Luxembourg's minimum wage rise unanimously approved
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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