Following the 2.5% automatic wage indexation which applies from 1st May 2025 with a new index fixed at 968.04, you will find below a summary of the main social parameters applicable on this date. The changes are identified in bold.
Social minimum salaries for the employees (SSM)
INDEX 968.04 |
EUR |
EUR |
|
Hourly rate |
Monthly social minimum wage full time |
| Non-qualified worker: | ||
18 years old workers and more: 100% of the SSM |
15.6285 |
2,703.74 |
17-18 years old workers: 80% of the SSM |
12.5028 |
2,162.99 |
15-16 years old workers: 75% of the SSM |
11.7214 |
2,027.80 |
Qualified workers: |
18.7540 |
3,244.48 |
Minimum remuneration of pupils and students employed during the school holidays
INDEX 968.04 |
EUR |
EUR |
Pupils and students during the school holidays |
Hourly rate |
Monthly social minimum wage full time |
Who reached 18 years old |
12.5028 |
2,162.99 |
Who reached 17 years old |
10.0023 |
1,730.39 |
Who reached 15 and 16 years old |
9.3771 |
1,622.24 |
Remuneration of trainees
INDEX 968.04 |
EUR |
EUR |
Trainees |
Hourly rate |
Monthly social minimum wage full time |
30% of the SSM for unskilled employees if compulsory internship of ≥ 4 weeks |
4.6886 |
811.12 |
Unskilled trainees (minimum 4 weeks internship) |
|
|
40% of the SSM for unskilled employees if practical training of 4-12 weeks |
6.2514 |
1,081.49 |
75% of the SSM for unskilled employees if practical training of 12 up to 26 weeks |
11.7214 |
2,027.80 |
Trainees who successfully completed a first cycle of higher education (BTS or bachelor) |
|
|
40% of the SSM for qualified employees if practical training of 4-12 weeks |
7.5017 |
1,297.79 |
75% of the SSM for qualified employees if practical internship of 12 up to 26 weeks |
14.0657 |
2,433.36 |
Maximum basis for social contributions (except dependence insurance not limited to any cap) at current index 968.04
Monthly maximum in EUR |
13,518.68 |
Annual maximum in EUR |
162,224.16 |
Unchanged employee’s rates for social contributions in Luxembourg
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefit |
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 May 2025
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefit |
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 (financial absenteeism rate 0%-<0.65%) |
0.07 |
|
Employer mutuality: Class 2 (financial absenteeism rate 0.65%-<1.60%) |
0.99 |
|
Employer mutuality: Class 3 (financial absenteeism rate 1.60%-<2.50%) |
1.48 |
|
Employer mutuality: Class 4 (financial absenteeism rate >=2.50%) |
2.64 |
(*) 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 1stApril 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