Two-fold increase in the minimum wage

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The statutory minimum wage in Luxembourg has been increased by 3.2% from 1 January 1997, as a result of legislation, and additionally by 2.5% from 1 February 1997, under the terms of an index-linked mechanism.

The minimum wage applies to all employees who are covered by a contract of employment in the national territory of the Grand Duchy, regardless of gender. The minimum wage is fixed according to two considerations - age and level of qualification. Employees who are 18 and above are entitled to the full amount, while reduced rates apply to young workers who are under 18. Workers with qualifications are entitled to an enhancement of 20%. This applies to those with a professional qualification acquired by teaching or training which carries an official certificate of a standard at least at the level of the Certificate of Technical and Professional Aptitude (CATP) at secondary technical education level.

Every two years, the Government submits 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. It was this mechanism which led to the law of 7 January 1997, increasing minimum wage rates by 3.2%.

The Grand-Duchy also has a mechanism index-linking the minimum wage to consumer prices, whereby increases of 2.5% in prices trigger an automatic equivalent increase in minimum wage rates. Such an increase was triggered from 1 February 1997, the first time this has occurred since May 1995.

The new monthly rates for unqualified workers are as follows:

The level of the minimum wage for qualified workers is fixed at LUF 55,530 per month as from 1 February 1997.