With low unemployment rates and thousands of newcomers each year, Luxembourg stands out as an attractive employment market. Some of the Grand Duchy's strong points include the high minimum social wage, the continuous growth of disposable incomes per household, as well as its unique wage indexation system.
Did you know that Luxembourg is at the top of the list of OECD countries when it comes to average wages? With 63,062 dollars, Luxembourg is ahead of Switzerland, ranked second, and Iceland, ranked third. In Luxembourg, the wage may under no circumstances be below the minimum wage threshold, which is defined by two levels:
- the non-qualified minimum wage that amounts to 2,071.10 euros;
- the qualified minimum wage that amounts to 2,485.32 euros.
Cost of living and incomes in Luxembourg
The level of households' disposable income is growing at a significant rate. In 2018, it stood at 5.7%, which places the Grand Duchy in second place among OECD countries. Eurostat in turn confirms the high material well-being of Luxembourg households by regularly publishing precise figures for the 28 Member States of the European Union.
The financial burden associated with housing - which stands at 22,188.40 euros - represents the most substantial expenditure of households. It is followed by costs related to transport and food, amounting to 8,344.40 euros and 5,348.50 euros respectively. Visit the Statistics Portal for details on average annual expenditures per household
The index - guardian of social peace
In order to preserve purchasing power, Luxembourg has implemented an automatic wage indexation system to the cost of living. The index is based on a basket of around 8,000 goods and services that are put in 255 categories. Each 2.5% portion helps the Grand Duchy maintain stable social peace!
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