RTL Today - Social safety net: Luxembourg's minimum wage remains the highest in Europe

Luxembourg's minimum wage is the highest in Europe, and may soon climb by another 3.2% once 2023 comes around.

The tripartite agreement reached in September between the government, employers and unions will lead to an increase in Luxembourg's social minimum wage.

If the bill tabled in the Chamber of Deputies this December is agree on by MPs, the number will increase by 3.2% on 1 January 2023, which corresponds with the average increase in salaries between 2019 and 2021.

Set at €2,313.38 and €2,776.05 since 1 April, 2022, the minimum wage would climb as detailed below:

€2,387.40 for the non-qualified minimum social wage (+€74.02 per month)
€2,864.88 for the qualified minimum social wage (+€88.83)
€1,909.92 for young workers aged 17 to 18
€1,790.55 for young workers, aged 15 to 17

According to Eurostat, this once again confirms Luxembourg's place with the highest minimum salary in Europe, ahead of Belgium (€1,842.28) and Ireland (€1,774.50). Germany (€1,744, according to Eurostat) and France (€1,678.95) are slightly lower on the European comparison list.

Who receives the minimum wage in Luxembourg?

With the exception of civil servants, the government estimates that, as of 31 March this year, approximately 9% of employees in Luxembourg received a salary close to the qualified minimum social wage.

6.2% received the non-qualified minimum social wage.

That covers nearly 66,000 people in total, 36,000 of whom are residents of the Grand Duchy. This leaves about 30,000 cross-border workers with a minimum salary.

Roughly 16,300 people work in the commerce sector. The minimum social wage is also the norm in the hospitality sector, where 48.6% of employees are concerned (over 10,000 people). As a comparison, only 2.5% of people working in the finance or insurance business receive the minimum wage.

Raising the minimum wage would cost employers approximately €74.6 million more per year. There are voices of concern, however, that raising the minimum wage further could trigger more inflation and ultimately a higher cost of living.

Despite a higher wage, the poverty rate in Luxembourg has also increased.