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How to calculate my net salary in Luxembourg ?

When you want to settle in another country, it is important to get simple and practical benchmarks quickly. Over the next few weeks we will give you an overview of the elements to take into consideration before moving to Luxembourg in terms of salaries, housing, family allowances etc..

In Luxembourg, a minimum social wage (SSM) exists  

The minimum social wage in Luxembourg is composed of two levels:

  • the unqualified social minimum wage, which amounts to € 1.998*gross. This amount will become € 1.756 after social security contributions have been deducted. This salary may be also reduced depending of the age of the person (under 18).
  • the qualified minimum social wage amounts to 2.398€ gross and becomes 2.107€ net after social security contributions.

The social security contributions paid by the employee cover health insurance, pension insurance and long-term care insurance.

The Tax system in Luxembourg

Taxes are directly deducted for the above mentioned incomes when the employer pays the salary. For example :

A bachelor without children earning the qualified SSM will pay 140 € for the income tax. The net salary after taxes and social contributions will be therefore just under 2000 €.

A married person with children earning 3000 € gross per month will pay only 45 € income tax. The net salary after contribution and taxes will be just under 2600 €.

These calculations do not take into account certain other incomes that could be collected by the employee such as the various benefits (company car) and travel expenses.

Average wages in Luxembourg

However, average wages in Luxembourg are high and show significant differences between sectors of activity (STATEC data):

  • Industry: 49,311 €
  • Construction: 39,060 €
  • Services: 58,614 €
  • Trade, repair of automobiles: 42.287 €
  • Financial activities and insurance: € 86,453 €

Calculation of net salary in Luxembourg

Check the Sample Calculation of Net Monthly Compensation. 

*  Salary (given on 01/01/2017 for a period of 40 hours).
Source: Administration des contributions directs.

To know more about employment in Luxembourg

More information about tax card and taxes in Luxembourg

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