Average Salary in Luxembourg 2022

How much money can you earn in Luxembourg as an employee?

The average monthly salary for a worker in Luxembourg is 4,910 EUR. Employers pay between 1,240 and 21,900 EUR per month in wages.

It includes accommodation, transportation, and other perks in the monthly wage. Depending on a person’s field of work, salaries might vary greatly. See below for individual job title wages if you’re interested in the compensation of a certain position.

The highest-paying jobs in Luxembourg are in the finance and banking sector. Some of these positions include investment bankers, financial analysts, and wealth managers. These workers can earn up to 16,000 EUR per month.

Some of the other top-paying jobs include lawyers, doctors, and engineers. These professionals can earn between 9,000 and 13,000 EUR per month.

The lowest-paying jobs are in the hospitality and retail sectors. These positions typically pay between 1,240 and 2,500 EUR per month.

Keep in mind that these are only averages. Salaries will differ depending on experience, education, employer, and other factors.

Luxembourg’s Wage Distribution

Salary Scale

A month’s salary in Luxembourg might vary anywhere from 1,240 EUR to 21,900 EUR. The median salary is 5,560 EUR. These figures come from the latest Eurostat report on salaries in Luxembourg.

Luxembourg has one of the most equal wage distributions in the EU. The Gini coefficient, which measures inequality, is just 0.29. This means that salaries are more equal in Luxembourg than in most other countries.

Median Pay

The median monthly wage is 5,210 EUR, which implies that half of the population (50%) earns less than 5,210 EUR, while the other half earns more than 5,210 EUR. The median salary is lower for women than it is for men. The gender pay gap in Luxembourg is 6.9%, which is lower than the EU average of 16.3%.

Luxembourg does not have a minimum wage. Instead, wages are set by collective bargaining agreements between employers and unions. These agreements cover around 90% of workers in Luxembourg.

Percentiles

Over 75% of the population earns more than 2,900 EUR per year, while 25% earn less. The top 10% of earners make more than 9,760 EUR a month, while the bottom 10% earn less than 1,580 EUR.

These figures show that salaries in Luxembourg are quite high compared to other countries. In fact, Luxembourg has the second-highest average salary in the EU, after Switzerland.

If you’re considering moving to Luxembourg, it’s essential to know that salaries are high but so is the cost of living. Expenses such as housing, food, and transportation can be quite expensive in Luxembourg.

What is the difference between the average and the median in terms of compensation?

Both the average income and median wage are indicators. The average is the sum of all incomes divided by the number of people. The median is the middle value when all incomes are sorted from the lowest to the highest.

Average salary in Europe

Income inequality is an important factor to consider when interpreting average and median wages. If there is a large gap between the two values, it means that some people earn much more than others.

In Luxembourg, the average wage was €61,309 in 2018 while the median wage was €39,744. This means that there is a significant difference between the two values, indicating a high level of income inequality.

Comparing Luxembourg salaries by Years of Working Experience

How does pay increase throughout time?

Interestingly, salaries in Luxembourg also differ based on years of experience. For example, those with 0-2 years of experience make a median salary of €42,800 per year.

This jumps to €60,000 for those with 3-5 years of experience and then again to €67,200 for employees with 6-8 years under their belt. Finally, workers with 9-11 years of experience earn €75,000 per year on average.

These figures show that there is a clear progression in salary as workers gain more experience. This is to be expected, as those who have been working for longer will have had the chance to develop their skills and knowledge and prove themselves to be valuable employees.

However, it is worth noting that the salary increases level off after 8 years of experience. This suggests a ceiling on how much workers can earn in Luxembourg, regardless of how long they have been in the workforce.

Luxembourg Salary Comparison by Degree

How much of a difference does education make in terms of pay?

According to our data, a person working in Luxembourg with a Bachelor’s degree earns 24% more than someone with a High School diploma.

Those holding a Master’s degree can expect to earn 9% more than their counterparts with a Bachelor’s degree. And those with doctorate degrees enjoy the highest average salary, earning 19% more than those with Master’s degrees. Those with some college experience but no degree earn the least, making 5% less than those holding a High School diploma.

When it comes to furthering one’s education, there is a clear financial incentive to do so in Luxembourg. Those with higher levels of education earn significantly more than those without degrees.

Luxembourg Income Comparison by Gender

Across all industries, the average salary for men in Luxembourg is 5% more than the average salary for women. When we compare average salaries by industry, however, we see a different story.

In some industries, such as construction and information technology, men earn significantly more than women. In others, such as health care and education, women earn more.

While the average salary for men is higher than the average salary for women, it’s important to remember that this is not always the case. In some industries, women earn more than men. It’s also worth noting that salaries can vary significantly from one industry to the next.

When considering a career in Luxembourg, it’s important to research salaries in your desired field. This will help you ensure that you’re being paid what you’re worth and that you’re able to support yourself financially.

Annual Income Increase in Luxembourg

In Luxembourg, how much do people be paid each year? How frequently are workers given raises?

Every 17 months, Luxembourgish workers can expect to see their wages rise by around 8%. This means that over the course of a career, salaries will more than double.

There are a number of factors that contribute to this high salary level. First, Luxembourg is a wealthy country with a strong economy. This provides opportunities for high-paying jobs. Second, the cost of living in Luxembourg is relatively high. This means that workers need to be paid more to maintain their standard of living.

Also, it is important to note that salaries in Luxembourg are taxed at a high rate. This results in lower take-home pay for workers. However, the overall cost of living is still relatively low when compared to other countries in Western Europe.

Overall, workers in Luxembourg can expect to earn a good salary. However, they will also need to contend with a high cost of living.

Yearly Luxembourg Growth Rates by Industry 2022

  • Healthcare – 5%
  • Energy – 7%
  • Banking – 9%
  • Telecommunications – 11%
  • Industry – 13%
  • Information Technology – 15%

The average salary in Luxembourg will grow at different rates depending on the industry. Healthcare is expected to grow by 5%, energy by 7%, banking by 9%, telecommunications by 11%, and industrial by 13%. Information technology is expected to have the highest growth rate at 15%.

These are all positive growth rates, meaning that salaries in these industries are expected to increase. This is good news for those who are looking for a job or a career change in any of these industries. There are many opportunities for those with the right skills and qualifications.

So if you’re thinking of a career change, now is a good time to research which industry might be right for you.

Salary Growth in Luxembourg by Level of Experience

Junior workers in Luxembourg earn about a 3-5% salary increase in their first year on the job. With each additional year of experience, they can expect to earn an additional 1-2% in salary.

Experienced workers (5-10 years of experience) can expect a salary increase of around 2-4%. Workers at the management level can expect to earn 5-8% more than the previous year.

In terms of bonuses, junior workers can expect to receive around €1,000 per year, while experienced workers can expect to receive up to €5,000 per year. Bonuses are typically awarded based on individual and company performance. Moreover, profit sharing is also a common form of bonus in Luxembourg.

In terms of benefits, the most common benefits include health insurance, pension plans, and paid vacation days. Other common benefits include gym memberships, mobile phone allowances, and company cars.

Overall, salaries in Luxembourg are on the rise. With a strong economy and low unemployment rate, workers are in a good position to negotiate for higher salaries and better benefits.

Rates of Incentive and Bonus Payments in Luxembourg

How frequently are bonuses given?

Among Luxembourg’s workforce, 44% reported receiving no bonuses or incentives in the year before, while 56% reported receiving at least one sort of monetary bonus.

Bonuses ranged from 2% to 7% of yearly compensation for those who received them. The most common bonus was an end-of-year payment, given to 31% of respondents. This was followed by a profit-sharing bonus (given to 29%), and a commission payment (given to 23%).

Various Sorts of Bonuses

Individual Bonuses Based on Employee Performance

This kind of bonus is given to employees based on how they performed over a certain period of time. If an employee meets or exceeds the expectations set by their employer, they may be eligible for a bonus. Individual bonuses can be given in addition to, or instead of, company-wide bonuses.

Bonuses Based on Company Performance

This type of bonus is usually given to employees of publicly-traded companies and is based on the company’s overall performance. For example, if a company’s stock price goes up, all employees may receive a bonus. This type of bonus is typically given out once a year.

Bonuses based on Goals Achieved

This type of bonus is given to employees who have helped the company achieve specific goals. For example, if a company wants to increase sales by 10%, all employees who contributed to that goal may receive a bonus. This type of bonus can be given out more than once a year and is often given in addition to individual bonuses.

Seasonal or End-of-Year Payouts

This type of bonus is given to employees at the end of the year, or during a slow period for the company. For example, many companies give out bonuses during the holidays. Seasonal bonuses are typically given in addition to other types of bonuses.

Comparison of Bonuses for Different Occupations

What makes a job worth the high pay and generous bonuses?

There are jobs that are highly sought-after for the high pay and bonuses that they offer.

Investment bankers are often in the news for the large bonuses they receive. They work long hours and are under a lot of pressure to perform well. Their job is to provide financial advice to clients and help them make money.

Financial analysts also have high-paying jobs with generous bonuses. They research companies and industries to provide recommendations to investors. They must have a deep understanding of financial markets and be able to forecast future trends. Salespeople can also earn high salaries and bonuses.

They are typically paid on commission, so their earnings depend on how much they sell. They must be excellent at persuasion and have a strong understanding of the products they are selling.

People in these jobs typically have a lot of responsibility and must work long hours. They also need to have specialized knowledge and skills. These factors all contribute to the high pay and generous bonuses that these jobs offer.

Luxembourg Seniority Bonuses

Luxembourg also has a system of seniority bonuses (primes de ancienneté), which are paid to employees who have been with a company for a certain period of time. These bonuses can be up to a maximum of 25% of an employee’s salary.

Luxembourg also has a system of special bonuses (primes spéciales), which are paid to employees in certain sectors or with specific skills. For example, there are bonuses for working in the construction industry, or for having a degree in engineering.

In addition to these bonuses, Luxembourg also has a system of allowances (indemnités), which are paid to employees who have to work in difficult or dangerous conditions. For example, there is an allowance for working in the mining industry, or for working with hazardous materials.

Pay for High-Potential Careers

Airlines / Aviation

  • Aerospace Engineer – 6,380 EUR
  • Air Traffic Controller – 5,610 EUR
  • Flight Attendant – 3,540 EUR
  • Pilot – 7,950 EUR

Healthcare

  • Doctor – 5,130 EUR
  • Dentist – 4,750 EUR
  • Nurse – 2,920 EUR
  • Pharmacist – 3,950 EUR
  • Veterinarian – 3,770 EUR

IT / Technology

  • Computer Programmer – 4,560 EUR
  • Software Developer – 5,390 EUR
  • Database Administrator – 4,170 EUR
  • Network Engineer – 4,520 EUR
  • Web Developer – 4,430 EUR

Business / Finance

  • Investment Banker – 6,040 EUR
  • Accountant – 4,270 EUR
  • Management Consultant – 5,950 EUR
  • Product Manager – 4,570 EUR
  • Human Resources Manager – 3,530 EUR

Sales / Marketing

  • Sales Representative – 3,430 EUR
  • Marketing Manager – 4,830 EUR
  • Advertising Account Executive – 3,070 EUR
  • Public Relations Specialist – 2,930 EUR

Luxembourg’s Standard Hourly Wage

For the average hourly salary in Luxembourg, you can expect to be paid around 28 EUR per hour. This standard hourly wage may differ depending on the specific job title and duties involved.

For instance, those working in management positions or highly skilled jobs may earn more than the average hourly salary. The minimum wage in Luxembourg is currently set at 2,071.60 EUR per month for full-time workers (40 hours per week).

This amount is subject to change in the future, so it’s important to stay up-to-date with the latest information.

Salary Comparison Between the Public and Private Sectors

Public sector workers in Luxembourg earn an average of 6% more than their private-sector colleagues. The average salary in the public sector is €61,857, compared to €58,159 in the private sector.

The highest salaries are found in the banking and finance sector, where workers earn an average of €79,416. Other high-paying sectors include information technology (€75,065), insurance (€70,146) and real estate (€69,632).

The lowest salaries are found in the hospitality and retail sectors, where workers earn an average of €33,333 and €36,111 respectively. Other low-paying sectors include education (€39,555), arts and entertainment (€40,435) and health care (€41,218).

There is a significant gender pay gap in Luxembourg, with women earning an average of 13% less than men. The average salary for women is €52,381, compared to €59,872 for men.

The highest-paid workers in Luxembourg are professionals with postgraduate degrees. They earn an average of €91,667 per year. Other high-earning groups include workers with master’s degrees (€67,143), bachelor’s degrees (€64,444) and doctorates (€61,905).

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