📰 Luxembourg: huge wage differences with France revealed

For people in Lorraine, Luxembourg is attractive in many ways. The main draw is the salaries. INSEE Grand Est has just revealed the differences in pay between France and the Grand Duchy, and they are huge. On average, cross-border workers earn 65% more when they cross the border. In some sectors, such as healthcare, this percentage is even higher.

If thousands of people cram into uncomfortable trains every morning, if hundreds risk their lives on congested roads every day, it is not without reason, or out of pure masochism. Luxembourg remains an El Dorado for all workers seeking better pay and preserved purchasing power. With inflation, stagnant wages, precarious careers, and an unfortunate tendency to underpay young graduates, France is failing to retain these vital forces. And this exodus is nothing new. According to Luxembourg’s General Inspectorate of Social Security (IGS), over the ten-year period from 2013 to 2023, the number of people residing in France and working in Luxembourg has increased by 53%, reaching 121,800 cross-border workers in 2023.

The poor transport links do not deter cross-border workers, who find better pay and working conditions in Luxembourg. Photo Philippe Neu

A population attracted by the promise of unparalleled incomes in the European Union. In a study released on Monday, November 24, INSEE Grand Est revealed these enormous differences in remuneration between France and the Grand Duchy. Workers living in Moselle, Meurthe-et-Moselle, and Meuse earn 65% more on average when they cross the border.

In certain sectors such as healthcare, this percentage is even higher, reaching 103%. Nurses, nursing assistants, doctors, and others are thus drawn to Luxembourg’s healthcare and medical-social establishments, which offer not only decent salaries, but also excellent working conditions and social benefits for families.

NSEE notes that while the “average wage gain is +103% in the health and social services sector,” it rises to “+138% for women with a bachelor’s or master’s degree (technicians aged 40 to 49).” This equates to an annual salary of €58,590 in Luxembourg, compared to €24,590 in northern Lorraine. More than double. Women are more advantaged in Luxembourg than in France: “They earn 76% more on average, while the wage gain for men is 55%,” points out INSEE.

For identical jobs, salaries in construction are also 41% higher than in France. Finance is up 94% and industry 40%. With an unemployment rate of close to 6% in October, the more in-demand the jobs are, the more Luxembourg pays. In industry, the average salary is €34,810 per year, compared to €24,320 per year in Lorraine. The average salary in the financial sector, which is highly developed in Luxembourg, exceeds €69,800 per year, compared to €36,020 per year on the French side.

Regardless of their socio-professional category, employees will always earn more money than in France. The average salary for an executive is €69,490 per year in Luxembourg, compared to €44,940 per year in France. “Cross-border executives aged 40 to 49 with a master’s degree earn on average 77% more than non-cross-border workers,” according to INSEE. Employees generally double their salary, which rises from €21,820 per year if they remain in France to €41,990 per year if they cross the border. A skilled worker, on average, earns €10,000 more per year (€23,750 per year in France compared to €33,760 per year in Luxembourg).

Qualifications are also better recognized. A two-year college degree holder can expect to earn an average of €50,030 per year (€30,040 per year in Lorraine), a three-year or four-year degree can expect €54,290 per year (€31,680 per year), and a five-year degree can expect €64,300 per year (€43,460 per year). Level of education is not a barrier to pay. This small country also pays decent wages to those with less education: BEPC, €38,700/year (€24,770/year in France); BEP-CAP, €37,240/year (€24,220/year); Bac, €39,220/year (€25,580/year).

Several factors explain these wage differences. First, the equivalent of the minimum wage in Luxembourg, the Salaire Minimum Social (SSM), is much higher than in France (€1,801.80 gross/month). For an unskilled worker, it is €2,703.74 gross/month in Luxembourg, and for a skilled worker, €3,244.48 gross/month, or around €2,500 net. This higher base serves as the foundation for calculating higher salaries. Another distinctive feature of Luxembourg is that salaries automatically follow the inflation curve.

People also work longer hours in Luxembourg. The legal working week is 40 hours (35 hours in France). Every employee is entitled to at least 26 working days of paid leave per year. Finally, for those who might be tempted by the adventure, the Luxembourg Employment Development Agency (Adem) announced on Thursday, November 20, a 7.8% increase in job vacancies in October this year compared to October 2024. That’s 7,218 jobs up for grabs.