Enlighten your future Increase in the minimum social wage as of January 1, 2025
Increase in the minimum social wage as of January 1, 2025
A bill of law intended to increase the minimum social wage was presented before the Deputy Chamber on November 15th 2024 and it is expected to apply as of January 1st 2025.
The bill of law n°8459 provides for an increase of 2,6% of the minimum social salary on this date. Hence, as from January 1st 2025, the minimum social monthly salary will be set at 2.637,79 EUR for a non-qualified worker and at 3.165,35 EUR for a qualified worker.
The minimum social wage serves as a reference point for various calculations, including tax exemption ceiling used for the " transactional compensation." To recall, the transactional compensation is paid as part of an amicable agreement that resolves a contentious or pre-contentious situation between an employer and an employee. In exchange for this payment, the employee agrees not to bring a legal action against the employer. This indemnity is tax-exempt up to an amount equivalent to twelve times the monthly minimum social wage for unskilled workers.
With the anticipated increase in the minimum social wage, the tax-exempt ceiling for the transactional compensation would automatically rise to EUR 31,653.48 as of January 1, 2025, compared to the current amount of EUR 30,851.16.
These provisions are expected to apply as of January 1, 2025, once the law is adopted.
