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Calculating your salary in Luxembourg

Luxembourg’s strong economic growth attracts thousands of new workers every day.

It has some of the best opportunities and results in terms of quality of life, safety and culture. It is also known for its high salaries. Of course, salaries tend to vary from one business sector to another(1):

Business sector
Average salary
Industrials €52.951  
Construction €40.628  
Trade: car and motorcycle repairs €44.346  
Transportation and warehousing €53.248  
Hospitality and restaurants €31.994  
IT and communication €68.542  
Finance and insurance €89.732  
Specialised, scientific and technical activities €76.444  
Administrative and support services: real estate activities €36.657  
Civil service €76.192  
Teaching €86.374  
Healthcare and social action €62.422  
Arts, shows, recreational activities and other services €53.929  
TOTAL €59.744  

At €59,744 gross/year, Luxembourg's average salary is the second highest in the European Union.

Want to find out your net salary in Luxembourg? Platforms like lesfrontaliers.lu can help you calculate the precise amount. This will make it easier to manage your daily budget.

Good to know

In Luxembourg, the maximum legal working time is 40 hours per week.

Taxes in Luxembourg: how do they work?

In Luxembourg, income taxes are paid as you earn through a withholding tax system. As an employee in Luxembourg, you’ll receive a tax card. This will determine how much tax to be paid on your income.

It contains all information required to calculate your income tax:

  • your tax bracket;
  • the withholding rate;
  • any deductions and allowances to be subtracted.

To learn more about Luxembourg’s specific tax benefits(2), take a look at our guide to tax deductible products.

Did you know ?

Are you starting your first job in Luxembourg on 1 October and want to know how your tax will be calculated?

To determine how much tax you’ll pay, employers simplify the process by assuming you’ll earn the same amount each month of the year. 
If you start work in the middle of the tax year, amounts will need to be recalculated at the end of the year. This means that you could reclaim a large portion of tax paid by requesting an annual statement from the Luxembourg Inland Revenue service.


Filling out your Luxembourg tax return for the first time? Our tax guide will help you through each step of the process.

Did you know ?

In Luxembourg, English is widely spoken in the professional world. Workers come from all over, with most coming from border countries.

The many benefits to working in Luxembourg

High wages aren’t the only thing that make Luxembourg so appealing:

  • the country offers a broad range of benefits: insurance, car, pension savings, etc.,
  •  some companies offer a thirteenth month bonus, usually paid in December,
  • minimum 26 days’ leave per year, 11 days of statutory vacation time and additional leave for special events (weddings, births, death of a loved one, etc.),
  • one of the world’s most efficient healthcare systems,
  • Nestled in the heart of Western Europe, Luxembourg is just a stone’s throw away from neighbouring major cities (two hours from Paris, three from Brussels and three and a half from Frankfurt by train). Findel airport also offers flights to 24 different countries.

Good to know

Is a positive working environment an important factor for you? In Luxembourg, companies are ramping up their investment in employee satisfaction at work (crèches, gyms, concierge service, etc.).

Join BGL BNP Paribas

Want to join the BNP Paribas Group in Luxembourg? Discover our Employer Promise.

Frequently asked questions

  • icone faq question
    Which BGL BNP Paribas products are tax deductible?

    In Luxembourg, you can reduce your income tax bill through certain loans, savings and life insurance products. BGL BNP Paribas offers a whole range of solutions to help plan for your future, while taking advantage of tax benefits:

    • OptiSave+
    • OptiPension+
    • Schwäbisch Hall home savings scheme
    • credit protection insurance
    • debit interest
  • icone faq question
    Can I open a bank account before I arrive in Luxembourg?

    You will be able to open a BGL BNP Paribas account if you are in the following situation:

    • You must be aged 18 or over and legally competent

    You can open your BGL BNP Paribas current account entirely online and completely free of charge.

  • icone faq question
    I have to pay a deposit for my new flat rental in Luxembourg. Does the bank offer secure solutions for paying this deposit?

    Yes. You can obtain a rental guarantee. This solution is the most common and most secure for you and the landlord. It’s granted directly by the bank, meaning there’s no risk of being scammed. Specifically, you pay the rental deposit without ever being able to access it.

(1) Statec 2014 figures published in a 2017 study: https://statistiques.public.lu/catalogue-publications/bulletin-Statec/2017/PDF-Bulletin1-2017.pdf

(2) Tax deductibility varies based on the personal situation of each client and is subject to change.