Together with the General Inspectorate of Social Security (IGSS), the Labour Ministry will adjust the reference values that determine Luxembourg’s minimum wage, Labour Minister Marc Spautz has confirmed to RTL following a meeting with the relevant parliamentary committee. Opposition MPs, however, were disappointed that the minister was unable to provide any indicative figures ahead of negotiations with the social partners.
The Luxembourg Socialist Workers’ Party (LSAP), the Greens, and the Left had placed the minimum wage on the agenda. In November, the EU Court of Justice upheld the EU minimum wage directive, according to which the minimum wage should correspond either to 50% of the average wage or 60% of the median wage.
Accoding to Minister Spautz, the wording ‘should’ does not amount to an obligation, and the directive allows for two reference options: the average or the median. This leaves room for manoeuvre, and the Labour Minister intends to discuss the matter with the social partners. The reference values ultimately chosen would also determine how the adjustment required by the EU directive interacts with the automatic wage indexation, which takes place every two years and comes into effect on 1 January of the following year.
At the next meeting on 24 February – which is officially dedicated to discussions on the platform economy – Marc Spautz wants to try to bring the trade unions and the employers’ association back to the same table. If that proves unsuccessful, he said he would shuttle between the two sides in separate rooms, although he acknowledged that this would clearly be less than ideal.
He added that he had already tested the waters, but pointed to a statement by Nora Back at the end of RTL’s programme on Saturday, in which she said it was still too early for the three parties to sit down together.
The LSAP offered Marc Spautz its support in bringing the trade unions back to the table. During the committee meeting and afterwards, a more amicable tone could clearly be observed between the Red–Red–Green opposition and the new Labour Minister than had been the case under his predecessor, Georges Mischo.
Nevertheless, the LSAP, the Greens and the Left expressed disappointment after the meeting, saying they had expected clearer statements and felt they had been left wanting. The LSAP’s MPs Mars Di Bartolomeo, Claude Haagen, and Georges Engel raised several questions, including whether the minimum pension would be increased and whether the minimum wage should be adjusted annually rather than every two years, in line with pension revaluation. On both points, the minister stopped short of making any commitments.
The LSAP has proposed increasing the minimum wage by €100 in two stages. The Greens are calling for a phased increase of €200, while the Left is proposing an increase of €300. All three opposition parties acknowledge that such measures could prove challenging for businesses and have signalled openness to compensatory measures.
The Left Party MP Marc Baum, however, is opposed to further tax breaks and would instead favour measures such as capping rents for small businesses. He warned that minimum wages are rising in neighbouring countries and that Luxembourg risks becoming less attractive when it comes to securing necessary labour.
The Labour Minister said that a decision on the minimum wage would not be taken by him alone, but by the government as a whole, including the Ministers of Economy and Finance. Democratic Party MP Carole Hartmann also declined to commit to any specific figure, instead pointing to the ongoing discussions with the social partners. Green MP Djuna Bernard, meanwhile, asked what strategy would be pursued to bring the trade unions and the employers’ association together, and therefore proposed a tripartite model.
Under the EU minimum wage directive, EU Member States are also required to draw up an action plan to increase the number of employees covered by collective agreements, with the aim of reaching 80% of employees. Luxembourg currently stands at just over 50%. Marc Spautz said, however, that achieving the 80% target could prove difficult in Luxembourg, as many companies employ fewer than 10 people and because the Big Four account for a large number of employees who are not covered by a collective agreement.
The Labour Minister has confirmed that the ministry will present Luxembourg’s action plan to the European Commission in June 2026.
