2026 brings several significant changes affecting employees, employers and job seekers in Luxembourg. Here are the main updates you need to know about to stay informed and adapt quickly.
Salaries, pensions and financial support
From 1 January 2026, the overall pension contribution rate will rise from 24% to 25.5%, shared between employees, employers, and the State. This reform also introduces new measures, such as progressive pensions and more flexible recognition of years of study when calculating retirement entitlements.
According to Statec, an indexation is expected in the third quarter of 2026, which should lead to a 2.5% increase in salaries, wages and pensions.
In addition, a financial aid scheme for retirees or individuals aged 65 and over is expected to be introduced during 2026. The government specifies that this aid will decrease progressively based on income.
For more details, check out our dedicated article on labour laws and working conditions in Luxembourg.
Pay transparency
Luxembourg will transpose EU Directive 2023/970 on pay transparency into national law no later than 7 June 2026. This directive introduces new obligations for employers, including:
- Providing candidates and employees with information on salaries or salary ranges;
- Explaining the objective criteria used to determine and adjust compensation;
- Facilitating access to certain salary data to combat discrimination.
Did you know? Moovijob.com is the first Luxembourgish job board to offer an optional salary filter when posting job ads online.
Taxation
A major tax reform is expected to be presented in early January 2026 by the Minister of Finance. It will primarily aim to revise the tax scale to ensure fairer taxation, regardless of marital status.
Details of this reform can be found in our dedicated article.
Mobility and commuting
In 2026, several measures and projects will directly impact commuting, particularly for cross-border workers.
To ensure proper use of the third lane on the A3, reserved for public transport and carpooling, carpooling radar systems have been installed. Currently in testing since December 2025, they are expected to soon penalise drivers traveling alone in this lane.
New work is also planned on the Bettembourg-Luxembourg and Thionville-Luxembourg railway lines as part of their modernisation (full commissioning scheduled for 2027). Service interruptions, with replacement bus services, are scheduled for the following periods:
- From 14 to 23 February 2026;
- From 23 May to 1 June 2026;
- From 16 July to 24 August 2026.
These interruptions will primarily affect passengers from Thionville, Metz and Esch-sur-Alzette.
Minor works will also impact the Longwy-Luxembourg, Arlon-Luxembourg, Trier-Luxembourg, and Diekirch-Luxembourg lines.
However, there is good news for the road network, with the planned completion of several major construction projects:
- The Pontpierre interchange (A4) during 2026;
- The Belgian commuters’ road (between Mamer/Capellen and the Capellen area) in May 2026;
- The Beauregard viaduct (A31) after summer 2026, with a gradual return to normal traffic.
Additionally, construction for the future tram line is scheduled to start in 2026.
Working hours and organisation
From 1 January 2026, a new law allows certain businesses to extend Sunday working hours from 4 to 8 hours:
- Companies with 30 employees or fewer can apply this measure without negotiation;
- From 31 employees onwards, a collective agreement with unions remains mandatory;
- The existing rules regarding the six Sundays per year on which shops are allowed to open remain unchanged.
On 4 July 2026, sanctions will also come into force for employers who violate the right to disconnect, further protecting employees from work-related communications outside working hours.
Furthermore, a new law will allow many businesses to open from 5am to 9pm on weekdays, and until 7pm on weekends. Certain establishments (butchers, bakeries, pastry shops, caterers and food service establishments) will also be allowed to open on three specific public holidays: 1 May, 25 December and 1 January. This law will come into force on 19 June 2026.
Also to read: Luxembourg public holidays and school breaks in 2026.
Education and youth employment
From the start of the 2026 academic year, compulsory schooling in Luxembourg will be extended from 16 to 18 years of age. This measure aims to combat school dropout rates and will have an indirect impact on young people's access to employment, particularly for certain part-time jobs.
To stay up to date, follow all the latest news on employment and labour law in Luxembourg on the Moovijob.com blog.
