On January 1 2017 the sliding wage scale index for salaries increased from 775.17 points to 794.54 points. As a result, the new minimum monthly wage, which was increased by the Law of December 15 2016 modifying Article L 222-9 of the Labour Code, has been revalued.

The following table summarises the changes, which are applicable as of January 1 2017.

Minimum salary rates Gross amount as of January 1 2017 (index 794,54)

Minimum monthly wage (MMW)

(Articles L 222-9 and L 223-1, Labour Code)
  • €1,998.59 (unskilled workers)
  • €2,398.30 (skilled workers)
  • Settlement amount
  • Damages for unfair dismissal fixed by the employment jurisdiction
  • Ex gratia amount in case of resignation or termination by mutual consent

(Article 115(1)(9), Law on Income Tax)

Tax exempt up to €23,983.08 (12 times the MMW)

MMW required to enforce a trial period of seven to 12 months

(Article L 121-5(2), Labour Code)

€4,258.73

Yearly minimum salary required at the end of a contract to enforce a non-compete clause after the contract has ended

(Article L 125-8(3), Labour Code)

€54,164.35

For further information on this topic please contact Guy Castegnaro or Ariane Claverie at Castegnaro by telephone (+352 26 86 82 1) or email ([email protected] or [email protected]). The Castegnaro website can be accessed at www.castegnaro.lu.

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