Increase in the Minimum Wage in Luxembourg
In order to keep pace with inflation, the government has decided to index wages by 2.5% over the coming months in year 2026. In addition, the social minimum wage will increase by 3.8% as from January 1, 2027. This increase is significantly lower than the one initially requested by the trade unions. The government opted for a moderate increase of €170, well below the €300 demanded by the unions. Nevertheless, the current economic situation in Luxembourg must be taken into account, as it does not support a larger increase beyond what has already been planned. With the unemployment rate having reached a historically high level, any further increase could limit job creation. In order to support businesses and ease their financial burden, the State will cover 1.3% of the announced 3.8% increase. The overall cost of this measure is currently difficult to estimate, but it could amount to around €30 million per year.
https://www.lessentiel.lu/fr/story/luxembourg-le-salaire-minimum-va-augmenter-de-170-euros-10353531