Wages in Luxembourg, as in neighbouring Belgium, are indexed: they increase according to prices. In the past, there has been an automatic increase in all wages in the month following the 2.5% increase in the consumer price index, although in times of economic crisis it was possible to postpone the increase if a tripartite committee of unions, employers and the government agreed to do so. After the lack of agreement in the tripartite committee at the end of 2011, the government changed the rules. It has introduced legislation under which the increase in inflation should only be paid once a year, in October, for at least three years, in 2012, 2013 and 2014. Ideally, all relevant unions should sign the agreement. However, if this is not possible, the agreement can be signed by one or more unions, provided that they also invite the other unions to sign. If other unions are not willing to sign it, unions that wish to do so can continue to do so, provided they have, individually or collectively, the support of at least 50% of the workers covered by the agreement, as demonstrated by the recent election of workers` representatives. In addition to the issues dealt with at the industry or enterprise level, the legislation allows agreements on social dialogue at the national level to be concluded. Concrete examples cited in the legislation include the organisation of working time, training and the implementation of agreements and directives at European level. The European telework agreement was implemented in Luxembourg in February 2006. Current collective agreements for the banking and insurance sectors were negotiated in 2018 and are valid for 2018, 2019 and 2020. The Luxembourg trade union ALEBA has announced the extension of collective agreements for banks and insurance companies for the years 2021-23. The collective agreement for employees in the insurance sector was signed on 5 June 2012.

In his letter of 18 June 2012, the Minister of Labour, Nicolas Schmit, took the […] Workers of insurance companies operating in the Luxembourg financial market are protected by a collective labour agreement (CTC). This collective agreement is concluded by the trade unions, including ALEBA, and the employers, i.e. the members of the Association of Insurance and Reinsurance Companies of the Grand Duchy of Luxembourg (Luxembourg Association of Insurance and Reinsurance Companies or ACA), www.aca.lu, usually for a period of three years. This collective agreement guarantees good working conditions that often go beyond what the Luxembourg labour code requires. The new collective agreement (available in French) for 2018-2020 was officially signed on 12 July 2018 by ABBL, ALEBA, LCGB-SESF and OGB-L. The system aims to foster consensus and convergence. Employers are required to enter into negotiations when they are interviewed individually or through their employers` organizations. If they object or if the negotiations collapse without agreement, the case is referred to the national conciliation machine, which in some cases involves arbitration. This means that both sides must first try to negotiate an agreement before industrial action can be taken, and if they have failed to worship outside mediation.

The agreements cover all labour relations issues, including pay and working conditions. The 2004 legislation contains a number of issues to be included in the agreement, as well as over-wage, working time and leave, agreements must cover the amount of bonuses for night work, additional payments for particularly difficult or unpleasant work, mechanisms guaranteeing equal pay and how to deal with sexual harassment and moral harassment.