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Year in review
i Significant legal developments
Luxembourg labour law is always evolving to adapt to changing social circumstances. In recent years, there have been several important legal developments.
Salary increases
The law of 23 December 2022, amending Article L.222-9 of the Labour Code and adapting minimum social wage rates to the evolution of the average wage during 2020 and 2021, came into force on 1 January 2023. It upgrades the minimum social wage, increasing it by 3.2 per cent, and has been followed by wage indexations.
Wage indexation is an automatic mechanism to adjust salaries in pace with evolving living costs, as determined by STATEC, Luxembourg's national statistics and economic studies bureau. Salaries are automatically raised when the cost of living increases by at least 2.5 per cent. The aim of this measure is to compensate loss of purchasing power due to inflation by increasing salaries accordingly.
The most recent indexations took place on 1 February 2023 and 1 April 2023, with the index applicable to employees' wages increasing from 877.01 to 898.93, and from 898.93 to 921.40, respectively.
From 1 April 2023, the gross minimum wage is 2,508.24 per month for unskilled workers and 3,009.88 per month for skilled workers.
Whistleblowing
On 21 May 2023, the law of 16 May 2023, implementing Directive (EU) 2019/1937 of 23 October 2019 on the protection of persons who report breaches of EU law, came into effect. This law introduces significant...
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