Luxembourg is often perceived as the ideal destination for earning a very good wage, particularly from across the border. However, despite boasting the highest minimum wage in Europe, the Grand Duchy falls short in ensuring a “decent living standard” for all its residents. This disparity leaves certain employees particularly vulnerable. As a result of its initiatives concerning the minimum wage, the Chamber of Employees found that many sectors of employment frequently paid salaries at or near the social minimum wage.
According to data from March 2022 provided by the IGSS (General Inspectorate of Social Security), the Chamber counted 439,000 employees, with 66,000 of them receiving the minimum wage. This constitutes 15% of the total workforce. Among them, 38,000 employees are paid €2,570.93 gross per month (for unqualified workers), while 28,000 qualified workers earn a minimum wage of €3,085.11. These figures are far from the earnings required to afford housing in Luxembourg.
Further reading: Study highlights wage disparities among nationalities in Luxembourg
Not all sectors are equal in terms of salary either. Almost one in two employees in the hospitality sector earns minimum wage - 48.7% of staff - while the sector represents just 4.7% of the country’s employees.
The agricultural sector also pays relatively low salaries, with 37.9% of employees earning the legal minimum wage. Retail companies are similar, with three out of ten employees on minimum wage.
Conversely, the public sector, construction, industrial sector, services, IT and finance have the fewest staff earning minimum wage, with fewer than 13% of employees earning the social minimum.
In addition, although the following sectors employ roughly the same proportion of Luxembourg’s employees, commerce (11.9% of employees), construction (11.7%) and financial activities (11.7%) have obvious differences:
