The Left Party has called for the abolition of the contribution cap in Luxembourg's pension system, arguing that this move could significantly bolster the pension fund annually by hundreds of millions of euros.
Currently, individuals earning at least five times the minimum wage are exempt from paying social contributions on the surplus of their income, a practice the Left Party deems inequitable.
Under the proposed change, the elimination of this contribution cap would result in increased contributions to the pension fund. The Left Party estimates that this adjustment would primarily impact approximately 28,000 individuals with exceptionally high salaries.
Importantly, the party emphasises that while contributions would increase, the pensions disbursed to these individuals should remain capped at the current upper limit.
