LexGo

Changes As Of 1 January 2021: Increase Of The Minimum Wage And Provision Of Financial Assistance To Companies
30/12/2020

Changes as of 1 January 2021: increase of the minimum wage and provision of financial assistance to companies

Minimum Wage Increase

The Act of 15 December 2020 amending article L.222-9 of the Labour Code comes into force on 1 January 2021.
The new legal provisions increase the minimum wage by 2.8%:

  • raising unskilled employees’ minimum monthly wages from EUR 2,141.99 gross to EUR 2,201.93 gross; and
  • raising qualified employees’ minimum monthly wages from EUR 2,570.39 gross to EUR 2,642.32 gross.

The index applicable to employees’ wages (834,76) remains however unchanged.

Financial aid granted to certain companies to offset the minimum wage increase

The Act of 19 December 2020 providing financial assistance to companies to compensate for the minimum wage increase comes into force on 1 January 2021.

This financial support benefits companies operating in sectors severely affected by the Covid-19 pandemic and whose financial situation renders the legally required wage increase difficult to put into place. This lump-sum subsidy may be allocated to companies operating in the defined sectors for each employee hired before the minimum wage increase and whose monthly gross salary on 1 January 2021 ranges between EUR 2,201.93 (i.e. the new minimum wage) and EUR 2,642.32 (i.e. the new qualified minimum wage).

The tax-free subsidy, capped at EUR 200,000 per company, amounts to EUR 500 per eligible employee and is granted for one month only falling between 1 January 2021 and 30 June 2021.

Companies are free to choose the month for which they wish to benefit from the subsidy during said period.

Zie ook : Arendt

[+ http://www.arendt.com]


Alle artikels Arbeidsrecht

Laatste artikels Arbeidsrecht

Circular CSSF 21/769 – Teleworking in supervised entities
23/04/2021

On 9 April 2021, the CSSF published Circular CSSF 21/769 regarding governance and security requirements for Supervised Ent...

Circular CSSF 21/769 – Teleworking in supervised entities Read more

Home working and other remote working options: New CSSF guidance released!
21/04/2021

On 9 April 2021, the Commission de surveillance du secteur financier (“CSSF”) published valuabl...

Home working and other remote working options: New CSSF guidance released! Read more

CSSF circular on governance and security requirements for teleworking
13/04/2021

On 9 April 2021, the Commission de Surveillance du Secteur Financier (the « CSSF »), the L...

CSSF circular on governance and security requirements for teleworking Read more

Covid-19 vaccination in the Luxembourg workplace
22/03/2021

As the Covid-19 vaccination process gathers steam, employers around the world consider what their vaccination strategy wil...

Read more

LexGO Network