Lawmakers pass pension and Sunday shop hour reforms

Parliament has passed a set of contentious bills to revamp the pension system and reform shop opening hours.

Starting on 1 January 2026, retailers with less than 30 employees can have staff work up to eight hours on Sundays, up from the current four hours. “This measure covers 90% of retail companies and about 35% of staff in the sector,” the Chamber of Deputies said on its website after the legislation passed on Thursday.

Larger retailers will need to sign a collective work agreement or strike a deal with trade unions if they want to operate for more than four hours on Sundays, except for special sales days.

Marc Spautz, who was named labour minister (CSV) on 11 December 2025, seen in a library picture, argued for final passage of the Sunday working hours bill in the Chamber of Deputies on Thursday © Photo credit: Gerry Huberty

Larger retailers will need to sign a collective work agreement or strike a deal with trade unions if they want to operate for more than four hours on Sundays, except for special sales days.

Opposition parties had wanted a lower threshold for the number of staff that would force a specific agreement, but the measures were passed by 34 of the governing coalition’s 35 MPs, with 16 MPs voting against and 9 abstaining.

Charel Weiler, the CSV MP who served as rapporteur for the bill, was quoted by the Luxemburger Wort as saying the legislation did not intend to “abolish Sunday as an important social and family day that still holds great significance for many people.”

But Georges Engel, an MP with the opposition LSAP and a former labour minister, called “the liberalisation of Sunday work, enshrined directly in law and only partially regulated by a collective agreement [is] not just unacceptable. It is dangerous.”

The law will also extend trading hours, allowing retailers to be open Monday to Friday from 05:00 to 21:00 without specific authorisation. The current rules are 06:00 to 20:00.

On weekends, shops will be able to operate from 05:00 to 19:00, instead of 06:00 to 19:00 on Saturdays and 06:00 to 13:00 on Sundays under present regulations.

Under the new system, stores can reach a collective work agreement or trade union accord to remain open until 01:00. Certain types of retail outlets, such as food shops and petrol stations, can operate 24 hours a day.

Pension reform

Under the controversial pension reform, also passed on Thursday, workers would need to contribute into the retirement system longer to receive a full pension, with the increases implemented in stages between 2026 and 2030. Future retirees will need to work an extra month starting in July 2026, ratcheting up to eight months in 2030.

The current contribution rate of 24% – split three ways between employees, employees and the state at 8% each – will rise to 25.5% starting in 2026.

The measure also introduced a tax exemption of €750 per month for an annual total of €9,000 on income earned after the official retirement age of 65. In addition, the tax allowance for private retirement savings plans increased from €3,200 to €4,500 a year.

The legislation was also carried by MPs from the government benches.

The reform has simultaneously dented the government’s popularity with voters while business lobbyists have said it “fixed nothing”.

(With reporting by Thomas Berthol at the Luxemburger Wort.)