A gross monthly minimum pension of €2,350 is simply not enough to ensure a decent standard of living, according to Luxembourg’s Chamber of Employees (CSL).
In a new publication released as part of the ongoing national pension debate, the CSL is once again calling for an increase in the minimum pension. The organisation points out that pensioner poverty has more than doubled in the last decade, now affecting one in ten retirees in the country.
The CSL argues that this is not a matter of luxury or political symbolism, but of basic social fairness. Sylvain Hoffmann, the Chamber’s director, emphasised that the call for action is widely shared. Even some employer representatives have expressed support for raising the lowest pensions, he noted. He added that youth organisations and nearly all political parties have echoed similar concerns in past discussions, recognising the sharp rise in elderly poverty levels in Luxembourg over the past ten years.
An increase in the minimum pension would particularly benefit people who worked in multiple countries throughout their careers, as well as women, who currently make up 80% of those relying on the minimum pension. Raising the amount would also help close the so-called gender pension gap. Hoffmann added that the budgetary impact would be relatively small. A 10% increase, for instance, would cost around €30 million annually.
He pointed out that the cost would be minimal in context, noting that with the National Pension Insurance Fund (CNAP) already allocating around €6.5 billion annually, a 10% increase would represent only a small fraction of that total.
So far, the government has ruled out raising the minimum pension, stating it prefers to address poverty through other means. For the CSL, this position is ‘relatively disappointing’.
