Social parameters on 1st April 2023
In Brief
Please find hereunder a summary of the main social parameters applicable on 1st April 2023 further to the latest general salary indexation of + 2.5% that occurred on 1st April 2023.
The changes are identified in bold and concern the social minimum salaries for employees, trainees and students and the maximum monthly/yearly basis for social contributions.
Social minimum salaries
INDEX 921.40 |
EUR |
EUR |
Non-qualified worker |
Hourly rate |
Monthly gross social minimum wage full time |
For 18 years old and more (MSS) |
14.4985 |
2,508.24 |
From 17 till 18 years old: 80 % of MSS |
11.5988 |
2,006.59 |
From 15 till 17 years old: 75 % of MSS |
10.8739 |
1,881.18 |
Qualified worker |
17.3982 |
3,009.88 |
Remuneration of pupils and students employed during the school holidays
INDEX 921.40 |
EUR |
EUR |
Pupils and students during the school holidays |
Hourly rate |
Monthly gross social minimum wage full time |
Who have reached 18 years old |
11.5988 |
2,006.59 |
Who have reached 17 years old |
9.2790 |
1,605.27 |
Who have reached 15 and 16 years old |
8.6991 |
1,504.94 |
Remuneration of trainees
INDEX 921.40 |
EUR |
EUR |
Trainees |
Hourly rate |
Monthly gross social minimum wage full time |
30% of the minimum social wage for unskilled employees if compulsory internship of ≥ 4 weeks |
4.3495 |
752.47 |
Unskilled trainees |
|
|
40% of the minimum social wage for unskilled employees if practical training of 4-12 weeks |
5.7994 |
1,003.29 |
75% of the minimum social wage for unskilled employees if practical training of 12 up to 26 weeks |
10.8739 |
1,881.18 |
Trainees who have successfully completed a first cycle of higher education (BTS or bachelor) |
|
|
40% of the social minimum wage for qualified employees if practical training of 4-12 weeks |
6.9593 |
1,203.95 |
75% of the social minimum wage for qualified employees if practical internship of 12 up to 26 weeks |
13.0486 |
2,257.41 |
Maximum basis for social contributions (except dependence insurance not limited to any cap) at current index 921.40
Monthly maximum in EUR |
12,541.18 |
|
Annual maximum in EUR (*) |
149,278.30 |
(*) The Statec anticipates a new general salary indexation for the last quarter of 2023. In this case, the above annual ceiling will be adjusted in consequence.
Unchanged employee’s rates for social contributions in Luxembourg on 1st April 2023
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefits |
Illness health expense |
2.80 |
2.80 |
Illness cash benefits |
0.25 |
- |
Pension |
8.00 |
8.00 |
Dependence (*) |
1.40 |
1.40 |
(*) Tax allowance equal to one fourth of the non-qualified social minimum salary for minimum 150 hours per month.
Unchanged employer’s rates for social contributions in Luxembourg on 1st April 2023
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefits |
Illness health expense |
2.80 |
2.80 |
Illness cash benefits |
0.25 |
- |
Pension |
8.00 |
8.00 |
Accident at work |
0.75 (*) |
0.75 (*) |
Health at work |
0.14 |
0.14 |
Employer Mutuality: Class 1 |
0.72 |
- |
Employer Mutuality: Class 2 |
1.22 |
- |
Employer Mutuality: Class 3 |
1.76 |
- |
Employer Mutuality: Class 4 |
2.84 |
- |
(*) The rate of Accident at work depends on a bonus/malus coefficient (from 0.85 to 1.5) defined and displayed by the Association d’Assurance Accident. This coefficient is based on the class of risk and the number of accidents at work in the company (professional sickness and commuting accidents are excluded) over the period from 1st April Y-2 to 31st March Y-1.
Contact us
Vinciane Istace
Advisory Partner, People Experience and Change Leader | People Process Outsourcing Leader, PwC Luxembourg
Tel: +352 621 332 112
Advisory Director, People Process Outsourcing (PPO), PwC Luxembourg
Tel: +352 621 336 244