Luxembourg is often considered as a very attractive country from a salary point of view and it is partly for this reason that many French, Belgian or German residents cross the border every day to work there.

What is the current situation and what can you expect to be paid in 2021? This article provides you a lot of relevant information to negotiate your salary in Luxembourg!

the highest minimum social wage in the European Union.

Like most European countries, Luxembourg has introduced a minimum social wage. This wage, set by law, helps to reduce inequalities and improve the living conditions of workers. It is regularly re-evaluated.

The minimum wage is of course very different from country to country and their standard of living.

While in some Eastern European countries such as Bulgaria, Romania or Hungary, the minimum wage is below €500/month, it is above €1,500 in countries such as France, Belgium and Germany.

Luxembourg is the European country with the highest social minimum wage, exceeding €2,000 per month.

the minimum wage has been revalued on 1 October 2021.

The Luxembourg social minimum wage increased by 2.5% on 1 October 2021 following a change of index (this is a consumer price index which takes account of inflation in the country); it thus rose from €2,201.93 to €2,256.95 gross per month.

This means that whatever type of job you have, your monthly pay cannot be less than this amount (unless you are under 18 years old).

Depending on whether an employee is considered skilled or unskilled, the amount of the minimum wage varies. The minimum wage for qualified employees is 20% higher than for unqualified employees, i.e. €2,708.35 per month from 1 October 2021. This requires proof of having obtained a diploma.

A person whose level of education is lower than the CATP (certificate of technical and vocational aptitude of technical secondary education) or the DAP (diploma of vocational aptitude) is considered to be unskilled.  However, certain conditions of seniority may allow employees without a diploma to benefit from the qualified minimum wage.

If you have studied outside Luxembourg, your diploma will have to be recognised there in order to be considered a qualified employee.

lower charges than in neighbouring countries.

In addition to having higher wages than its neighbours, Luxembourg also has much lower social security contributions.

The contributions deducted from wages (to finance retirement, sickness, unemployment, etc.) are around 13%, whereas they exceed 20% in France.

This means that for the same salary, you will have more money left at the end of the month if you work in Luxembourg than in France!

clear differences in salaries between sectors.

A recent study by the Statec (Institut national de la statistique et des études économiques du Grand-Duché de Luxembourg) showed that the average salary in Luxembourg varies enormously depending on the sector of activity.

The most lucrative sector is finance and insurance, with an average annual salary approaching €100,000. Education and scientific and technical activities also top the list.

On the other hand, the hotel and catering, administrative and construction sectors lag behind (average annual salary of less than €40,000).

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