2025 begins on a positive note for residents and cross-border workers in Luxembourg. With income increases, tax reliefs, and other measures, the government is implementing ambitious initiatives to improve daily life. Here are the main changes:
Minimum wage
- Unskilled: €2,637.79 gross per month.
- Skilled: €3,165.35 gross per month.
Salary indexation
- An increase is planned for the spring, subject to sufficient inflation.
Tax relief
- Non-skilled minimum wage earners will no longer be taxed.
- An average reduction of 6.3% for other taxpayers.
Support for single parents
- Increased tax benefits, particularly for those with an annual gross income up to €50,000.
"Young Employee" bonus
- Aimed at workers under 30 to help them find work.
Pensions
- A 1.6% increase as of 1st January 2025.
Tax for impatriates
- Extension of the partial exemption of income for expatriate workers as part of Luxembourg’s tax incentives.
Corporation tax
- A revision of the system for fairer taxation of collective entities.
Tripled energy allowance
- Extended financial support to help households cope with rising energy costs.
These measures aim to strengthen purchasing power and improve living conditions in Luxembourg. Their successful implementation will be crucial in ensuring concrete results. As for the salary indexation planned for the spring, it remains conditional on inflation developments. We will keep you updated on its progress on the blog!
