Salaries in Luxembourg
Let's break down what one can earn in 2024. We'll look at minimum wages for skilled and unskilled workers, see what most people make, and what affects your pay depending on your job.
Luxembourg is famous for its solid economy, high living standard and one of the highest salaries in Europe one can get. In terms of material living conditions and financial satisfaction, Luxembourg is outperforming the whole European Union! While the average index in Europe is 6.5, the Grand Duchy's index stands at 6.9.
How high is the Luxembourg average salary
The country consistently ranks high when it comes to average salaries worldwide, and 2024 is no exception. But before you start packing your bags, it's important to understand the specifics. We will take a look at the statistics on European salaries provided by Paylab, to take a look at the latest available data.
However, it is just as important to consider the data on the median salary in Luxembourg as well. In this regard, the Grand Duchy is also peerless.
According to Eurostat, Luxembourgers are one of the richest people in the European Union. The median income in the Grand Duchy is 42,482 euros per year or 3,540 euros per month (all net). This is almost twice as much as the EU average salary — 18,372 euros per year (1,531 euros per month).
Glossary
It is important to distinguish several financial terms when talking about salaries and incomes. Gross and net indicates the salary before deductions (such as taxes) and after the necessary deductions are made.
The median wage is an indicator that splits the total number of jobs into two equal parts: 50% are paid below the figure and 50% are paid above it. While the average wage is the arithmetical value of the earnings of a certain group of the working population.
This way, the median figure is considered to be more representative than the average wage, and net is more realistic than gross. Especially when income taxes in Luxembourg are pretty high too.
What is the minimum salary in Luxembourg
Luxembourg also has one of the highest minimum wages in Europe. In 2024, the minimum wage in Luxembourg depends on your age and experience. For adults, unskilled workers get at least 2,570.94 euros per month, while skilled workers earn 3,085.11 euros or more. Teenagers get a bit less — 75-80% of the wage for unskilled worker. This is the minimum employers can legally pay, but they are free to offer more.
European wage gap
The minimum wages across the European Union range dramatically, with Bulgaria offering the lowest at 477 euros per month and Luxembourg boasting the highest figure. This spread highlights the significant disparity in minimum wage levels across Europe. In fact, nearly two-thirds of EU countries fall below the 1,000 euros per month mark for minimum wage.
Luxembourg automatically adjusts wages, the process is called salary indexation, to match inflation. It happens when the cost of living rises enough to require higher salaries. Typically indexation in Luxembourg is held twice a year, but in 2023 with extremely high inflation, it happened three times.
There are two major groups of employees who receive the minimum wage in Luxembourg. According to the General Inspectorate of Social Security (IGSS), some 67,000 people are receiving a minimal wage in Luxembourg. In general, there are 16% more men receiving minimum wage, than women.
The unskilled workers between 20-24 years old
Skilled workers between the ages of 25-29 years old
Minimum salary in Luxembourg is calculated by the age and experience
Here is what you need to know about these calculations.
- The 15 to 17-year-olds have the lowest minimum wage in Luxembourg. It stands at 1,928.20 per month.
- For teenagers from 17 to 18 years old, the payment is slightly higher, at 2,056.74 euros per month.
- After reaching the age of 18, now adults can qualify for a minimum of 3,085.11 euros per month.
| For qualified employees | 19,28 euro/hour |
| For unqualified employees | 16 euro/hour |
| For adults | 16 euro/hour |
| For teenagers 17-18 years old | 12,85 euro/hour |
| For teenagers 15-17 years old | 12,05 euros/hour |
With a standard 40-hour work week, the minimum hourly salary in Luxembourg can be calculated approximately with this data.
What affects the amount of salary in Luxembourg
In 2024, several key factors come into play, from the booming tech scene to your area of expertise. This section breaks down the nitty-gritty of what shapes salaries in Luxembourg, giving you the inside track on maximising your earning potential.
Industry
Profession
Qualification and experience
Age
Equal pay
In Luxembourg, fairness is important: the employee's gender and type of contract are supposed to not affect the wage at all. The law ensures equal pay for equal work, regardless of these factors. Additionally, wages are automatically adjusted (salary indexation) to match inflation, typically twice a year.
- In Luxembourg, gender equality is established by law, employers are obliged to pay the same wage in Luxembourg, regardless of the employee's race, background and gender.
- Fixed-term workers are also entitled to the same salary as those with a permanent contract.
Luxembourg's unique workforce composition plays a significant role in salary determination. A high percentage of cross-border workers, primarily from neighbouring countries, influences wage dynamics and creates a competitive environment, particularly for in-demand skills, as well as some aspirations and the past achievement of this nation come to play role. These are the three factors that determine the labor market in Luxembourg nowadays.
The ambition to become the Silicon Valley of Europe
Fintech emphasis
Cross-border workers
What are the qualified workers' salaries
As mentioned before, high-skilled workers in Luxembourg tend to receive better salaries. To give you an example, let's take a look at a few professions and their average salaries for skilled workers.
At the top of the list of in-demand professions. The amount of salary depends strongly on the profile of the IT specialist, his experience, and the stack the worker has. In Luxembourg, the salary range for Information Technology (IT) professionals typically falls between 3,702 euros (average minimum wage) and 8,028 euros (average highest median wage), as we wrote in our special dedicated article for IT-workers looking for employment in the Grand Duchy.
A needed and well-paid profession of doctor in Luxembourg is in extreme demand too. According to Payscale, the average salary of a general practitioner in Luxembourg is about 120,000 euros per year. The amount can vary depending on the specialty, with some physicians earning considerably more. We can also refer you to our dedicated piece for more information.
This is a highly paid profession in the Grand Duchy. Luxembourg ranks first in the educational field salaries among the OECD countries. As we wrote earlier, an elementary school teacher with no experience can claim a salary of 68,000 euros per year. And if the experience is 15 years or more, the salary will start at 100,000. If the teacher works with older children and middle school, even without experience, he or she can expect an average salary of 77,000 euros. Secondary school teachers with 15 years of experience can expect to earn more than 107,000 euros annually.
However, it should be taken into account that it is really difficult to get a job as a teacher in Luxembourg, not only due to language requirements, but also the necessary certifications. If you are looking for teacher jobs, take a look at our article about working as English teacher for foreigners, it can give you a few ideas.
The government is actively looking for qualified professionals in education, police, tax authorities and digitalisation departments. Luxembourg has already created more than 2,306 jobs in public services in 2022 alone. Moreover, the average salary of Luxembourg civil servants is very attractive — around 8,688 euros per month, which is just over 104,000 euros per year.
However, to be working in the public sector it is necessary to have a good knowledge of the three state languages. Although there are positions available for foreigners, the competition is very high, as well as the requirements for applicants.
Usually, they can relocate to the country with special conditions, such as European Blue Card. These can be educated professionals in any field, that have a necessary degree and who came to Luxembourg under the labor contract. One of the Blue Card necessary requirements — is a minimum salary of 1.5 times that of the market average for a particular role.
What are the unqualified workers' salaries
Across Luxembourg labour market, salaries for unskilled workers show a clear connection to the type of job. Positions requiring less physical exertion or specific skills, like gardeners or housekeepers, tend to have lower average wages. These roles often start around 1,913 euros per month.
On the other hand, jobs with higher physical demands or potential risks, such as lorry drivers or certain social care positions, can see salaries approaching 3,028 euros monthly. This variation highlights how even within the category of unskilled work, differences in responsibilities and working conditions are reflected in compensation.
Hospitality and construction sectors are constantly in need of employees; the demand for labor in other areas is not going down either.
Now let's take a look at several professions and their average salaries for unskilled workers in Luxembourg.
Commerce
Cleaning
Service
Who and how regulates salaries in Luxembourg
In Luxembourg, salaries are regulated by the government by means of laws, collective agreements, the Ministry of Labor, and the employers themselves.
Government
The government sets the minimum salary for skilled and unskilled workers through law. Likewise, the state regulates the wage by means of taxes and social security contributions. In Luxembourg, both employees and employers contribute to the social security system, covering medical care, pension contributions, and other benefits. Luxembourg's tax system is a progressive one, meaning that those with higher incomes pay a higher percentage of their income in taxes.
Collective agreements
In industries where regular work overtime happens and non-standard working conditions apply, collective agreements play the role of regulator. Such collective bargaining agreements, usually put together by the trade union, employers, and employees of a specific given sector, are created to establish working conditions, social support measures, vacation time, and many other details. Collective agreements set minimum salaries in Luxembourg — the minimal amount of payment for the job, which can not be lower that the minimum wage set by the state.
Ministry of Labor
All extra working hours must be paid: like in many other countries, working hours in Luxembourg are limited to 40 hours per week. This rule applies to all employees without exception but still often excludes directors, managers, or self-employed people. If an employee is required to work at weekends, a permit from the Ministry of Labor must be obtained to do so. Weekend work is paid at double the normal wage and is only possible with the employee's consent.
Employer
Depending on the employer's choice, employees may be given a 13th salary or year-end bonus. Of course, there are also many bonuses for workers, that are considered to be benefits and allowances. We have covered them in our article.
Frequently Asked Questions (FAQ)
How much money can I make in Luxembourg?
Who has the best chance to find a job in Luxembourg?
Is there paid overtime in Luxembourg?
Source: guichet.public.lu, gouvernement.lu, ec.europa.eu, igss.gouvernement.lu
We took photos from these sources: Yuri Shirota for Unsplash
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