How life will change in Luxembourg in 2025

Increase in the minimum wage

From 1 January 2025, the minimum wage for unskilled workers will increase by 2.6%, rising from €2,570.93 to €2,637.77. This increase reflects the increase in average wages in 2022 and 2023. At the same time, social benefits such as Revis and RPGH will be increased to support the most vulnerable.

Fiscal reform: affordable housing and increased purchasing power

The government is planning reforms to increase housing affordability and improve the purchasing power of citizens. Tax incentives are expected to be introduced for property owners who rent out housing at affordable prices, as well as incentivising the construction of social housing. These measures are aimed at alleviating the housing crisis and supporting low- and middle-income families.

Offall- a Ressourcëpak package of laws

From 2025, a package of laws aimed at preventing and reducing waste generation and promoting the principles of a circular economy will come into force. The focus is on reducing the use of disposable items and promoting reusable products, which also contributes to reducing greenhouse gas emissions.

Changes in VAT from 1 January 2025

Luxembourg will see changes in value added tax (VAT) rates from the beginning of 2025. The Standard VAT rate will be reduced from 17% to 16%, the intermediate rate from 14% to 13%, and the reduced rate from 8% to 7%. These changes are aimed at supporting consumers and stimulating economic activity.

Availability of products and services

From 28 June 2025, new requirements to ensure that certain products and services are accessible to older people and people with disabilities will come into force. This includes obligations to adapt ATMs, e-services and online commerce to enable more citizens to participate fully in public life.