Luxembourg introduces social inclusion income scheme

Luxembourg's parliament, the Chambre des Députés, has voted to replace the country’s guaranteed minimum wage with a new social inclusion income scheme (Revis).

The Revis will come into force in January 2019, at which time the current guaranteed minimum income (Revenu Minimum Garanti 815.17) system will cease to be. Around 20,000 people will be affected by the new legislation, which will be reassessed in 2022, according to the Luxembourg Times. 

Households with children will receive a 15% wage boost, with a rise of €105 (US$122) if they receive family allowances. The aim is to improve the living conditions of children in low-income families. Some retirees will likewise benefit as will self-employed people. They are entitled to receive the Revis for a period of six months, and can renew their application once.

The new scheme will comprise an inclusion allowance, which includes a basic lump sum of €701.19 (US$815.17) per person and a common subsidy per household of the same amount.

For households with children, there are plans to offer an additional allowance. A new 'immunisation' mechanism will also apply to certain full-time and part-time occupations and, in future, 25% of incomes from these occupations will not be considered when calculating social inclusion income.

The new initiative will also allow two adults in each household to accept a job as part of a reintegration into work programme, whereas only one person per household was able to do so under the existing RMG system.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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Luxembourg's parliament, the Chambre des Députés, has voted to replace the country’s guaranteed minimum wage with a new social inclusion income scheme (Revis).

The Revis will come into force in January 2019, at which time the current guaranteed minimum income (Revenu Minimum Garanti 815.17) system will cease to be. Around 20,000 people will be affected by the new legislation, which will be reassessed in 2022, according to the Luxembourg Times. 

Households with children will receive a 15% wage boost, with a rise of €105 (US$122) if they receive family allowances. The aim is to improve the living conditions of children in low-income families. Some retirees will likewise benefit as will self-employed people. They are entitled to receive the Revis for a period of six months, and can renew their application once.

The new scheme will comprise an inclusion allowance, which includes a basic lump sum of €701.19 (US$815.17) per person and a common subsidy per household of the same amount.

For households with children, there are plans to offer an additional allowance. A new 'immunisation' mechanism will also apply to certain full-time and part-time occupations and, in future, 25% of incomes from these occupations will not be considered when calculating social inclusion income.

The new initiative will also allow two adults in each household to accept a job as part of a reintegration into work programme, whereas only one person per household was able to do so under the existing RMG system.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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