In Luxembourg, if your gross annual salary is €64,932, or €5,411 per month, the total amount of taxes and contributions that will be deducted from your salary is €20,960.
This means that your net income, or salary after tax, will be €43,972 per year, €3,664 per month, or €846 per week.
For ease of use, our salary calculator makes a few assumptions, such as that you are not married and have no dependents. In other words, we assume that you are in Luxembourg's tax class 1. Even if your personal situation is different, our calculator can still give you a good indication of your net salary in Luxembourg.
For a gross annual income of €64,932, our tax calculator projects a tax liability of €1,747 per month, approximately 32% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings by the Luxembourg government.
| Yearly | Monthly | Weekly | |
|---|---|---|---|
| Gross Income | 64,932 | 5,411 | 1,249 |
| Income Tax | 12,132 | 1,011 | 233 |
| Employment Fund | 849 | 71 | 16 |
| Pension Contributions | 5,195 | 433 | 100 |
| Health Insurance | 1,980 | 165 | 38 |
| Long-Term Care Insurance | 804 | 67 | 15 |
| Minimum Wage Tax Credit | 0 | 0 | 0 |
| Total Tax Due | 20,960 | 1,747 | 403 |
| Take-Home Pay | 43,972 | 3,664 | 846 |
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 €3,664 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.
Luxembourg has the highest average salary in the European Union!
The minimum wage in Luxembourg is €2,508 per month (€30,099 yearly) for unskilled workers, and €3,010 per month (€36,119 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 €2,102, and €2,436, 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. Use our calculator to estimate the associated take-home pay.
| Group | Hourly Wage | Monthly Salary | Annual Salary |
|---|---|---|---|
| Age 18+ (skilled workers) | €17.36 | €3,010 | €36,119 |
| Age 18+ (unskilled workers) | €14.47 | €2,508 | €30,099 |
| Age 17 – 18 | €11.58 | €2,007 | €24,079 |
| Age 15 – 17 | €10.85 | €1,881 | €22,574 |
Luxembourg has the highest minimum wage in the European Union!
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 (Administration des contributions directes, ACD), 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.
Our calculator includes all the typical taxes, contributions, and credits that the Luxembourg government levies on employment income, namely:
- Income Tax: Is a progressive tax with 23 brackets, ranging from 0% to 42%. For single taxpayers without dependents (class 1), the first €11,265 of income is not taxed, but the next brackets are taxed progressively more, up until 42% for any income over €200,004.
- 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. As with the income tax, the calculation of employment fund contributions depends on the taxable income and family status of the individual.
-
Social Security Contributions: Are contributions to the country's social security system, and are paid in part by
the employee and in part by the employer.
The employer withholds the employee's contributions at source and remits the total amount to the social security authorities.
Luxembourg's social security contributions include:
- pension contributions (the employee pays 8% of their total gross income, capped at earnings of €150,494 per year)
- compulsory health insurance (the employee pays 3.05% of their gross income, also capped)
- long-term care insurance, sometimes called dependency insurance (1.4% of the income, not capped, and only paid by the employee)
- 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. In general, the credit gets subtracted from the employee's income tax every month directly by the employer. In 2023, the credited amount is limited to €70 per month.
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