Eurostat's newest figures show that people who work in the Grand Duchy earn by far the most in the European Union.
Based on data from 2022, people who work full-time in Luxembourg earn an average of €82,969 per year, making it the highest income across the EU. In contrast, the EU average gross income of €39,808.
The contrast to neighbouring countries was also significant in 2024: in Belgium, which comes in fourth place, people earn an average of €59,632 a year, while in Germany, two places behind, the average annual salary is €53,792. France trails well behind with €43,790 a year, just one place above the EU average and only just still in the top 10 of the ranking. Alongside Luxembourg and Belgium, Denmark (€71,565), Ireland (€61,051), and Austria (€58,600) also make it into the top five.
High salaries attract cross-border commuters
Based on income alone, it is hardly surprising that hundreds of thousands of people cross the borders every day to earn their living in the Grand Duchy. In their comparison, the Trier-based newspaper Volksfreund also note that although Luxembourg is still well ahead in terms of wages, they have risen less strongly in percentage terms in recent years than in many other EU countries, including Germany. Recently, wages in Luxembourg have risen by 3.4%, while the continental average is 5%.
Average annual salary does not give a clear picture
However, comparing salaries alone distorts the picture of the situation, because the cost of living also has to be taken into account. And in that respect, prices in Luxembourg are higher than in Germany, France, or Belgium.
Moreover, the single figure of the average annual salary does not say anything about how that money is distributed. Even in the Grand Duchy there are many people who earn nowhere near €83,000 a year.
Someone who earns the unskilled minimum wage and does not receive supplements such as bonuses or a 13th month salary gets just €30,851 a year and is therefore far below the average income. This is why it is important to look at the median wage and not only the average wage.
According to STATEC, the median wage in Luxembourg in 2024 was €58,126, clearly below the national average wage but still far above the median wage in other EU countries.
For the median wage, the middle value of all wages is taken once they are arranged from highest to lowest. This means that the highest and lowest wages influence this value less than they do the average wage. Put simply, half of employees earn less than €58,126 and the other half earn more.
Annual salaries under €20,000
Incidentally, at the bottom of the table are Hungary with €18,461, Greece with €17,954 and Bulgaria with €15,387 a year.
