The announcement had been expected in Luxembourg: the minimum wage will indeed increase. The government took its time, partly due to deep disagreement between unions and employers, before ultimately deciding to raise the lowest wages.
The Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB) had been hoping for an increase of almost €300 gross per month, but for now, they have not got what they wanted.
Currently set at €2,703 gross per month for unqualified workers and €3,244 for qualified workers, the minimum wage will be increased in two stages. First, an indexation is expected in the second quarter of 2026, bringing a 2.5% increase that will apply to all wages, civil servants' salaries, and pensions. The minimum wage itself will then be increased by a further 3.8% on 1 January 2027. This will bring it to €2,876 per month for unqualified workers and €3,451 per month for qualified workers.
The rise has prompted debate over whether the minimum wage is enough to live on in Luxembourg. RTL asked people attending the OGBL's recent union gathering at Neumünster Abbey whether the planned increase would make a real difference.
One participant said they did not believe it was possible, while acknowledging that many businesses also found it difficult to pay more. Still, they said living on the minimum wage was far from easy.
Another said it was almost impossible given the cost of living, soaring property prices, and rising rents. They said life was particularly difficult for people on the minimum wage, especially single-parent families, adding that this was a sad reality in a country often ranked among the richest in the world.
A third person said that someone earning €2,500 a month in Luxembourg could not realistically get by. They gave the example of a single mother with two children, who might be forced to live in one room with them because rents are so high. While public transport is free, she noted, almost everything else in Luxembourg is very expensive.
Another participant pointed to rents in Rumelange, near Esch-sur-Alzette, where a two-bedroom flat can cost around €2,100. With a minimum wage, they said, that is impossible to manage.
Several people also highlighted the situation facing young people: One OGBL activist sees more and more young people living abroad, citing the example of her brother, saying many young people either live in shared accommodation or decide to move across the border because they can no longer afford to stay in Luxembourg, even with a salary slightly above the minimum wage.
For one mother of three living in Luxembourg, housing costs account for around 80% of her salary. She said making it to the end of the month was very difficult and that she had sometimes taken temporary jobs to be able to pay her bills.
These are issues raised by union activists, but they are also felt more widely. A young employee interviewed in a shopping centre said rents alone were already around €1,200 to €1,300 at the lower end. Since rent is generally expected not to exceed a third of one's income, she said the minimum wage was clearly not enough.
One activist concluded by saying Luxembourg often presents a false image of itself. Many people in the country earn very little, she said, but they are often forgotten.
She added that the focus is usually on bankers, traders, and wealthy people with company cars, which is the image Luxembourg tends to project. In reality, she said, many people working in shops, banks, canteens, collective catering, cleaning, and other sectors are precisely those who need an increase in the minimum wage.
