According to the study, nearly half of workers under the age of 25 in Luxembourg are paid the minimum wage. Drawing from data collected in March 2022 by the General Inspectorate of Social Security, the Chamber of Employees highlights that 44.8% of young workers fall into this category. For full-time employment, these individuals receive either €2,256.95 gross (unskilled SMW) or €2,708.35 gross (skilled SMW).
The prevalence of minimum wage employment decreases with age:
The least experienced employees are over-represented among the lowest paid in the country. For instance, workers with less than six months experience constitute only 4% of the workforce but make up 34.2% of those earning the minimum wage.
The study also suggests a positive correlation between hours worked and wage levels. Workers who have been employed in Luxembourg for longer durations are less likely to receive the legal minimum wage.
Despite these observations, the Chamber of Employees emphasises that professional experience does not consistently translate into higher salaries:
In essence, while age and experience may contribute to earning a salary above the social minimum, they do not guarantee it. The Chamber of Employees previously compared the wage progression of workers over a decade, from 2011 to 2021, finding that one in four individuals earning the social minimum wage in 2011 remained in that bracket a decade later. This underscores an incomplete wage progression in Luxembourg.
