The Grand Duchy of Luxembourg is an inland country in northwestern Europe with its capital in Luxembourg. It is bordered to the west and north by Belgium, to the east by Germany and to the south by France.
Luxembourg is a constitutional monarchy. The country is a member of the United Nations, the Council of Europe, the European Union, NATO and the Benelux.
A small destination with a population of 645,397 inhabitants in the heart of Europe with deep historical roots, which is constantly being developed and rediscovered. Rich in historical landmarks, amazing unspoilt natural landscapes, fabulous castles, sports in action, culinary highlights, wellness and relaxation.
Luxembourg is a multilingual country. In everyday life, Luxembourgish is spoken, which is originally a German (Franconian) dialect that has been the official language of the country since 1984. The official languages are Luxembourgish, French and German.
Luxembourg is one of the richest countries in the world. Luxembourg has the highest minimum wage among the member states of the European Union, and the country ranks third in the world in average wages after Switzerland and Singapore. The unemployment rate is 5-6%. And it is not surprising that Luxembourgers consider themselves the richest inhabitants of the European Union. The high standard of living and the location of the country in the heart of Europe attract many foreigners, who number over 35% of the population.
Because of its membership in Schengen, as well as its neighbouring countries, the country allows free border crossing without requiring a passport or other personal data. However, imports of goods from neighbouring countries are checked by the Luxembourg police.
Luxembourg, with its financial stability and wealth, provides an exceptional opportunity for wage analysis. In this episode, we will look at minimum and average earnings, the variety of professions and how wages are distributed in the country. Also, we will look at taxes on income and the cost of living in Luxembourg.
Minimum wage
In Luxembourg, wages are regulated by the government through laws, collective agreements, the Ministry of Employment and the employer himself. In law, the government establishes the level of minimum wages for skilled and unskilled workers. Collective agreements drawn up by representatives of trade unions, employers and employees for a specific sector define working conditions, social support measures, length of leave and many other nuances.
The number of working hours per week is a maximum of 40. Weekend work is paid 2 times the usual salary and is possible only with the consent of the employee himself. Annual leave is at least 25 working days, maternity leave is 3 months, and wages are paid throughout the period.
According to official government data, the minimum wage in Luxembourg in 2024 is 2 447 euros per month for unskilled workers and 2 936 euros for skilled workers. The last salary increase is from February 1, 2024. This means that the minimum wage in Luxembourg will rise again.
Average salary
According to the National Institute for Statistics and Economic Research, the average salary in Luxembourg in 2024 is approximately 59 000 euros per year or 4 918 euros per month, and it all depends on what field and profession the employee works in, his qualifications and experience and, finally, age. (highest indicator in the European Union).
With this we can say that highly skilled workers in Luxembourg usually receive higher wages. Take as an example, several industries and the order of average wages for skilled professionals and unskilled workers.
IT specialists – from 84 000 euros per year or 7 000 euros per month.
Education – 68 000 – 100 700 euros per year or 5 667 – 8 392 euros per month.
Healthcare – 120 000 euros per year or 10 000 euros per month.
Public administration – 104 000 euros per year or 8 667 euros per month.
Sellers, waiters – 30 000 euros per year or 2 500 euros per month.
Construction – 25 000 euros per year or 2 083 euros per month.
Cleaners – 20 000 euros per year or 1 667 euros per month.
It should be noted that the financial and insurance sectors occupy a dominant position in the Luxembourg economy. This strand accounts for 13% of employment. 9% are engaged in scientific and technical activities. This means that almost one in five employees in Luxembourg is employed only in these sectors. For comparison, in Belgium it is 8%, in Germany – 9%, in France – 11%.
Income tax
Income tax in Luxembourg, as in the majority of European Union member states, is levied on a progressive scale. This method of calculation and payment allows to ensure a certain social justice: richer groups of the population pay more taxes, and less socially protected citizens pay less. Higher income tax is levied on higher income earned by an individual.
The fiscal year in Luxembourg runs from 1 January to 31 December. In 2024, Luxembourg’s personal income tax remains unchanged, with a progressive rate of 8-42% applied. No income taxes are levied on residents whose income does not exceed EUR 11 265 per year.
Social security contributions are calculated separately and are about 20% of the gross salary.
The cost of living
Accommodation in Luxembourg is expensive, especially in Luxembourg City. A wide variety of accommodation is available, with the city of Luxembourg having a good choice of apartments and houses. In rural areas you will find more houses, but apartments are still predominant.
Here are the monthly rental prices for:
One-bedroom apartment outside the city center: €1,100 – €1,900
Expenditure on food, groceries and restaurants
Cheap restaurant – €10.00 – €25.00
Homebrew: €4.00 – €6.50
Coca-Cola/Pepsi: €2.00 – €5.00
1L milk: €0.70 – €1.69
Bread: €1.75 – €5.00
12 eggs: €1.50 – €6.00
1 kg chicken fillets: €4.86 – €19.00
1 kg of beef: € 9 – € 25
1 kg of apples: € 1 – € 4
1 kg white rice: € 1 – € 4
Cost of transport
From 29 February 2020, Luxembourg launched an ambitious and unique public transport programme, the first of its kind in the world. From that day, public transport in the country becomes free. Anyone, including Luxembourgers, foreigners and tourists, can travel for free by buses, trains and trams throughout the country. However, if you wish to travel in first class, there is a surcharge at which
One-way ticket (local transport) – up to € 2
Monthly card – up to € 25
Cost of Internet
Internet in Luxembourg is excellent.Prices for starting from 66 € to 71 € per month
Expenses for clothing, personal belongings, fitness and leisure
Here are some useful prices:
Pair of jeans (Levi’s 501 or similar): € 50 – €120
Summer dress: €25 – €70
Running shoes (sneakers): €600 – €140
Business shoes: €60 – €300
Gym membership: €20 – €80
Cinema (cinema) ticket: €10 – €16
Visit to the doctor (15 minutes): €47
Shampoo: €4
Deodorant: €4
Toilet rolls: €2.5