Working in Luxembourg

The Luxembourg labor market proves to be extremely attractive compared to those of neighboring countries and many other countries worldwide. The lower wage taxation as well as the extremely moderate social security contributions in Luxembourg help many to achieve a significantly higher net wage than for the same job in Germany. In addition, there are higher child benefits and much higher pension entitlements than in Germany.

The Luxembourg labor market is characterized by an international and multicultural environment. The number of foreign and multilingual workers is exceptionally high in Luxembourg. Other features are the very strong service sector and the low unemployment rate, which has been far below the European average for years. Luxembourg thus offers an interesting alternative to other countries for many employees, especially if you work in Luxembourg and live in Germany at much more favorable conditions.

The political, social and economic stability of the country, as well as its dynamic and innovative companies, make Luxembourg an ideal place to work. Social peace has also traditionally been a top priority in Luxembourg. Social disagreements are usually resolved through dialogue with the collective bargaining partners, whether within a company or at the national level. This leads to regular increases in collectively agreed wages even without union ties.

Some important facts at a glance:

Attractive labor market, twice as many jobs as active population
More than 65% employment growth between 2000 and 2020
70% of employees in Luxembourg are not Luxembourgers, but cross-border commuters or immigrants
The share of cross-border commuters among employees has grown from 3% in 1961 to 42% in 2016
Luxembourg benefits strongly from Brexit through many new settlements especially in the financial sector
Continuous increase in the number of large international companies and corporations relocating to the country, offering a steady stream of new employment and career opportunities
Strong development of a network of startups
High level of security, hardly any crime
Financial attractiveness: above-average wage conditions, low taxation and social security contributions, high pensions and retirement benefits
Combination of working in Luxembourg and living in Germany is particularly attractive
Very modern infrastructure; free local transport
Important financial center