Impact of the adjustment of wages, salaries and pensions (+2.5%) on 1 August 2018

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Date:
08 Aug 2018

Newsflash

By:
Dorothée David

Impact of the adjustment of wages, salaries and pensions (+2.5%) on 1 August 2018

According to the final results published by STATEC on August 8, 2018, the annual inflation rate of the national consumer price index (NPI) was 1.5% for the month of July 2018, triggering a new indexation .

As a result, the new application rating of the sliding salary scale increased from 794.54 points to 814.40 points on 1 August 2018, resulting in a 2.5% increase in wages, salaries and pensions.

Thus, as of August 1, 2018, the new monthly minimum social wage is revalued to the amount of (index 814.40):

  • 2,048.54.- EUR gross for unqualified employee (18 years old)
    • 1,638.83.-EUR from 17 to 18 years
    • 1,536.41.-EUR from 15 to 17 years
  • 2,458.25.-EUR gross, for qualified employee

Otherwise, the indexation of salaries at August 1, 2018 entails the adjustment of various thresholds and ceilings provided for by the Law, summarized in the table below :

 

As from 1st August 2018 (gross amounts, index 814,40)

 

 

Monthly Minimum Wage (MMW)

(art. L. 222-9 & L. 223-1 of the Labour Code)

 

2,048.54.- EUR (unqualified employee)

2,458.25.-EUR (qualified employee)

 

 

  • Settlement amount
  • Damages for unfair dismissal fixed by the Employment Jurisdiction,
  • Ex gratia amount in case of resignation or termination by mutual consent

(art. 115 § 1 point 9 of the Law on Income Tax)

 

Tax-exempted up to:

 

23,983.08.- EUR (for 2018)

24,582.48.- EUR (as of January 1, 2019)

 

(12 x the MMW)

 

 

Monthly Minimum Wage required to enforce a Trial period of 7 to 12 months

(art. L.121-5 (2) of the Labour Code)

 

 

4,365.18.- EUR

 

 

Yearly Minimum gross Salary required at the end of the contract to enforce a Non-compete clause after the end of the contract

(art. L.125-8 (3) of the Labour Code)

 

+ 55,518.22.- EUR

STATEC