The law of 12 July 2019, amending Article L.222-9 of the Labor Code, has been published in Mémorial A and entered into force with retroactive effect as from 1 January 2019.
The new article L.222-9 provides that the minimum social wage ("salaire social minimum" - "SSM") applicable in Luxembourg for a non-qualified employee now amounts to € 2,089.75 (€ 256.60 index 100).
It is worth noting that since the law has been published with retroactive effect, regularizations will be required on the salaries paid between January and June 2019 by employers whose employees are paid the SSM.
This new increase adds up to the 1.10% increase resulting from the law of 21 December 2018, which had previously amended article L. 222-9 of the Labor Code.
The new monthly amounts of the SSM as well as the different legal thresholds and ceilings which are calculated on the basis of the SSM are as follows:
|SSM for qualified employees||€ 2.507,70|
|SSM for employees aged 17 to 18 years||€ 1.671,80|
|SSM for employees aged 15 to 17 years||€ 1.567,31|
Tax exemption for damages for unfair dismissal fixed by the labor court, settlement compensation and voluntary compensation in the event of resignation or termination by mutual agreement in accordance with article L.115 point 9 of the Income Tax Law ("L.I.R.")
|Exempt from tax up to € 25,077 (i.e. 12 times the SSM|
|Minimum contributory amount||€ 2,716.68|
|Maximum contributory amount||€ 10,448.75|