Luxembourg - Agreement on minimum wage - June 30, 2026

Government calculations show that unskilled workers on the minimum wage stand to gain just over € 200 a month in net salary by July 2027, as part of the agreed tripartite package. The tripartite agreement between the Government and the social partners includes several measures for workers. A net salary increase of € 203.50 per month is what the Government is promising workers on the minimum wage for unskilled workers. The change in take-home pay will be phased in gradually. It will first depend on the indexation and temporary tax credit introduced in June 2026, then on the rise in the minimum wage and the adjustment of tax brackets scheduled for 1 January 2027, and finally on the increase in the social minimum wage tax credit, which will take effect in two stages, in January and July 2027.

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