Calculate your salary to manage your budget in Luxembourg

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⁾:

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.

Tip

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.).

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