If passed, the new increase is set to come into effect on 1 January 2023, ensuring that Luxembourg’s minimum wage remains the highest in Europe:
However, this increase only manages to catch up to the general increase in wages, which have risen by an average of 3.2% over the last two years. So, by raising the minimum wage by the same amount, the government is trying to prevent an increase in income inequality. At present, nearly 66,000 people earn one of the minimum wages.
Luxembourg’s minimum wage has risen by more than €500 per month over the last ten years. In January 2013, it was set at a gross monthly rate of €1,874.19 for an unskilled worker (+€513.21 today), and a gross monthly rate of €2,249.03 for a skilled worker (+€615.85).
Luxembourg’s economic sector remains divided on this increase. While the Chamber of Employees is pleased, it considers the increase “insufficient in view of the elevated living costs in Luxembourg.”
“The current economic conditions do not justify such an increase”, says the Chambers of Skilled Trades and Crafts, denouncing a “political motivation” that will harm competitiveness and job creation. Even if, for the time being, companies have thousands of unfilled posts and simultaneous difficulty recruiting.
The Chambers of Skilled Trades and Crafts are formally opposed to the bill.
