged between 15 and 17 receive 75%.
Skilled workers are entitled to a minimum wage that is 20% above the minimum rate (ie EUR 1,642.49 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 (Certificat d'aptitude technique et professionnelle, CATP) achieved through technical secondary education.
At present, 37,020 employees - 15.1% of the employed workforce - are in receipt of the minimum wage. This percentage has fallen slightly from 16.2% in 2001. More men (19,160) than women (17,860) currently receive the minimum wage. This trend has been intensifyng over the past four years and, given that 19.6% of women employees are in receipt of the minimum wage compared with 12.5% of men, this could be a consequence of a shift in the direction of equal pay between the sexes.
Pensions, annuities and the guaranteed minimum income were also increased by 3.5% at the same time as the minimum wage.
Eurofound recommends citing this publication in the following way.
Eurofound (2003), Minimum wage increased by 3.5%, article.
