Social minimum wage and indexation of salaries
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In the framework of a working relationship, the salary is a direct compensation for the work carried out by the employee for their employer. It may consist of different elements in cash or in kind.
As a general rule, the salary is freely determined by the 2 parties when the employment contract is concluded.
Nevertheless, employers must respect the applicable social minimum wage according to the employee's qualifications.
Salaries may be affected by 2 types of adjustment:
- an increase in the social minimum wage;
- wage indexation.
Who is concerned
In general, the level of salary and pay adjustments are freely negotiated between:
- the employer, who must nevertheless respect the applicable social minimum wage according to the employee's qualifications; and
- the employee, who, depending on their experience and training, will be considered a skilled or unskilled worker.
Posted work: employers who post their workers to another EU country must ensure that said employees are paid at least the social minimum wage in the country where they will temporarily carry out their work.
Prerequisites
The applicable minimum wage depends on the employee's level of professional qualification.
To be considered a skilled worker, the employee must:
either have, for the profession concerned, a recognised official certificate at least equivalent to a vocational skills certificate (certificat d'aptitude technique et professionnelle - CATP) or a vocational aptitude diploma (diplôme d'aptitude professionnelle - DAP) from a Luxembourg technical secondary school;
or have a manual skills certificate (certificat de capacité manuelle - CCM) or a vocational capacity certificate (certificat de capacité professionnelle - CCP) and proof of at least 2 years' experience in the trade in question;
or have a preliminary technical and vocational certificate (certificat d'initiation technique et professionnelle - CITP) and proof of at least 5 years' practical experience in the trade or profession;
or, if they do not have a qualification, provide proof of at least 10 years' practical professional experience (if a certificate exists for the required qualification);
or provide proof of at least 6 years' practical experience in a trade or profession which requires certain technical skills and where no official certificate is issued after vocational training.
If a collective agreement exists, the applicable salary and pay adjustments are established by the salary scale set out in this agreement according to the position and required qualifications.
The employer must in theory be informed of the worker's qualification at the time the worker is hired.
It is only after the worker has provided their qualifications to the employer that they can request the social minimum wage for skilled workers. It is up to the worker to provide sufficient proof of their qualifications in order to obtain the status as a skilled worker (through diplomas or professional work experience).
Preliminary steps
The employer must also ensure equal treatment within the business, i.e.:
- equal pay for men and women for the same work or for work of equal value; and
- equal pay for employees on a fixed-term employment contract (CDD) and employees on a permanent employment contract (CDI). The same applies, proportionally, for part-time and full-time employees.
Examples:
- an employment contract or a collective agreement may not provide for lower pay for women than for men if they carry out a job of equal value;
- an employment contract or a collective agreement may not provide for lower pay for employees on a fixed-term employment contract, when they carry out a job of equal value to an employee on a permanent employment contract.
How to proceed
Social minimum wage
The salary may not be below the social minimum wage under any circumstances.
The applicable social minimum wage is:
- increased by 20 % for a skilled worker;
- decreased by 20 % to 25 % in the case of an adolescent worker.
The applicable social minimum wage amounts are listed in our specific information page in the section 'Minimum and maximum limits subject to contributions'.
Adjustment of the minimum social benefits
The social minimum wage, pensions, accident pension and the REVIS (social inclusion income) may be adjusted according to the evolution of the average wage level.
When average wage levels rise in relation to the social minimum wage, the level of the social minimum wage may be adjusted to cover this difference either partially or totally.
The laws amending the labour law with the aim of adjusting the social minimum wage are published in the Mémorial A.
The employer must, where applicable, increase the wages of employees receiving the social minimum wage up to the new rate.
Indexation of salaries
Salaries, wages and social contributions (including the social minimum wage) are, on the other hand, adjusted in line with the evolution of the cost of living.
When the consumer price index increases or decreases by 2.5 % during the previous semester, salaries are normally adjusted by the same proportion.
The consumer price index and its impact on the sliding wage scale are published monthly by the National Institute for Statistics and Economic Studies (Institut national de la statistique et des études économiques - Statec).
The employer must, where applicable, increase all wages by 2.5 %.
For posted workers in Luxembourg, the indexation only applies to the minimum wage and not to higher wages.
Who to contact
-
Inspectorate of Labour and Mines (ITM)
- Address:
-
3, rue des Primeurs
L-2361
Strassen
Luxembourg
B.P. 27, L-2010 Luxembourg
- Phone:
- (+352) 247 76 100
- Fax:
- (+352) 247 96 100
- Email address:
- contact@itm.etat.lu
- Website:
- http://www.itm.lu/home.html
Closed ⋅ Opens Monday at 8.30
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8.30 to 12.00 , 13.30 to 16.30
- Tuesday:
- 8.30 to 12.00 , 13.30 to 16.30
- Wednesday:
- 8.30 to 12.00 , 13.30 to 16.30
- Thursday:
- 8.30 to 12.00 , 13.30 to 16.30
- Friday:
- 8.30 to 12.00 , 13.30 to 16.30
-
Inspectorate of Labour and Mines (ITM) Regional Office Diekirch
- Address:
-
2, rue Clairefontaine
L-9220
Diekirch
B.P. 27, L-2010 Luxembourg
- Phone:
- (+352) 247 76 100
- Fax:
- (+352) 247 96 100
Closed ⋅ Opens Monday à 8h30
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8h30 à 11h30, 14h00 à 17h00
- Tuesday:
- 8h30 à 11h30, 14h00 à 17h00
- Wednesday:
- Closed
- Thursday:
- 8h30 à 11h30, 14h00 à 17h00
- Friday:
- 8h30 à 11h30, 14h00 à 17h00
-
Inspectorate of Labour and Mines (ITM) Regional Office Esch-sur-Alzette
- Address:
-
1, boulevard de la Porte de France
L-4360
Esch-sur-Alzette
B.P. 27, L-2010 Luxembourg
- Phone:
- (+352) 247 76 100
- Fax:
- (+352) 247 96 100
Closed ⋅ Opens Monday à 8h30
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8h30 à 11h30, 14h00 à 17h00
- Tuesday:
- 8h30 à 11h30, 14h00 à 17h00
- Wednesday:
- 8h30 à 11h30, 14h00 à 17h00
- Thursday:
- 8h30 à 11h30, 14h00 à 17h00
- Friday:
- 8h30 à 11h30, 14h00 à 17h00
-
Inspectorate of Labour and Mines (ITM) Regional Office Strassen
- Address:
-
3, rue des Primeurs
L-2361
Strassen
B.P. 27, L-2010 Luxembourg
- Phone:
- (+352) 247 76 100
- Fax:
- (+352) 247 96 100
Closed ⋅ Opens Monday à 8h30
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8h30 à 11h30, 14h00 à 17h00
- Tuesday:
- 8h30 à 11h30, 14h00 à 17h00
- Wednesday:
- 8h30 à 11h30, 14h00 à 17h00
- Thursday:
- 8h30 à 11h30, 14h00 à 17h00
- Friday:
- 8h30 à 11h30, 14h00 à 17h00
-
Inspectorate of Labour and Mines (ITM) Regional Office Wiltz
- Address:
-
20, route de Winseler
L-9577
Wiltz
B.P. 27, L-2010 Luxembourg
- Phone:
- (+352) 247 76 100
- Fax:
- (+352) 247 96 100
Closed ⋅ Opens Wednesday à 8h30
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- Closed
- Tuesday:
- Closed
- Wednesday:
- 8h30 à 11h30, 14h00 à 17h00
- Thursday:
- Closed
- Friday:
- Closed
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Related procedures and links
Links
Tools
Consult the current social parameters.
Further information
sur le site de l'Inspection du travail et des mines (ITM)
Legal references
- Code du travail, Livre II, Titre II, Chapitre I
- Code du travail, Livre II, Titre IV, Chapitre I
-
Loi du 31 janvier 2012
adaptant certaines modalités d'application de l'échelle mobile des salaires et traitements
