LUXEMBOURG will increase its minimum wage by 2.8 per cent from January 1, 2021, taking it up to €2,201.93, the highest in Europe.
This comes following a unanimous vote in parliament and despite strong criticism from business groups.
The basic minimum gross monthly salary for unskilled workers will be €2,201.93 and €2,642.32 for employees with qualifications, which means the monthly pay packet will be between €59 and €72 more than it is now for an estimated 14 per cent of the population.
The estimated total additional annual bill for companies as a result of this is around €54 million, when extra social security contributions are taken into account.
Business groups, including the Luxembourg Union of Businesses and the Chamber of Commerce had criticised the proposal, although the government has also introduced a one-off €500 payment to firms in vulnerable sectors to help cover the cost
Minister of Family and Integration Corinne Cahen said that the measure will help with the country’s economic recovery as people will have more money to spend.
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