New level of social minimum in Luxembourg from 2025

The Luxembourg Ministry of Labour has approved a revision of the minimum wage based on the consumer price index (944.43 points). This revision is being carried out in accordance with article L. 223-1 of the Labour Code and will enter into force on 1 January 2025.

Starting from the new year, the minimum wage will be as follows:

• For employees over 18 years of age: €2,637.79 per month (€15.2473 per hour).
• For workers aged 17 to 18: €2,110.23 per month (€12.1979 per hour).
• For employees between 15 and 17 years of age: €1,978.34 per month (€11.4355 per hour).

For qualified employees whose profession fulfils the criteria of Article L. 222-4 of the Labour Code, the social minimum is set at €3,165.35 per month.

The revision of the minimum wage reflects the rising cost of living and the desire to maintain the real purchasing power of the population. Luxembourg's wage indexation system is linked to changes in consumer prices to minimise the impact of inflation on incomes. In this case, the recalculation was based on a revision of the base level (€279.30 at index 100), which was part of the automatic adjustment.

For younger workers, the change is also noticeable: moving to higher rates with age encourages young people to participate in the labour force and promotes social support in the early stages of their careers. At the same time, special attention is paid to skilled labour, who receive a significant increase compared to unskilled workers.

The issue of social indexation remains one of the key topics in Luxembourg's labour relations. Updating social minimums will inevitably have an impact on company budgets, but is also an important step to combat economic inequality and maintain social stability in the country.