The government summarised the results of the meeting with the social partners

An important round of negotiations between the government and the social partners - trade unions, employers and representatives of public organisations - has ended in Luxembourg. The main outcome: it was decided not only not to interfere in the country's social model, but also to strengthen it. The focus is on reforms in the areas of labour, the pension system and trade regulations.

Prime Minister Luc Frieden has confirmed: the course towards the so-called Luxembourg social model will be maintained. This means that key changes will be discussed in partnership with trade unions and employers. To this end, the Standing Committee on Labour and Employment (Comité permanent du travail et de l'emploi, CPTE) will be reactivated.

The government has promised not to introduce bills that would limit the power of trade unions to sign collective agreements. Moreover, the CPTE has been instructed to discuss how the safeguards of all the terms and conditions agreed by the parties under these agreements can be legally strengthened.

The issue of working time organisation will be considered separately: from flexible schedules to overtime. Special attention will be paid to Sunday work in trade. Bill No. 8456 will be supplemented: permission to work on Sundays from 4 to 8 hours will be granted only in the presence of a collective agreement or sectoral agreement - for companies with more than 30 full-time equivalent employees.

One of the most practical items is the changes to shop opening hours (Bill #8472). The main innovation is the possibility to work until 1 a.m. if there is an agreement:

• Monday to Friday: standard - 05:00 to 21:00; extension to 01:00 by arrangement.
• Weekends: extended opening hours from 19:00 to 01:00 on a similar pattern.
• Essential shops may operate 24 hours a day if there is a collective agreement.
• Street fairs and sales are excluded from the standard regulation.

Perhaps the most sensitive issue is pension reform. Although the retirement age (65) is retained, a number of adjustments are being introduced to bring the actual retirement age closer to the legal one:

• Early exit (from age 60): from 2026, progressively more years of contributions will be required - each year 1-2 months more, up to a total allowance of 8 months by 2030.
• Contributions: the rate will increase from 24% to 25.5% as early as 2026.
• Continuing Work Bonus: a tax deduction for those who could have left early but choose to continue working until age 65.
• Flexibility for students: study periods will be able to be flexibly taken into account in pensionable service.
• Social assistance: support for pensioners and widows/widowers with low household incomes will be introduced.
• Fiscal incentives for savings: the tax deduction ceiling for private pension insurance is raised from €3,200 to €4,500 per year.
• Progressive retirement: it will be possible to gradually reduce working hours before retirement, a model already in use in the public sector.
• What doesn't change: the early retirement pension for shift work (préretraite travail posté) and adjustment will remain unchanged.
• Revaluation in 2030: the pension system will be reviewed again.

Against the background of European trends of raising the retirement age and cutting social guarantees, Luxembourg is taking a more moderate path. The authorities seek not to destroy but to "readjust" the system, emphasizing the importance of cooperation and dialogue.

Minimal changes, gradualism, additional incentives and the involvement of all parties are an attempt to maintain social peace and financial sustainability at the same time. In doing so, the country reaffirms its status as one of the most socially stable countries in Europe.