Luxembourg's average salary overshadows all others

According to the latest Eurostat report, published on Monday, Luxembourg is far ahead of Denmark (€63,300) and Ireland (€50,300). The other countries of the Greater Region are even further behind: in Belgium the average salary is around €48,700, in Germany €44,400 and in France €40,000.

In addition to that, within one year, the salary in Luxembourg increased by almost €4,000.

The European average is €33,500 per year, while Portugal is at the lower end of the scale with about €19,300 per year.

Luxembourg not only offers the highest salaries in Europe, but also the highest minimum wage, which is about to increase.

© Eurostat

A good salary, but...

The fact that Luxembourg stands out so much on the salary chart is partly due to the special nature of its economy. Not only does Luxembourg offer a full-time job at 40 hours a week, but it is also home to a major financial centre. The finance and insurance sector employs more than 52,000 workers, or about 11% of the country's jobs.

Together with public sector jobs, which are also among the best paid sectors, the average is therefore pulled upwards.

However, this average must be put into perspective. Although Luxembourg is the European champion in terms of purchasing power and can also achieve equal wages for men and women, it has to contend with major inequalities. This goes so far that two out of five Luxembourgers say they have to tighten their belts. Many of them are particularly worried about their housing.

With a salary of €6,000 as calculated by Eurostat, the median standard of living in 2021, as calculated by Statec, was €3,628. And the poverty line was set at €2,177 per month. This meant that 19.2 % of the population was affected by poverty.