Where is the line between poverty and wealth in Luxembourg?

What is a good salary? Is it one that allows you to spend freely, places you at the top of the social hierarchy, or simply meets your needs?

To shed light on these questions, our colleagues from RTL Infos reached out to the General Inspectorate of Social Security (IGSS) to create a "salary scale" for 2024. This scale categorises salaries in Luxembourg into 10% brackets, ranging from the lowest to the highest earners.

Our colleagues produced two salary scales: one for the private sector and another for the public sector. These scales reflect gross salaries, based on full-time equivalent basic salaries, excluding bonuses and other benefits. The IGSS notes that the salaries of temporary workers and cleaning staff in the private sector are not included.

Click below to take the test (in French):

Private sector salary scale:

Public sector salary scale:

Nearly 40% of public sector employees earn more than €10,000 gross per month

What do these figures reveal? Firstly, Luxembourg boasts the most generous salaries in the EU. The median gross salary – where 50% earn less and 50% earn more –  is €4,235 in the private sector and €9,378 in the public sector, with an overall median of €4,495 across all sectors.

Luxembourg, a paradise for civil servants? / © Shutterstock

Another notable observation is the high pay within Luxembourg's civil service:

• The lowest 10% of earners in the public sector make up to €5,471 gross per month, compared to €2,796 in the private sector. Conversely, the top 10% of earners in the public sector start at €13,566, whereas in the private sector, this figure is €8,975. These figures represent gross basic salaries, excluding the numerous bonuses and benefits common in the civil service.
• Between 2023 and 2024, median pay increased by 6.3% in the private sector and 10.3% in the public sector, partly due to several wage indexations during this period.
• In 2024, nearly 40% of public sector employees will earn at least €10,000 gross per month, up from almost 30% last year.

However, it is important to remember that not everything is rosy in Luxembourg. The at-risk-of-poverty rate in 2022 was 17.4%.

Changes in the at-risk-of-poverty rate in the EU, Belgium, France, Germany, and Luxembourg. / © Source: Eurostat

This brings up a final question: if there is a defined poverty line, why do we never discuss a wealth line?

What does it mean to be 'rich' in Luxembourg?

It is a curious thing: despite having one of the highest standards of living and being labelled as the richest country in the world, Luxembourg's definition and quantification of wealth remain elusive. What does it truly mean to be "rich" in Luxembourg?

In France, the Inequalities Observatory has set the wealth threshold for an individual at €3,900 net per month in 2024. This figure is derived by doubling the median standard of living, which takes into account income, taxes, and family composition.

According to the latest data from the National Institute of Statistics and Economic Studies (STATEC), the median standard of living for an adult in Luxembourg was €3,745 in 2022. Extrapolating from this, the wealth threshold in Luxembourg in 2022 would be approximately €7,490 net per month.

The (theoretical) wealth line: €7,490/net per month per adult in 2022. / © seuil richesse lux

However, it is important to approach this figure with caution. Wealth is influenced by various factors beyond income, such as property and financial assets, family circumstances, and career status. In fact, when contacted by our colleagues in 2023, STATEC declined to calculate a specific wealth threshold, stating that, similar to the poverty line, there is no universally accepted method for determining wealth.

As a result, discussions around wealth remain vague and somewhat taboo. Nevertheless, there is a study that suggests that approximately one in every 15 residents in Luxembourg is a millionaire – yet another world record!