Luxembourg's Minister of Labour proposes recalculating salaries

Luxembourg is preparing to revise its minimum wage calculation mechanism in line with the European directive. Labour Minister Marc Spautz has stated that he would prefer to use median income rather than average income as the main benchmark for future changes.

In an interview with Paperjam, he explained that this approach seems more appropriate to him when adapting the national system to EU rules. The European directive offers two possible formulas: the minimum wage can correspond to either 50% of the average income or 60% of the median income.

The difference between these indicators is fundamental. Average income is calculated as the arithmetic mean of all salaries, and in countries with a high proportion of highly paid specialists — such as Luxembourg — it is usually significantly higher. Median income, on the other hand, reflects the salary level of the "middle" worker, meaning that half of workers earn more and half earn less. Therefore, using average income would lead to a more significant increase in the minimum wage.

Today, the minimum wage for unskilled workers in the country is around €2,700 per month. According to Paperjam estimates, if based on median income, it could rise to around €2,900–€3,160. If the average wage indicator is applied, the estimated level would reach €3,375.

The issue remains the subject of political and social negotiations. According to Spautz, the decision still needs to be discussed by the government council and social partners. The positions of the parties differ significantly: employers' representatives are opposed to any increase in the minimum wage, while the OGBL trade union is demanding an increase of at least 10%.