Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Luxembourg (Ratification: 1958)

The Committee notes the Government’s detailed report and the attached documentation. The Committee notes in particular that by law of 20 December 2002 the minimum social wage was increased by 3.5 per cent as from 1 January 2003 and now amounts to 1,368 and 1,642 euros per month for unskilled and skilled workers respectively. It also notes that at present approximately 15 per cent of all workers are remunerated at a rate close to the minimum social wage.

Article 3, paragraph 2(3), of the Convention. The Committee notes the Government’s indication that by law of 22 December 2000 the minimum wage applicable to young workers between 15 and 17 years of age was raised from 70 to 75 per cent of the adult minimum wage while the age category of 15 to 16 years was abolished. While noting these favourable developments, the Committee is bound to reiterate its position on this subject and to refer to paragraphs 169-181 of its 1992 General Survey on minimum wages where it indicated that, even though minimum wage instruments contain no provisions providing for the fixing of different minimum wage rates on the basis of such criteria as sex, age or disability, the general principles laid down in other instruments have to be observed in order to prevent any discrimination, inter alia, on grounds of age, and particularly the principles contained in the Preamble to the Constitution of the ILO, which specifically refers to the application of the principle of "equal remuneration for work of equal value". With regard to age, paragraph 171 of the above General Survey specifies that the quantity and the quality of work carried out should be the decisive factor in determining the wage paid. The Committee therefore recalls that, even though the minimum wage Conventions do not forbid the determination of lower minimum wage rates for young workers, the measures in this respect should be taken in good faith and should incorporate the principle of equal remuneration for work of equal value. The reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age should be regularly re-examined in the light of this principle. The Committee therefore requests the Government to provide information in future reports on any developments relating to the issue of the difference in minimum wage rates based on age and strongly hopes that the Government will be in a position to inform the Office in the near future of the progress achieved with a view to the full application of the principle of "equal remuneration for work of equal value".

Article 5 and Part V of the report form. The Committee notes the statistical information on the estimated proportion of employees remunerated at the minimum social wage level and the number of wage-related complaints filed with the labour inspection services in the period 1999-2001. It also notes the statistics concerning the distribution by sector and by gender of the workers remunerated at the minimum social wage rate according to which the sector of retail trade, hotel and catering employs the highest number of minimum wage earners, 25 per cent of which are male workers and 44 per cent are female workers. Moreover, among the total active population, one-eighth of male workers and one-fifth of female workers receive the minimum social wage. The Committee would be grateful to the Government for continuing to supply up-to-date information on the effect given to the Convention in practice, including the minimum rates of pay in force, available data on the readjustment of minimum wage rates in recent years as compared to the evolution of the consumer price index or other similar indicators in the same period, the approximate number of workers covered by relevant legislation, statistics on labour inspection visits and the results obtained, extracts from relevant reports or studies as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.