Wage levels

Attractive wages

Did you know that Luxembourg is at the top of the list of OECD countries when it comes to average wage? At 80,913 dollars, Luxembourg is ahead of Iceland, ranked second, and Switzerland, 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 2,637.79 euros per month;
• the qualified minimum wage that amounts to 3,165.35 euros per month;

Cost of living and incomes in Luxembourg

The level of disposable household income in Luxembourg has risen sharply. In 2023, this increase reached 4.6%, taking the average income to close to 50,000 euros, placing the Grand Duchy in first place among OECD countries! Eurostat attests to the high material well-being of households, with the highest purchasing power in the EU.

The financial burden associated with housing - which currently stands at 26,141 euros per year - represents the largest household expenditure. It is followed by costs related to transport and food, amounting to 9,807 euros and 6,870 euros respectively. Visit the Statistics Portal for details on average annual expenditures per household.

The index - guardian of social peace

In order to maintain purchasing power, Luxembourg has introduced an automatic mechanism for indexing salaries to the cost of living. A new index bracket is applied when the half-yearly average of the consumer price index exceeds the previous reference by 2.5%. This index is calculated from a basket of almost 7,700 prices for goods and services collected by STATEC surveyors, plus 90,000 additional data from checkouts at various supermarkets. When a new tranche is triggered, all wages, salaries and pensions are automatically adjusted by 2.5%. This mechanism helps to uphold stable social harmony in the Grand Duchy!