Salary Calculator Luxembourg

Tax Year: 2024 – 2025

If you live in Luxembourg and earn a gross annual salary of €64,932, or €5,411 per month, your monthly net salary will be €3,762. This results in an effective tax rate of 30%, as estimated by our Luxembourg salary calculator.

The table below shows how your monthly take-home pay would vary across different eurozone countries based on the gross salary you entered.

The following chart outlines your earnings relative to the national average salary and minimum wage in Luxembourg.

Please note that the national figures assume full-time employment for the entire year, while your salary is calculated according to the settings you selected.

The average gross salary in Luxembourg is €5,411 per month, or €64,932 per year, according to the latest data from the National Institute for Statistics and Economic Studies of the Grand Duchy of Luxembourg (STATEC). If we run this through our salary calculator, we get an estimated after-tax salary of €3,762 per month.

This figure makes Luxembourg the EU member state with the highest average wage. However, it is important to note that the mean tends to be skewed by high earners, since it is calculated as the sum of all salaries divided by the number of individuals. Thus, the salary of the average worker in the Grand Duchy is likely lower.

The minimum wage in Luxembourg is €2,571 per month (€30,851 yearly) for unskilled workers, and €3,085 per month (€37,021 per year) for skilled workers. These figures refer to full-time employees (40-hour work week) over 18 years old, for which our tax calculator estimates corresponding monthly net salaries of €2,174, and €2,527, respectively.

The minimum wage, also called the minimum social salary, plays an important role in how Luxembourg taxes are calculated, since it determines the values of certain social contributions and tax credits. The table below lists the minimum wages for the different age groups and qualifications, broken down into the corresponding hourly, monthly, and yearly amounts.

The salaries of employed taxpayers are generally taxed at source in Luxembourg. This means that income tax and social security contributions are deducted monthly from the gross salary directly by employers. The calculation of income tax depends on the individual's family status, therefore it is important to announce any change in your personal situation as soon possible.

If you are self-employed, then you need to file a tax return with the Luxembourg Inland Revenue, who may even require you to make quarterly advance payments on your income tax. You will also be required to pay both the employee's part and the employer's part of your social security contributions.

• Income Tax: Is a progressive tax with 23 brackets, ranging from 0% to 42%.
• Employment Fund Contributions: Are a surcharge that increases the income tax by 7% for earnings not exceeding €150,000, and by 9% for income above that threshold.
• Social Security Contributions: These are payments to Luxembourg's social security system, shared by both employees and employers, covering: pension contributions, compulsory health insurance, and long-term care insurance.
• Social Minimum Wage Tax Credit (CISSM): Is a tax credit that lowers the tax burden on employees with annual gross salaries between €21,600 and €43,200.