Increase of the minimum wage in Luxembourg, what does it change?

The budget law for 2019 has decided to revalue the minimum wage. How does this revaluation work? Who is concerned? How does this affect my pay slip? Adecco enlighten you on the subject.
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New legislation concerning the minimum wage

In 2019, the Luxembourg law legislated to revalue the minimum wage thanks to 2 measures:

  1. The increase of 2% of the minimum social wage (SSM : Salaire Social Minimum), in response to the government's commitment to increase the SSM by € 100.
  2. The creation of a new tax credit: the CISSM (Crédit d’Impôt Salaire Social Minimum). This tax credit of 70 € concerns employees and apprentices with a gross monthly salary between 1,500€ and 3,000 €.

How does this impact my Adecco pay slip?

The measures were validated in April 2019 with retroactive as of 1 January 2019.
They are divided into 3 laws split over the year 2019:

  1. Law of December 21, 2018
    First part of the salary increase (1.1% out of the 2% forecast).
    Measure applied by Adecco in January 2019
  2. Law of April 26, 2019
    Introduction of the tax credit retroactively to January 1st
    Measure applied by Adecco in July 2019
  3. Law of June 25, 2019
    Second part of the salary increase (the remaining 0.9% out of the 2% forecast)
    Measure applied by Adecco in September 2019

For concrete examples and more information, go to tax luxembourg or tax guide.

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