New minimum monthly salaries in effect

IMPACT – LOW

What is the change? Luxembourg has increased the minimum monthly salary for non-qualified foreign workers, qualified foreign workers and EU Intracompany Transferees.

• Effective date: Jan. 1, 2020.
• Visas/permits affected: Work permits.
• Who is affected: Companies employing foreign nationals in Luxembourg.

Additional information:

• The minimum salary for non-qualified foreign workers has increased to EUR 2,141.99 from EUR 2,089.75.
• The minimum salary for qualified workers has increased to EUR 2,570.39 from EUR 2,507.70.
• The minimum salary for EU Intracompany Transferee permits has increased to EUR 2,570.39 from EUR 2,507.70.

Analysis and Comments: Foreign employees in Luxembourg salaries typically already exceed the thresholds, and businesses should expect a minimal change in labor costs for workers because of the new minimum wage. Companies should ensure that all work permit applications meet or exceed the threshold salary levels for foreign workers.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.