MPs from all parties voted unanimously to raise minimum wage, social inclusion income, and income for people with severe disabilities by 2,8% across the board.
The Minister of Family and Integration, Corinne Cahen, addressed parliament on Wednesday, saying the poorest households were the most vulnerable during a crisis. She added that increasing wages would give people more spending power, which could benefit small businesses.
As of 1 January 2021, the minimum wage will rise from €2,141.99 to €2,201.93 gross per month for unqualified employees, representing a €60 increase.
Qualified or skilled workers will see an increase of around €72 per month, as the minimum wage rises from €2,570.39 to €2,642.32.
The increase will affect around 15% of the workforce. Of the 60,500 people earning a salary close to minimum wage, around 33,600 live in Luxembourg, while 26,900 are cross-border workers. The figure includes almost 3,000 civil servants.
The increase will result in 54.3 million euros of additional costs for employers, but government aid will offset the increase from 1 January.
Parliament is working on bill 7718 which concerns the financial aid for businesses. The figure is calculated by multiplying the number of employees active between 1 January and 30 June 2021 by €500. The state boost will be spread over a six month period.
