Luxembourg’s pension reform could come into force on 1 January after MPs approved the legislation in a marathon sitting, passing it by 34 votes to 25. Debate in parliament echoed arguments heard for months. The governing CSV-DP majority defended its consultation process and said it had opted for measures designed to stabilise the pension system in the medium term, pointing to strong public signals during summer protests.
Opposition parties criticised the government for forcing the reform through and for pitting generations against one another. Some speakers also argued the package did not go far enough to match the scale of the pension system’s challenges.
Unions meanwhile made a final show of force outside parliament to underline their opposition to the reform.
Under the reform, the effective legal retirement age of 65 is set to be approached from next year. Access to early retirement at 60 would tighten, with the required contribution period increasing progressively by eight months by 2030.
The bill also raises pension contributions by 0.5% each for the state, employers, employees, and introduces incentives to keep people in work voluntarily for longer. Those who choose to continue working could receive a tax allowance worth up to €750 euros per month, or €9,000 per year.
