03/01/23

Luxembourg minimum social wage increase from 1 January 2023

The 3.2% increase in the minimum social wage became official on 1 January 2023.

In our Newsflash of 1 December 2022, we reported on the upcoming introduction of bills of law aimed at improving the standard of living of the most vulnerable, given the current economic context. Bill of law referenced 8117, amending Article L.222-9 of the Labour Code and adapting minimum social wage rates to the evolution of the average wage during 2020 and 2021, was submitted to Parliament on 12 December 2022 and has been published in the Mémorial A n°691 (Official Journal). The law of 23 December 2022 came into force yesterday, 1 January 2023. It upgrades the minimum social wage, increasing it by 3.2%.

A further increase in salaries entering into force shortly cannot be ruled out as an increase in the index is likely in the early part of the year, in light of the STATEC[1] figures for inflation.

[1] National Institute of Statistics and Economic Studies of the Grand Duchy of Luxembourg (Institut national de la statistique et des études économiques du Grand-Duché de Luxembourg). 

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