Cost of living

The risk of poverty: a reality nevertheless

The guaranteed minimum income ('revenu minimum garanti') is a tool in the fight against social exclusion

The poverty risk rate is defined as the percentage of people with an income of less than 60% of the equivalent median income. In the Grand Duchy, in 2015, the equivalent median income was 35,270 euros per year; this means the poverty risk threshold stood at 21,162 euros for the year. Unlike in previous years, the Grand Duchy's poverty risk rate dropped considerably between 2014 and 2015. Moreover, standing at 15.3%, the rate is far from the 17.2% average for the euro area. Among the area's members, the Grand Duchy is the country with the rate that has dropped the most (-6.7%). In the long term, however, it is among the countries where the risk of poverty is increasing considerably, with an average increase of 1.1% per year since 2005. This puts it ahead of all its neighbours except Germany, where the risk rate has risen substantially over the past ten years (+3.2% per year on average).

A guaranteed minimum income

In Luxembourg, one of the main ways of fighting against poverty and social exclusion is the guaranteed minimum income (RMG). Indeed, people whose income is below a certain threshold, considered a minimum subsistence level, benefit, thanks to the RMG, from various types of financial aid, which are supposed to enable them to recover. 

Award of the RMG is subject to age, residence and income conditions. Please visit the Citizens portal for more information.

  • Updated 30-07-2018