Amid ongoing debates about pension system reform, the Chamber of Employees is strongly opposing proposed pension cuts, highlighting concerns over the rising risk of poverty among retirees.
As discussions on a potential pension system reform continue, the Chamber of Employees (CSL) reiterated on Thursday its firm stance against any further pension cuts.
The CSL emphasised that the current minimum pension in Luxembourg is "below the poverty line." Since 1 January 2024, the minimum pension for those with a full career has been set at €2,245 gross per month. While this is higher than in neighbouring countries, the CSL argues that it does not adequately reflect Luxembourg's cost of living. "In 2022, anyone with a net income of less than €2,452 per month was considered to be at risk of poverty," the CSL noted, adding that this threshold is likely higher nowadays due to inflation.
A reduction in pensions is among the proposals being considered as part of pension reform discussions. The CSL not only opposes such cuts but advocates for pension increases to "ensure the dignity of our elderly."
According to the CSL, the risk of poverty among pensioners has doubled since the last pension reform in 2012. The organisation estimates that nearly one in four pensioners in Luxembourg earn less than €2,000 gross per month, with 80% of those receiving the minimum pension being women.
The CSL, in collaboration with trade unions, is currently campaigning for a reform that would raise contributions to increase pension amounts. This position stands in direct contrast to proposals put forward by employers' associations and the Chamber of Commerce.
