Luxembourg's Ministry of Social Security has confirmed changes to pensions, the minimum wage and other social parameters as of 1 April 2023.

Pursuant to Article 3 of the law of 29 June 2022, the monthly minimum wage rate has been adapted to the weighted cost of living index 921.40 (former rating 898.93). This is the application of the wage indexation triggered in June 2022 and postponed to April 2023, in accordance with the aforementioned law transposing certain measures provided for by the tripartite agreement of 31 March 2022.

The minimum social wages are now set as follows:

  • 18+ years: €14.49 hourly, €2,508.24 monthly;
  • 17-18 years: €11.59 hourly, €2,006.59 monthly;
  • 15-17 years: €10.87 hourly; €1,881.18 monthly.

The minimum wage for qualified employees is set at €3,009.88 per month from 1 April 2023.

This has led to the adaptation of several other social parameters following the triggering of the new wage indexation, including family allowances, pensions and health insurance.

Following the end of the energy tax credit (CIE), which expired at the end of March 2023 the payment of Luxembourg pensions for April 2023 will no longer include the CIE. However, Luxembourg pensions will increase by 2.5% from 1 April 2023 by applying the new cost of living index. These two measures give rise to an adjustment of the amount of the Luxembourg pension.

The abolition of the CIE may result in the amount of the Luxembourg pension on 1 April 2023 being lower than the amount received in March 2023. Indeed, the amount corresponding to the application of the new index may be lower than the amount of the CIE, which leads to an adjustment of the monthly amount of the pension paid by the National Pension Insurance Fund (CNAP).

Nevertheless, the ministry recalled that during the last Tripartite Coordination Committee on 3 March 2023, the partners signed a package of measures in order to help households. The committee decided to extend certain measures of the “Solidaritéitspak 2.0” agreement and to introduce another tax credit retroactively to 1 January 2023.