Minimum wage earners in Luxembourg will see their pay rise by 3.8% from 1 January 2027, with additional indexation measures set to increase monthly incomes by around €170, the government announced on Friday.
Following the a cabinet meeting, Labour Minister Marc Spautz (CSV) and Economy Minister Lex Delles (DP) presented the decision at a press conference convened at short notice.
Under the agreement, employers will be required to cover a 2.5% increase, while the state will compensate for the remaining 1.3%.
According to Delles, the exact mechanism for this compensation is still being discussed with the employers’ organisation UEL. The overall fiscal impact has yet to be determined, but Delles estimated that the measure will cost the state between €30 million and €50 million annually. He also noted that a tripartite agreement could still be reached if current geopolitical uncertainties persist.
Separately, an additional 2.5% index-linked wage adjustment is expected to take effect before the summer. Combined with the minimum wage increase, this will result in an estimated €170 monthly gain for minimum wage earners.
More details to follow shortly.
(This article was first published by the Luxemburger Wort. AI translated with editing by Lucrezia Reale.)