Key Points
- Minimum salary levels have increased by 2.8% nationwide for certain workers
- The new wage levels affect non-graduate workers and most qualified workers
- EU Blue Card applications are subject to a different threshold
- All existing, new, and pending applications as of January 1, 2021 must comply
- EU ICT Permit holders must be paid at the same rate as a local worker in the same position if that wage is higher
- Some benefits and allowances count towards the minimum wage levels
- Employees must be compensated in EUR
Overview
On January 1, 2021, minimum salary levels increased in Luxembourg for certain workers.
What are the Changes?
Nationwide, Luxembourg's minimum wages increased by 2.8% for affected categories.
Who is Affected?
The minimum wages apply to non-graduate workers and other qualified workers.
For non-graduate workers, including Work Permit for Salaries Workers applicants, the new minimum wage is EUR 2,201.93 gross per month.
The minimum wage for qualified workers is now EUR 2,642.32 gross per month. The minimum wage increase applies to EU/EEA and Swiss nationals, along with EU Intracompany Transferee (ICT) Permit applicants and graduate applicants for a Work Permit for Salaried Workers.
A separate threshold applies to EU Blue Card applicants.
What Should Employers and Applicants Know?
The minimum salary requirements apply to existing permit holders along with new and pending applications as of January 1, 2021. Additionally, EU ICT Permit holders must be compensated at the same rate as a local worker in the same position if that wage is higher.
Benefits and allowances may count toward the minimum wage if they are specified in the employment contract or assignment letter, processed through a payroll, not paid in kind, paid at regular intervals during the employee's assignment, and fixed and guaranteed. Performance-based bonuses do not qualify.
Employers must pay their workers in EUR regardless of exchange rate fluctuations and payroll location.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.