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On Tuesday 24 March 2026, Luxembourg’s Ministry of Labour, together with the Ministry of Health and Social Security, provided clarifications on the methodology used to assess the social minimum wage.

The clarifications followed meetings with social partners and aimed to address ongoing disagreements and to continue discussions on this key issue.

The ministries noted that bilateral discussions did not lead to a common understanding of the analytical elements, with differences remaining in particular on the parameters used to calculate the gross median wage.

The government reaffirmed its commitment to constructive and transparent social dialogue, stating that the issue should be addressed based on objective elements and a clear methodology.

Referring to the European directive on adequate minimum wages, the government highlighted an analysis by the General Inspectorate of Social Security (IGSS), presented in Methodological Report No 7. This analysis indicates that the most relevant benchmark is set at 60% of the median wage to assess whether the social minimum wage ensures an adequate standard of living.

The indicator, published by Eurostat since 2016, is based on an official European Commission methodology and focuses on base wages, excluding bonuses and other additional payments, in line with the definition of the social minimum wage, which itself constitutes a base wage, stated ministries.

Therefore, ministries stressed that the methodology used by the IGSS has remained unchanged for more than ten years and has not been modified recently. It added that the data used relies on official Eurostat figures calculated from the administrative data.

In addition, the government recalled that automatic indexation applies to the social minimum wage in the same way as to all wages. At the same time, the adjustment of the social minimum wage is based on a biennial legislative update, based on the general evolution of wages and economic conditions.

The government confirmed that it will continue discussions with social partners in the coming days to seek progress on the matter.