On 1 January 2023, a new law entered into force in Luxembourg, increasing the minimum social wage by 3.2%. The new law, amending Article L. 222-9 of the Labour Code, is part of the measures from the Tripartite Anti-Inflation agreement of 20 September 2022.
As a result, from 1 January 2023, the gross monthly wage for qualified workers rose from 2,776.05 Euros to 2,864.88 Euros. The second indexation of the minimum wage is expected on 1 April 2023, with it, for the first time ever, being previsioned to be higher than 3,000.00 Euros. This development cements Luxembourg’s position as the country with the highest minimum wages in Europe.
The new measures need to be assessed in light of Directive (EU) 2022/2041 of 19 October 2022 on adequate minimum wages in the European Union, whose objective to promote adequate minimum wages within the European Union, taking into account « both wage distributions, productivity, the economy in general and the level of purchasing power in the various Member States ». In order to effectively improve the working condition of workers, the Directive requires for Member States to update the statutory minimum wage every two years (or at the latest every four years for countries like Luxembourg which use an automatic indexation mechanism). It has to be noted that the deadline for the implementation of the Directive is 15 November 2024.