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Luxembourg's minimum wage rise unanimously approved

Luxembourg's minimum wage rise unanimously approved

by Susy Teixeira Martins, translated by Adam Walder 19.12.2018 From our online archive
Proposed minimum wage increase for Luxembourg, unanimously approved in parliament
Luxembourg parliament approves minimum wage rise for 2019 Photo: LW archive
Luxembourg parliament approves minimum wage rise for 2019 Photo: LW archive

The increase of the minimum wage in Luxembourg that takes effect on 1 January next year was unanimously approved on Tuesday in parliament.

What that means is a rise of 1.1%, corresponding to about €22 gross more per month.

Thanks to this increase, the minimum wage for unskilled workers will rise to €2,071.07 per month and €2,485.29 for skilled workers.

This is one of three measures announced by the government to increase the minimum wage progressively, with the goal of reaching a total of €100 net more, with retroactive effect to 1 January.

One of these measures involves the creation of the so-called "tax credit", whereby the state and businesses will bear the costs of the remaining amount.

However, SMEs will benefit from a tax relief of 1% to partially help them  cope with the increase in the minimum wage.

The 60 members of parliament also gave the green light yesterday to the 1.1% increase in Social Inclusion Income (REVIS), starting on 1 January 2019.

The provisional state budget for 2019 was approved with a majority vote in favour. MPs from the CSV and the ADR voted against the budget, while Pirate Party and Déi Lénk members abstained.

The so-called 'provisional budget' covers only the next four months. This is a measure put into practice when the state budget is unable to prepare a complete annual budget, and have it adopted, before 1 January.

The reason, in this case, why a complete budget has not been submitted, is due to the short time-frame since the legislative elections that were held in October.

There has not been enough time for the government to prepare a full 12-month budget before 1 January 2019.

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