Minimum Wage in Luxembourg: Wages and Salary guide

Minimum Wages and Salary in Luxembourg | Minimum Wages in Luxembourg Minimum Salary in Luxembourg to skilled Workers | Minimum Wage in Luxembourg.

 

Minimum Wage in Luxembourg:- Since June 2022, the national minimum wage in Luxembourg has been set at €2,313.4 per month, or 27,761 euros annually when 12 payments are taken into account. As a result, the national minimum wage increased by 2.5%, or 56.4 Euros, from the previous year.

 

Salary and Minimum Wage in Luxembourg: Valid until October 2022, the minimum wage as of April 1, 2022, The sums are in euros, The sums are prior to taxes.

 

Working hours in Luxembourg

Based on a 40-hour workweek, minimum wages are determined.

Employees in Luxembourg typically work 8 hours per day and 40 hours per week. The employer may choose a time frame for comparison in which this working time is used more arbitrarily. In order to do so, the employer must first: or a plan for organizing the work (POT)

 

Minimum wage in Luxembourg Per hour

With a 40-hour workweek as the norm, the following rates can be used to approximate Luxembourg’s minimum wage per hour:

 

The minimum wage in Luxembourg for skilled and unskilled workers

As previously mentioned, Luxembourg law mandates that skilled workers receive a higher minimum wage than unskilled workers.

To be considered skilled, a worker must possess credentials or experience that are on par with one of the following levels:

  • Preliminary certificates and experience: a preliminary certificate in a technical or vocational field and five years of work experience
  • Manual skills and experience: a manual skills certificate, a vocational ability certificate, and two years of relevant work experience
  • Education: a professional license that is accepted in their field. A vocational diploma or a certificate in related fields may be used.
  • Experience: The employee must be able to show proof of 10 years of practical experience if they don’t have a certificate.
  • If no certificate exists: The employee needs to have six years of relevant work experience if the industry lacks pertinent credentials.

 

Luxembourg’s definitions of a skilled worker

In order to be regarded as a skilled worker, the employee must:

either hold a diploma or certificate from a Luxembourg technical secondary school that is at least recognized as being equivalent to a vocational skills certificate (certificat d’aptitude technique et professionnelle, or CATP) for the profession in question; or have proof of at least two years’ worth of experience in the trade in question along with a manual skills certificate (certificat de capacité manuelle-CCM) or a certificate of vocational ability (certificat de capacité professionnelle-CCP);

or holds a preliminary technical and vocational certificate (certificat d’initiation technique et professionnelle – CITP) and evidence of at least five years of practical experience in the trade or profession; or, in the absence of a certificate, provide evidence of at least ten years of practical professional experience (if a certificate is available for the necessary qualification); or provide evidence of at least six years of practical experience in a trade or profession that requires specific technical knowledge.

According to changes in the average wage level, the social minimum wage, pensions, accident pensions, and the GMW (guaranteed minimum wage) may all be adjusted every two years. On the other hand, salaries, wages, and social contributions—including the social minimum wage—are adjusted in line with changes in the cost of living.

 

Collective agreements governing minimum wage in Luxembourg.

Certain industries rely on collective bargaining agreements between employers and employee representatives to determine minimum wages and working conditions.

These agreements frequently exist in sectors with unconventional working procedures. For instance, companies with unusual hours or those that are open round-the-clock.

If a collective bargaining agreement exists for the concerned industry, the minimum wage cannot be less than the federal minimum wage.

 

Luxembourg salary requirements

In Luxembourg, employers are required to pay both men and women the same wage for comparable work, and those with fixed-term contracts must receive the same pay as those with permanent ones. The rules also apply to part-timers, who must receive pro-rata payments at the same rate as full-timers.

In Luxembourg, a standard workweek is only allowed to be 40 hours long; any additional hours require an overtime wage. Although most Luxembourgish employees are covered by this rule, it does not apply to directors, managers, or independent contractors.

The legal maximum working day is 10 hours, and any overtime requires approval from the Ministry of Employment. The government permits some industries to hire workers on Sundays as long as the work is voluntary and compensated at twice the standard wage.

Some employers give their staff a thirteenth month bonus at the end of the year or during the holidays, though this practice is not common across all industries. Others, however, provide a profit-sharing bonus based on the company’s annual performance.

Luxembourg’s highest-paid jobs and average salaries

Only 4% of Luxembourg workers, according to a report from the OECD Better Life Initiative published in November 2017, put in extremely long hours. However, there were distinctions between the working environments for men and women. Despite having a 10% lower unemployment rate than men, women were more than twice as likely to work in low-paying jobs.

 

The average salary in Luxembourg

The median salaries for popular jobs are as follows, according to information from the survey website Pay Scale, with the average annual salary in Luxembourg being €59,923:

 

The highest-paid jobs in Luxembourg

According to Statec, the statistical office of Luxembourg, those who work in the financial and insurance sectors make the most money, followed by those who produce electricity, scientists and engineers, IT specialists, and teachers. The sectors of lodging and food were, however, those with the lowest wages in Luxembourg.

The OECD report also revealed secondary school teacher salaries began at €73,700, placing Luxembourg at the top of the earnings list across major developed countries, despite not being the highest paid position in the nation.

 

Sources

The minimum monthly wage rate is set at 256.60 euros retroactively to January 1, 2019, in accordance with the law of July 12, 2019, amending Article L. 222-9 of the Labor Code.

 

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