sponsored with funds of the European Union
Luxembourg (LU)
Employment
All in all the agriculture and horticulture sector employs 3,641 workers. 1,980 thereof are covered by collective agreements.
Seasonal workers are employed during the grape harvest. They have working time agreements, and for the whole duration of their employment they are covered by the collective agreement. They account for about 200 workers. Staff representatives also care for the seasonal workers.
International Comparison of Employment
Wages and Labour Costs
The employees covered by the collective agreement earn an average hourly wage of € 2.40. The breakdown of the welfare insurance payments for the workers is as follows:
Blue-collar workers pay 14.45 %, and white-collar workers pay 12.25 % of their wage, and
employers pay 14.45 % of the wage for blue-collar workers and 12.25 % for white-collar workers for welfare insurance.
The percentage of contributions to the accident insurance to be paid by the employer varies. It depends on the number of accidents.
There is no general percentage for the income tax rate. Income tax is calculated on the basis of the marital status and the income level. Example: A single worker with a relatively high income pays about 12 % of tax. A married worker with two children pays almost no tax at all.
In Luxembourg there is an index according to which all wages are increased regularly (in general by 2.5 %).
Seasonal workers as well as migrant workers are covered by Luxembourg's labour law and by existing collective agreements in the companies.
There is no company known not to observe the collective agreement. 1,980 out of the total number of 3,641 worker in this sector are covered by collective agreements.
International Comparison of Wages and Labour Costs
Working Time
The statutory regulation for working time is as follows: 8 hours per day, and 40 hours per week. There are also statutory provisions for exceptional regulations (12 hours/day and 60 hours/week).
In agriculture it is possible to change the working time as follows: 10 hours/day and 48 hours/week, the average being 40 hours/week. The average is defined for a period called the reference period. The reference period must be a minimum of 4 weeks and a maximum of 12 months.
For special types of seasonal work, e. g. the grape harvest, the is a special regulation saying that for a certain period the working time may be up to 12 hours per day and up to 60 hours per week.
International Comparison of Working Time
Leave and Paid Holidays
The labour law provides for 25 paid holidays per year and 10 paid public holidays. Collective agreements lay down more than 25 holidays and additional days off for special occasions, such as family events.
Additional payments are laid down in collective agreements, such as: holiday benefit, 13th monthly wage, profit sharing bonuses, seniority bonuses, bonuses for temporary work, performance bonuses, presence bonuses, etc.
International Comparison of Leave and Paid Holidays
Social Insurance
There is a financially independent system of social security that is managed by the social partners.
Occupational Health and Safety
Agriculture and forestry form one chamber of the accident insurance association.
International Comparison of Occupational Health and Safety
Trade Union Influence
In Luxembourg trade union influence is rather high. The degree of unionisation is 55 %.
International Comparison of Trade Union Influence
Minimum Standards
There are two minimum wages in Luxembourg: The minimum wage for unqualified labour of € 9.07, and the minimum wage for qualified labour of € 10.89 per hour.
The statutory minimum wages and pensions are increased every 2 years in addition to the index-based increase.
International Comparison of Minimum Standards
Trade Union Participation
The trade unions are represented in the companies by works councils, mixed works councils and administration boards. At the national level the trade unions are represented by elected members in welfare insurance and health insurance bodies, trade chambers, etc.
Another model used in Luxembourg is the "tri-partite group“, which includes government, employer and trade unions representatives.
International Comparison of Trade Union Participation
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