What was announced
In March 2026, the Luxembourg government announced a +3.8% increase of the social minimum wage (SSM) on 1 January 2027. This rise comes on top of the automatic wage indexation mechanism: it is structural, not inflation-driven.
In short: around 70,000 employees paid at the minimum wage will see their gross salary rise by 3.8% in early 2027, independently of any indexation tranches triggered in the meantime.
Estimated amounts
Based on the amounts in force since the 1 June 2026 indexation, the +3.8% increase would give the following orders of magnitude (excluding possible intermediate indexations):
| 2026 (current) | 2027 (estimate +3.8%) | |
|---|---|---|
| Unqualified SSM | EUR 2,703.74 | ≈ EUR 2,806 |
| Qualified SSM (+20%) | EUR 3,244.48 | ≈ EUR 3,368 |
If an indexation tranche (+2.5%) is triggered before January 2027, these amounts will be recalculated upwards. Final amounts will be set by grand-ducal regulation.
And in net terms?
At minimum wage level, almost all of the gross increase ends up in the net salary: income tax is low and the social minimum wage tax credit (CISSM) continues to apply. Use our simulator to get your exact amount for your tax class.
Why this increase?
Luxembourg's minimum wage is reviewed every two years by the government based on overall wage trends, as required by law. The +3.8% increase reflects the recent progression of average salaries. Luxembourg thus keeps the highest minimum wage in the European Union.
Calculate your net salary at the SSM
Simulate your net at the 2026 minimum wage — and anticipate the 2027 increase — with the official ACD tax brackets.