Luxembourg ranks third in the world in wages
According to recent statistics, Luxembourg ranks in the top 3 countries with the highest after-tax income globally. The country's impressive average earnings amount to 4,918 euros, making it one of the most attractive destinations for highly-skilled professionals seeking a lucrative career.
However, Luxembourg is not alone in its success. Singapore, the financial hub of Asia, closely follows in second place with an average after-tax income of 4,923 euros. The undisputed leader in terms of high wages is Switzerland, with workers earning a staggering 6144 euros on average. Other notable countries in the top ten include the United States, Qatar, and Ireland.
Despite the impressive rankings, it is important to understand the nuances of the data. While Luxembourg consistently outperforms the EU and the world in terms of payment to salaried workers, it is equally important to consider the high cost of living in the country. Rankings often fail to take this factor into account, especially when it comes to wealthy but expensive countries like Luxembourg.
What are the usual salaries for different jobs and skills in Luxembourg? Find it out in our special article:
To put things in perspective, the median income in Luxembourg is 42,482 euros net per year, which translates to approximately 3,540 euros per month. However, this number is only a median, meaning that half of the population earns more than that, while the other half earns less. It should not be confused with the average income. Across the EU, workers earn only 1,531 euros per month on average, highlighting the massive difference in wages between Luxembourg and the rest of the continent.
In comparison, the closest figures to Luxembourg's median income are
- Belgium with 2155 euros per month,
- Germany with 2085 euros per month, and
- France with 1890 euros per month.
However, when factoring in the high cost of living in Luxembourg, the advantage of high wages is quickly lost. It turns out that Europeans live roughly the same, even though some earn several times more than others.
Despite the challenges of living in an expensive country, Luxembourg remains a top destination for professionals seeking high wages and a high quality of life. Its booming financial sector, low tax rates, and stable economy make it an attractive destination for individuals from around the world.
