What will change for employees and employers?

From 1 January 2027, several measures will come into force aimed at strengthening employees’ purchasing power.

As of 01.01.2027
• Increase of the social minimum wage by approximately 3.8% (around €105)
• Increase of the CISSM (Crédit d’Impôt Salaire Social Minimum – tax credit linked to the social minimum wage) from €81 to €179

As of 01.07.2027
• Further increase of the CISSM from €179 to €200

Particularly noteworthy:

These changes will not only benefit employees earning the minimum wage. Due to the progressive reduction mechanism of the CISSM, employees with a monthly income of up to €3,600 may also benefit from these measures.

For employers, this means that payroll calculations, systems, and internal processes should be reviewed and adjusted in a timely manner.

For employees, the changes will be reflected directly on their payslips in the future.

Especially in the Germany–Luxembourg cross-border region, it is advisable to assess the potential impact early and prepare any necessary adjustments.

Should you have any questions regarding these changes, please do not hesitate to contact us.

Status as of 15 June 2026.