January 2017 - Luxembourg Employment News

Increase of the minimum wage and new salary index as of 1 January 2017

Every two years, the Government is obliged to submit to the Chamber of Deputies a report on the development of general economic conditions and revenues pursuant to article L.222-2 of the Labour Code. On the basis of this report, the Government may propose an increase of the minimum wage which it did as per draft bill 7085. 

In this respect, the Chamber of Deputies subsequently adopted on the 15 December 2016 the law amending article L.222-9 of the Labour Code, which raises the minimum wage by 1.4%. The law of 15 December 2016 amending article L.222-9 of the Labour Code was published on the 21 December 2016 in the official journal (“Mémorial”) no.265. The increase of the minimum wage takes effect as of January 1st 2017.  

However, as of 1 January 2017, the consumer price index has as well been adapted. Hence, the new salary index is 794,54 (against previously 775,17) and therefore entails a salary adaptation of all salaries, including of the minimum wage as aforementioned who will thus be raised by 3.9% in total, on the basis of salary indexation.

Pursuant to the salary indexation, the minimum monthly wage will thus be set henceforth at 1,998.59 € (index 794.54) for unskilled employees and at 2,392.19 € (794.54) for skilled employees.