The minimum wage has recently been at the centre of public debate, with the government ruling out a structural increase. However, due to indexation and other adjustments, it is set to rise by 6.3% on 1 January 2027. In Luxembourg, the organ in charge of making sure companies respect the minimum wage is the Inspectorate of Labour and Mines (ITM). In response to a parliamentary question from Luxembourg Socialist Workers’ Party (LSAP) MP Mars Di Bartolomeo, Labour Minister Marc Spautz outlined how compliance is monitored.
The ITM regularly carries out inspections to check that employees are paid correctly, reviewing documents such as payslips. In 2025, around 1,400 inspections were conducted, resulting in 26 violations, which is a notable decrease compared to 2021, when 85 violations were recorded across 1,100 inspections. Since 2020, a total of 7,888 inspections have been carried out, identifying 336 violations. This means that the minimum wage was not respected in 4.2% of cases.
Most violations occur in the hospitality sector. Of the 26 cases recorded in 2025, 13 were in this sector alone, which has consistently accounted for the highest number of cases in recent years. Other affected sectors include construction, retail and transport, though to a lesser extent.
The ITM prioritises resolving cases quickly to ensure employees receive the wages they are owed. If this is not possible, employers may face fines ranging from €251 to €25,000, although such measures remain relatively rare.
The inspectorate also focuses on prevention through awareness brochures and targeted inspections.
