Study highlights wage disparities among nationalities in Luxembourg

A recent study carried out by the Chamber of Employees highlights inequalities between nationalities: in Luxembourg, the Portuguese and the French are more likely to be on the minimum social wage than other nationalities. According to the report, the current minimum salary does not suffice to guarantee a "decent living standard" and hides inequalities within society, which the Chamber says affects thousands of workers.

In March 2022, the General Inspectorate of Social Security counted around 66,000 employees in Luxembourg that were paid close to the minimum social wage. While representing one in five employees in the country (21.2%), proportionally fewer Luxembourgers are paid the minimum wage. Conversely, cross-border commuters represented almost one in two employees at the time (47.6%).

Proportionally speaking, cross-border employees were under-represented on the unskilled minimum wage (38.4%) and over-represented on the qualified minimum wage (58.7%). As a result, while 13% of Luxembourg residents are paid the minimum wage, so are 14.8% of cross-border commuters and even 17.1% of residents of foreign nationality.

Salary is highly dependent on employment sectors, where, for example, more Luxembourgers than foreign nationals are employed as civil servants.

Portuguese and French more likely to be paid the social minimum

By analysing social security data, the Chamber of Employees notes that "the situation is far from homogenous".

If the number of employees in the country were reduced to 100, there would be (approximately) 24 Luxembourgers, ten Belgians, ten Germans, 26 French, twelve Portuguese and 15 workers of another nationality.

In a balanced society, these numbers should be the same if we zoomed in on employees paid the minimum social wage. But, this is not the case:

• At the non-qualified minimum wage (€2,570.93 since 1 January 2024), there are 23 Luxembourgers, four Germans, two Belgians, 20 French, 20 Portuguese, and 15 of other nationalities.
• At the qualified minimum wage (€3,085.11 since 1 January 2024), there are 17 Luxembourgers, eight Germans, eleven Belgians, 31 French, 15 Portuguese, and 24 other nationalities.

By nationality, Portuguese workers are the least well-paid in Luxembourg: one in five Portuguese workers are paid the minimum wage. This compares with 14.3% of French nationals (cross-border commuters and residents combined). Among Luxembourgers, the rate falls to 13%.

Portuguese women experience significant inequality, with one in four working in Luxembourg is paid the social minimum wage. French (18.5%) and Belgian (16.5%) women are also at a disadvantage. Only Luxembourg women escape the rule as they are the only ones to be paid more than their fellow citizens.

In 2022, one Portuguese in five (21.6%) was paid the minimum wage. / © Capture d'écran CSL