The Grand Duchy does in fact boast the highest gross annual salary across the entire European Union. But in its latest publication, STATEC points out that there is more to it than that.
Luxembourg is already difficult to compare to other countries, if just for its atypical labour market structure with a dominant finance sector. No less than 13% of the Grand Duchy's employees work in the finance and insurance sector, compared to only 10% in the industrial sector. At a European level, however, the latter accounts for 22%. On the other hand, the construction sector (11% of all employees) is also over-represented in Luxembourg. In this sector, salaries are usually on the lower end.
Overall, it can be observed that salaries in Luxembourg vary widely depending on the economic activity. Not everyone is being paid well, far from it, the report determines. In addition, the number of "working poor" is on the rise in the Grand Duchy. The gap between the countries also becomes smaller if purchasing power is taken into account. The difference between salaries is much bigger in Luxembourg compared to France or Belgium. In Belgium, employees in the commerce, construction, and hospitality sectors are on average even paid better than in Luxembourg. As for the industrial sector, salaries are higher in Germany than in the Grand Duchy.
On the other hand, Luxembourg is fairly unrivalled when it comes to civil service and the education, healthcare, or finance sectors. STATEC also states that bonuses are higher and paid out more frequently in Luxembourg. Another interesting observation is the fact that the average hourly wage is higher in certain European areas, including Norway, London, Denmark, and Switzerland.
Luxembourg is also the European country with the smallest gender pay gap, at 1.4%.
