Social minimum wage: What changes on 1 January 2027
Social minimum wage: What changes on 1 January 2027
The social minimum wage (SSM) is expected to increase by 3.8% on 1 January 2027, in accordance with Bill No. 8837, tabled on 5 October 2026. This increase will have a direct impact on the wage costs of Luxembourg companies.
In order to mitigate this impact, the Government also tabled Bill No. 8847 on 15 October 2026, providing for an exceptional financial contribution to employers.
At the same time, Bill No. 8775 provides for an increase in the Social Minimum Wage Tax Credit (CISSM), intended to support the purchasing power of the employees concerned.
What changes are being considered and what are their consequences for employers?
Here is an overview of the main measures to be anticipated for 2027.
In order to mitigate this impact, the Government also tabled Bill No. 8847 on 15 October 2026, providing for an exceptional financial contribution to employers.
At the same time, Bill No. 8775 provides for an increase in the Social Minimum Wage Tax Credit (CISSM), intended to support the purchasing power of the employees concerned.
What changes are being considered and what are their consequences for employers?
Here is an overview of the main measures to be anticipated for 2027.