On Wednesday 6 September 2023, Luxembourg's Ministry of Social Security confirmed changes to the minimum wage and other social parameters.
As of 1 September 2023, the application rating of the sliding salary scale increased from 921.40 to 944.43, thus leading to changes to various social parameters. This also resulted in a third wage indexation this year.
The Ministry of Social Security noted that the Luxembourg state will compensate employers for this new wage indexation, as per the tripartite agreement of 7 March 2023. This will be achieved by reducing employer mutuality social contribution rates from January 2024.
In addition, the updated social parameters take into account the retroactive reintroduction from 1 April 2023 of the equivalent tax credit (équivalent crédit d'impôt - ECI) for REVIS (social inclusion income) beneficiaries as well as beneficiaries of the RPGH allowance for people with severe disabilities, in accordance with other provisions of the March 2023 tripartite agreement.
The minimum social wages are now set as follows:
- 18+ years: €14.86 hourly, €2,570.93 monthly;
- 17-18 years: €11.89 hourly, €2,056.74 monthly;
- 15-17 years: €11.15 hourly; €1,928.20 monthly.
The minimum wage for qualified employees is set at €3,085.11 per month (€17.83/hour) from 1 September.
Other social parameters (including pensions) have been adapted following the triggering of the new wage indexation.