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29.8 Luxembourg Minimum Wage and Labor Law Considerations

Understanding Minimum Wage​

Luxembourg has a guaranteed minimum wage that applies to all employees. Employers must ensure that all employees receive at least the minimum wage, adjusted for age and qualifications.

Minimum Wage Rates​

Standard Minimum Wage​

Adult Minimum Wage (as of 2025):

  • €2,570.93 per month (for unskilled workers)
  • €3,085.12 per month (for skilled workers)
  • Adjusted annually based on inflation

Age-Adjusted Minimum Wage​

Youth Minimum Wage:

  • 17-18 years: 80% of adult minimum wage
  • 15-17 years: 75% of adult minimum wage

Example:

  • Adult minimum wage: €2,570.93
  • 17-year-old minimum wage: €2,570.93 × 80% = €2,056.74

Skilled vs. Unskilled Workers​

Skilled Worker Definition​

Skilled Worker:

  • Has completed recognized vocational training
  • Has professional qualification
  • Has minimum 2 years of experience in field
  • Meets other qualification criteria

Skilled Worker Minimum Wage:

  • 20% higher than unskilled minimum wage
  • €3,085.12 per month (as of 2025)

Unskilled Worker​

Unskilled Worker:

  • Does not meet skilled worker criteria
  • €2,570.93 per month (as of 2025)

Working Hours and Overtime​

Standard Working Hours​

Standard Workweek:

  • 40 hours per week (standard)
  • 8 hours per day (standard)
  • Maximum 10 hours per day (with conditions)
  • Maximum 48 hours per week (with conditions)

Overtime Rules​

Overtime Pay:

  • First 2 hours: 150% of regular rate
  • After 2 hours: 200% of regular rate
  • Sunday/holiday work: 200% of regular rate
  • Night work: Additional premiums may apply

Vacation and Holidays​

Vacation Entitlement:

  • 25 working days per year (minimum)
  • Additional days for seniority (up to 2 additional days)
  • Vacation pay: Regular salary during vacation
  • Must be taken within calendar year (with exceptions)

Public Holidays​

Public Holidays:

  • Luxembourg has 11 public holidays
  • Employees entitled to paid public holidays
  • If worked, double pay typically applies
  • Public holidays: New Year, Easter Monday, Labor Day, Ascension, Whit Monday, National Day, Assumption, All Saints, Christmas, Boxing Day, plus one variable

Employment Contracts​

Written Contracts​

Contract Requirements:

  • Written employment contract required
  • Must include: Salary, working hours, job description, start date
  • Must comply with labor law requirements
  • Must be provided within specified time

Contract Types​

Types:

  • Permanent contract (CDI): Indefinite term
  • Fixed-term contract (CDD): Specific duration
  • Part-time contract: Reduced hours
  • Temporary contract: For specific projects

Termination and Notice Periods​

Notice Periods​

Notice Requirements:

  • Minimum notice periods based on service length
  • 0-5 years: 2 months notice
  • 5-10 years: 4 months notice
  • 10+ years: 6 months notice

Termination Protection​

Protection:

  • Unfair dismissal protection
  • Required procedures for termination
  • Potential compensation for unfair dismissal

Luxembourg Compliance Note​

Critical Requirements:

  • Minimum wage: Must pay at least minimum wage
  • Working hours: Comply with working hour limits
  • Overtime: Pay correct overtime rates
  • Vacation: Provide minimum vacation entitlement
  • Public holidays: Comply with public holiday requirements
  • Contracts: Provide written employment contracts
  • Termination: Follow proper termination procedures

Common Issues:

  • Below minimum wage: Paying below minimum wage
  • Overtime violations: Not paying correct overtime rates
  • Vacation violations: Not providing required vacation
  • Contract issues: Not providing proper contracts
  • Termination issues: Not following proper procedures

Think It Through​

Artisan Boulangerie wants to hire a 17-year-old apprentice baker. What is the minimum wage they must pay? What other labor law considerations apply?

Concepts in Practice​

Minimum Wage and Labor Law Compliance

TechLux Solutions employment practices:

Employee 1: Skilled Software Developer

  • Age: 28
  • Qualification: University degree + 5 years experience
  • Minimum wage: €3,085.12/month (skilled)
  • Actual salary: €4,500/month (above minimum) ✅

Employee 2: Unskilled Office Assistant

  • Age: 22
  • Qualification: High school diploma only
  • Minimum wage: €2,570.93/month (unskilled)
  • Actual salary: €2,600/month (above minimum) ✅

Employee 3: 17-Year-Old Intern

  • Age: 17
  • Qualification: Student
  • Minimum wage: €2,570.93 × 80% = €2,056.74/month
  • Actual salary: €2,100/month (above minimum) ✅

Compliance: All employees paid above minimum wage, all labor law requirements met.