Luxembourg could proudly claim the title of European Champion when it comes to wage equality between men and women.
Since 2021, the country has achieved pay equality: women are even slightly better paid than men (the wage gap was estimated at -0.9 percent in 2023 across all sectors, excluding the public sector), whereas in the rest of Europe, women gain 12 percent less than men.
A good point for Luxembourg, right? Well, it all depends on how you calculate it. Depending on the method used, the country can either be seen as highly compliant with pay equality or still far from achieving it.
If we focus solely on average hourly wages, women actually earn more than men, with a difference of 22 cents per hour in 2022. Using this criterion, Luxembourg can claim that the ‘gender pay gap’ has been addressed.
However, when we consider the median hourly wage – which divides the population into two equal halves (one earning more, the other less) – women still have the advantage.
That’s another positive sign for the country. But, if we take a look at earnings over the course of an entire year, women still earn less than men in reality.
According to data collected by Statec, for two equivalent full-time jobs in 2022, a man earned an average of €75,847 per year, while a woman earned €72,470 -- meaning €3,377 less per year. The difference is almost entirely due to end-of-year bonuses, which seem to be more significant with men than women.
If we now consider actual salaries (for both full- and part-time workers), the gap is even larger: in 2022, men earned an average of €73,154 as opposed to €62,975 for women. Here, we’re looking at a difference of over €10,000, mostly explained by two major disadvantages that women face:
When examining Luxembourg’s highest earners, the salary gap between men and women becomes even more pronounced. Among the top 1 percent of earners, the highest-paid men still make 27 percent more than their female counterparts. This disparity highlights that, even at the highest levels of income, gender inequality persists.
So pay equality does technically exist... but it depends on how you calculate it.
Beyond salary equality, women in Luxembourg face additional challenges in the labor market. They are more likely than men to put their careers on hold, which often results in less career advancement and lower overall earnings. In 2022, nearly one in three women (30.9 percent) were employed part-time, compared to only 7.1 percent of men.
This discrepancy in part-time employment creates a vicious cycle: women earn less and have fewer opportunities for career progression. As a result, women held just 32 percent of managerial positions in Luxembourg in 2022, underscoring the continued gender imbalance at higher levels of leadership.
These disparities continue to have a long-lasting impact into retirement. Women, having earned less over the course of their careers and often facing interruptions in their work lives, contribute less to pension funds. As a result, they end up with lower pensions than men. A woman who has spent her entire career in Luxembourg can expect an average monthly pension of €3,000, compared to €4,500 for a man.
However, not all is bleak. Luxembourg remains one of the most progressive countries in Europe, and its efforts to address gender equality are ongoing. Despite some setbacks, such as the lack of gender balance in the 2023 government appointments, the country has launched significant social initiatives beyond pay equality. These include free contraception, the removal of the mandatory reflection period for abortion, and a ban on virginity tests and certificates. Moving forward, it will be crucial for political leaders to maintain this momentum and continue advancing gender equality.
