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

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request, and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Article 1 of the Convention. Minimum wage fixing machinery and minimum wage rate. In its previous comment, the Committee had requested the Government to indicate how the amount of the social minimum wage (SSM) ensured a decent standard of living to the workers concerned. In its report, the Government indicates that Luxembourg is one of the few countries in the world to adjust SSM rates to variations of the consumer price index in order to ensure a decent standard of living for workers. In this respect, the Government indicates that the SSM was readjusted on several occasions and that the Minister of Labour and Employment recently submitted to the Cabinet of Ministers a draft report on the evolution of wages, to be submitted to the Parliament together with a bill to increase the SSM by 1.5 per cent from 1 January 2013. Accordingly, the SSM for non-qualified and qualified employees will reach €1,874.19 per month for unskilled workers and €2,249.03 per month for skilled workers. The Committee requests the Government to continue to provide information on the evolution of minimum wage rates.

Article 3(2)(2). Machinery for revising the minimum wage rate – Participation of employers’ and workers’ organizations in equal numbers and on equal terms. With reference to its previous comment, the Committee notes the Government’s indication that, in the context of the consultation process, workers’ and employers’ organizations are invited to express their views on draft laws concerning the readjustment of the SSM. Recalling that under the Convention consultations with employers’ and workers’ organizations in equal numbers and on equal terms are needed at all stages of the process of fixing or revising minimum wages, the Committee requests the Government to provide more detailed information on the institutional framework in which consultations are held (e.g. frequency, mode of participation, mandate).

Article 3(2)(3). Differentiated minimum wage rates for young workers. With reference to its previous request, the Committee notes the adoption of the Act of 6 February 2009 on compulsory schooling, which entered into force at the beginning of the 2009–10 school year and raised the end of compulsory schooling from 15 to 16 years of age. It also notes that, according to section L.222-5 of the Labour Code, the rate of the SSM for workers under 18 years of age is set at 80 per cent of the SSM of adult workers with respect to young persons between 17 and 18 years, and at 75 per cent for young persons between 15 and 17 years. In this regard, the Committee recalls that, while the Convention does not prohibit the fixing of different minimum wage rates on the basis of criteria such as age, minimum wage levels should be essentially determined on the basis of objective factors such as the quality and quantity of work, according to the principle of “equal remuneration for work of equal value”. The Committee also recalls, as underlined in paragraph 176 of its General Survey of 1992 on minimum wage fixing, that 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 the principle of equal remuneration for work of equal value. The Committee accordingly requests the Government to provide further clarifications on this issue.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes the adoption of the Labour Code, Act of 31 July 2006, which, inter alia, repealed the Act of 12 March 1973 on the reform of the minimum social wage, as amended.

Article 1 of the Convention. Minimum wage-fixing machinery and minimum wage rates. The Committee notes that, in absolute terms, the minimum wage rate in Luxembourg is the highest among those Member States of the European Union which have national legislation establishing a legal minimum wage. However, as emphasized in Part III of the Minimum Wage-Fixing Machinery Recommendation, 1928 (No. 30), which supplements the Convention, “for the purpose of determining the minimum rates of wages to be fixed, the wage-fixing body should in any case take account of the necessity of enabling the workers concerned to maintain a suitable standard of living”. In this regard, the Committee notes that, in its conclusions of December 2007, the European Committee of Social Rights (ECSR) pointed out that in Luxembourg the minimum wage corresponded to 54.8 per cent of the average national wage. Where the minimum wage is between 60 and 50 per cent of the average national wage, this Committee invites the State concerned to demonstrate that this wage enables a decent standard of living to be achieved, for example by supplying detailed information on the cost of living. In its conclusions, the ECSR indicated that the Government of Luxembourg had not provided any information of this kind. Moreover, the Committee notes that, according to the information published by Eurostat in June 2007 (press release 85/2007) the minimum wage in Luxembourg represented
51 per cent of the average gross wage for industry and services in 2005. In the light of the above, the Committee requests the Government to supply all available information showing to what extent the amount of the minimum social wage enables a decent standard of living to be achieved for the workers concerned.

Article 3, paragraph 2(2). Machinery for revising the minimum wage rate – participation of employers’ and workers’ organizations in equal numbers and on equal terms. The Committee notes that, in accordance with section L.222-2 of the Labour Code, the minimum social wage rate is fixed by law and that for this purpose the Government submits a report every two years to the Chamber of Deputies on changes in general economic conditions and income, together with a draft law, if applicable, raising the minimum social wage rate. It also notes section L.222-3 of the Labour Code, which, without prejudice to the abovementioned provisions, provides for an adjustment of the minimum wage rate in relation to the weighted consumer price index. The Committee notes the Government’s report on changes in general economic conditions and income, which was presented to the Chamber of Deputies on 12 November 2004. It notes that the Government regularly undertakes a study of changes in the minimum wage rate in relation to changes in the average hourly wage of the reference group and then proposes to the Chamber of Deputies a corresponding readjustment of the minimum wage. It notes that the minimum wage was thus adjusted by 2 per cent as from
1 January 2005 and that, since 1 January 2007, it stands at €1,570 for unskilled workers and €1,884 for skilled workers. However, the Committee draws the Government’s attention to the need to consult employers’ and workers’ organizations fully and on equal terms at every stage of the process of fixing and adjusting minimum wages. As it emphasized in its 1992 General Survey on minimum wages (paragraph 425), Governments are urged “to take the necessary action to ensure that the consultation and participation of the social partners in the establishment and modification of minimum wage machinery or its operation is useful and effective, i.e. that these representatives are genuinely given an opportunity to express their views, in full knowledge of the facts, that their views are taken into consideration at the appropriate time, and that the consultation and participation are on an equal footing”. The Committee therefore requests the Government to supply information on the way in which representative employers’ and workers’ organizations are associated in the process of drawing up a report on changes in general economic conditions and income and proposing any adjustments to the minimum social wage rate to the Chamber of Deputies.

Article 3, paragraph 2(3). Minimum wage rates for young workers. The Committee notes with interest that the Act of 22 December 2000 abolished, in the context of various abatements for young persons under 18 years of age, the 15–16 age category, and raised the percentage of the adult minimum wage applicable to the 15–17 age group. It notes that, under section L.222-5 of the Labour Code, the minimum wage is fixed at 80 per cent of the adult minimum wage for young workers in the 17–18 age group and 75 per cent of this amount for young workers in the 15–17 age group. It also notes that a draft law on compulsory schooling aims to increase the age of completion of compulsory schooling from 15 to 16 years and that, according to the indications in the Government’s report, it is likely that the question of abatements according to age will also be raised in this context. The Committee requests the Government to continue providing information on progress made on the procedure for adoption of the draft law on compulsory schooling and on any reforms of the system of abatements applied to the adult minimum wage for young workers concerned.

Article 5 and Part V of the report form. Practical application. The Committee notes that, according to the 2004 report on changes in general economic conditions and income, referred to above, the proportion of workers earning the minimum wage increased from 14 per cent in 1993 to 18 per cent in 2004. It also notes that the sectors containing the highest proportion of workers earning the minimum wage are, respectively, trade, catering and accommodation (31 per cent of men and 49 per cent of women) and agriculture (40 per cent of men and 30 per cent of women). Furthermore, it notes that the inspectorate of labour and mines received 446 complaints relating to wages in 2005. The Committee requests the Government to continue supplying information on the application of the Convention in practice. In particular, it requests the Government to indicate whether it has information on the reasons for the increase in the proportion of workers earning the minimum wage and, if so, to provide the Office with information on this subject. The Government is also invited to supply more detailed information on the results of the activities of the inspectorate of labour and mines, stating what proportion of the 446 complaints referred to by the Government relates to non-observance of the legal provisions on minimum wages, trends in the number of complaints in recent years, and the measures taken by the inspectorate of labour and mines to put an end to the reported infringements. The Committee also requests the Government to supply information on any difficulties encountered in the application of the Convention, for example on cases in which employees face difficulties in being recognized as skilled workers and thereby benefiting from a higher minimum social wage rate.

Finally, the Committee takes this opportunity to draw the Government’s attention to the conclusions adopted by the ILO Governing Body on the basis of the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Governing Body considered that Convention No. 26 was one of the instruments which were still relevant in certain respects, even though they were no longer fully up to date. The Committee therefore suggests that the Government examine the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which represents a degree of progress in comparison with previous instruments concerning the fixing of a minimum wage, for example by providing for a wider scope, the setting up of a general minimum wage system and, finally, the adoption of certain criteria for determining minimum wage levels. The ratification of Convention No. 131 appears all the more desirable in as much as the legislation of Luxembourg with respect to minimum wages appears largely to conform to the requirements of this instrument. The Committee requests the Government to keep the Office informed of any decision taken or contemplated on this subject.

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

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.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Article 1 of the Convention, read in conjunction with Article 3. The Committee notes the Government’s statement to the effect that the Act of 23 December 1994 abolished the minimum social wage including family allowances, given that this type of minimum social wage is no longer needed following the introduction of a guaranteed minimum income which should take account more closely of the composition of individual workers’ households.

The Committee requests the Government to indicate to what extent employers’ and workers’ organizations were consulted before this decision was taken.

  Article 5 (read in conjunction with Part V of the report form). The Committee requests the Government to continue to provide information on the practical application of the Convention, for example: (i) the minimum wage rates in force; (ii) available data on the number and various categories of workers covered by the minimum wage regulations; and (iii) the results of any inspections carried out (for example, any violations noted, sanctions imposed, etc.).

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report.

Article 1 of the Convention, read in conjunction with Article 3. The Committee notes the Government's statement to the effect that the Act of 23 December 1994 abolished the minimum social wage including family allowances, given that this type of minimum social wage is no longer needed following the introduction of a guaranteed minimum income which should take account more closely of the composition of individual workers' households.

The Committee requests the Government to indicate to what extent employers' and workers' organizations were consulted before this decision was taken.

Article 5 (read in conjunction with point V of the report form). The Committee requests the Government to continue to provide information on the practical application of the Convention, for example: (i) the minimum wage rates in force; (ii) available data on the number and various categories of workers covered by the minimum wage regulations; and (iii) the results of any inspections carried out (for example, any violations noted, sanctions imposed, etc.).