Luxembourg minimum wage

Luxembourg minimum wage: Average salaries in Luxembourg

Comments0 comments

What is the minimum wage in Luxembourg? Learn about Luxembourg's minimum wage per hour and average salaries in Luxembourg to help calculate your expected salary in Luxembourg.

Foreigners looking for jobs in Luxembourg can compare offered salaries against Luxembourg's minimum wage. The minimum wage Luxembourg is the highest minimum wage in the EU in 2017, set at EUR 1,999 per month, according to Eurostat data.

The statutory minimum wage in Luxembourg depends on the qualifications of the employee, in terms of whether they are classified as a ‘skilled’ worker or not.

This guide explains the minimum wage in Luxembourg per hour and what to expect from salaries in Luxembourg:

 
Minimum wage Luxembourg

Minimum wage in Luxembourg 2017

Luxembourg's minimum wage (often known as the guaranteed minimum wage, or GMW) is assessed every two years by the government. Luxembourg’s minimum wage increased by 2.5 percent at the start of 2017, after the implementation of a new work code law and a rise in the cost of living index.

The minimum wage of EUR 1,988.59, however, rises by 20 percent for those classed as ‘skilled workers’ and is 20–25 percent less for those classed as adolescent workers.

This means a skilled worker aged 18 or older must be paid 20 percent more than the standard minimum wage, totalling EUR 2,398.30 per month, compared to EUR 1,998.59 for an unskilled worker aged 18 or over.

Workers aged 17 or 18 face a 20 percent deduction from the standard rate and must be paid at least EUR 1,598.87, while those aged 15 to 17 face a 25 percent deduction and a minimum wage of EUR 1,498.94

Even workers who earn above the minimum wage are affected by the national indexation of salaries, a barometer on which employers must adjust the wages they pay in line with the cost of living in Luxembourg. If the consumer price index rises or falls by 2.5 percent during a period, salaries in Luxembourg must be adjusted by this percentage.

Read Expatica's guide for more information on employment contracts and wages in Luxembourg.

Luxembourg minimum wage per hour

With the standard working week set at 40 hours per week, Luxembourg's minimum wage per hour can be approximately calculated as follows:

Wage category

Luxembourg minimum wage per hour

Skilled workers EUR 14.99
Unskilled workers EUR 12.49
17–18 years EUR 9.99
15–17 years EUR 9.37

Luxembourg's minimum wage for skilled and unskilled workers

As mentioned above, skilled workers in Luxembourg are entitled to a higher minimum wage than unskilled workers.

According to guidelines set out by the government, an employee must have qualifications or experience equivalent to one of the following levels to be considered ‘skilled’:

  • Education – a recognised official certificate for their profession. This can be a vocational skills certificate or vocational diploma.
  • Manual skills and experience – a manual skills certificate or certificate of vocational ability and two years of relevant experience in the profession.
  • Preliminary certificates and experience – a preliminary technical and vocational certificate and five years of experience.
  • Experience – if they have no certificate, the employee must be able to provide proof of 10 years of practical experience.
  • If no certificate exists – if the industry doesn’t have relevant qualifications, the employee needs to have six years of practical experience.

Luxembourg minimum wage per hour

Minimum wage in Luxembourg: collective agreements

Some industries decide minimum salaries and working conditions based on collective agreements between representatives of employers and employees.

These agreements tend to exist in industries that have non-standard working systems, for example, businesses that need to be open 24/7 and those that operate unusual or antisocial hours.

If the relevant industry has a collective agreement in place, the minimum salary on offer must not be lower than the national minimum wage.

Conditions for salaries in Luxembourg

Employers must pay men and women the same salary in Luxembourg for equivalent jobs, and people on fixed-term employment contracts must be paid the same as those on permanent ones. The regulations also cover part-time employees, who should be paid at the same level on a pro-rata basis.

Working hours in Luxembourg are limited to 40 hours in a standard working week, after which employees must be paid overtime salary. While this rule applies to the majority of people working in Luxembourg, it doesn’t cover directors, managers or the self-employed.

The legal maximum working day is 10 hours, and the Ministry of Employment must approve any overtime. The government allows some sectors to employ staff on Sundays, as long as the work is voluntary and is paid at double the normal salary.

While it doesn't exist in all industries, some employers pay a 13th month bonus to their employees at the end of the year or at Christmas. Alternatively, others offer a profit sharing bonus based on how well the company does in the year.

Salaries in Luxembourg

Best salary in Luxembourg: the highest paid jobs

According to an OECD Better Life Initiative report in 2016, 67 percent of workers aged 15 to 64 in Luxembourg had a paid job and only 3 percent worked ‘very long’ hours.

Research by Luxembourg's statistic office Statec shows that employees in financial services and insurance earn the highest salaries in Luxembourg, followed by electricity production workers, science and technical professionals, IT workers and teachers. The lowest paid jobs in Luxembourg, meanwhile, were in the accommodation and food sectors.

While not the top paid job in the country, OECD's report also showed that secondary school teacher salaries started at EUR 73,700, putting Luxembourg at the top of the earnings list across major developed countries. Read more on how to find work in Luxembourg.

Information on salaries in Luxembourg

 
Expatica explains income tax in Luxembourg to help you calculate your net salary in Luxembourg. You can also find an online Luxembourg salary calculator here.

Compare the minimum wage in Luxembourg to other countries

The Organisation for Economic Co-operation and Development (OECD) provides an overview of statistics and comparative charts here. You can also read Expatica's in-depth guides to minimum wages in other countries:

 

Click to the top of our guide to Luxembourg's minimum wage.

 

Expatica
Updated 2017.

 
 


Comment here on the article, or if you have a suggestion to improve this article, please click here.

If you believe any of the information on this page is incorrect or out-of-date, please let us know. Expatica makes every effort to ensure its articles are as comprehensive, accurate and up-to-date as possible, but we're also grateful for any help! (If you want to contact Expatica for any other reason, please follow the instructions on this website's contact page.)


Captcha Note: Characters are case sensitive
The details you provide on this page will not be used to send any unsolicited e-mail, and will not be sold to a third party. Privacy policy .

0 Comments To This Article