Engineer in Luxembourg: remuneration and benefits

If you are an engineer, you have surely heard about the attractive salaries in Luxembourg. But what is it really like? Is it a legend or a reality?

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Spoiler: the numbers speak for themselves!

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With a gross annual salary that greatly exceeds that in France and Belgium, the Luxembourg job market is attracting more and more technical profiles. Whether you are an engineer starting out or with several years of experience, there is a good chance that you will be able to claim a much higher salary than elsewhere in Europe.

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But what are the most profitable jobs? How can a technical professional evolve in this dynamic sector? What are the factors that influence compensation and how do you negotiate a better salary range? Depending on your position, your expertise and even the sector, salary differences can be significant.

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Discover the 2025 salary trends, the remuneration by profession, and the criteria that determine The gross salary of an engineer in Luxembourg. You will also discover how some companies value their talents and what are the best opportunities to boost your professional career.

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The average salary of an engineer in 2025

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Engineers are among the best paid profiles in Luxembourg, with competitive salaries that exceed those in many European countries. In 2025, An engineer earns an average of €58,750, about €30.13 per hour.

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Difference between beginners and advanced

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The salary varies according to the experience and the position held:

• Junior engineer: A position offers an average of 50,000 € gross per year
• Confirmed engineer: with several years of experience, it can reach €72,500 gross per year

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Gross/net comparison: how much is left after taxes?

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Unlike other European countries, Luxembourg applies a withholding tax, integrating social security contributions and income tax

• Social contribution : around 12.5% of the gross salary
• Income tax : the rate varies according to the family situation, but a single engineer with 50,000 euros gross/year can expect a net salary of around 38,000€ per year, i.e. €3,166 per month

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Tax advantages in Luxembourg

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The Luxembourg tax system makes it possible to reduce income taxation through several mechanisms:

• Exemption from tax on the social minimum wage: since 2025, all income up to €26,460 is tax exempt.
• Tax deductions: some business expenses, such as travel expenses, can be declared to reduce taxation
• Insurance premiums: premiums paid for insurance contracts (life, death, civil liability, etc.) are tax deductible up to 672€ per person in the household
• Pension savings: contributions paid as part of pension savings are deductible up to €3,200 per year and per taxpayer, regardless of age

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Factors that influence the remuneration of an engineer

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The remuneration of engineers in Luxembourg is influenced by various factors, both related to the sector of activity and to individual characteristics.

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Remuneration that varies according to the sector of activity

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Computer/network engineer

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Computer engineers benefit from attractive salaries. For example, an IT project manager with less than three years of experience can qualify for a salary of 55,000 to 68,000 euros per year.

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Environmental engineer

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Salaries in this sector vary according to projects and responsibilities.

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The salary range for the majority of environmental engineers varies from €3,821 to €7,895 per month in 2025, i.e. between €45,852 and €94740 per year gross.

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An environmental engineer generally earns between €3,821 and €4,935 gross per month when starting work. After 5 years of service, this salary is between €4,367 and €5,814 per month for a 40-hour work week.

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Construction engineer

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Civil engineers, involved in construction, have a median salary of around 65,000 euros per year, with beginners at 55,000 euros and experienced profiles reaching 80,500 euros.

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Industry and energy

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Engineers in industry and energy may see their salaries vary based on specialization and experience. The Estimated total salary for an engineer in the industrial and energy sector is €56,530 per year, with an average annual salary of €49,500.

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Other criteria affecting the salary of an engineer

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Experience and specialization

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Experience is a key factor. An entry-level engineer earns about 50,000 euros per year, while an experienced professional can reach 72,500 euros

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Degree Level

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Engineers with a master's degree (Bac + 5) or a doctorate (Bac + 5) or a doctorate (Bac +8) can claim higher salaries, reflecting their level of expertise.

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Location

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Working in Luxembourg City can offer higher salaries due to the concentration of businesses and opportunities, compared to other regions of the country.

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Languages spoken

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The mastery of the French of English and Luxembourgish is a major asset increasing employability and potentially salary.

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Public/private contract

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Engineers in the private sector can benefit from higher salaries and bonuses, while the public sector offers stability with defined salary grids.

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Mobility and distance between home and work

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Companies value the flexibility and mobility of engineers, which may result in financial benefits or compensation for travel.

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Non-wage benefits in Luxembourg

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In addition to an attractive gross salary, an engineer in Luxembourg benefits from numerous non-wage benefits that improve his annual remuneration and his professional development.

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More advantageous taxation and fewer social security contributions

• Fewer social charges: social security contributions paid by the employer in Luxembourg amount to 2.80% for health insurance, 8% for pension insurance and 1.40% for long-term care insurance, totalling 12.20%
• Tax exemption: income up to €13.20 is subject to a tax rate of 0%

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Frequent bonuses and bonuses

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• Performance bonus: offered according to the missions, the projects carried out and the achievement of the objectives set by the responsible team
• End of year bonuses: in some contracts, a double nest egg or a 13th month is granted

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Mobility and reimbursement of expenses

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• Transportation allowances: some companies reimburse travel expenses related to technical missions
• Office car: common for project management engineers

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Leave, health insurance and retirement

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• 26 days of paid vacation guaranteed, allowing a good evolution between work and personal life
• Mutuals and pension plans Private companies are partly financed by the employer to support employees in their future

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These professional advantages make the Luxembourg job market an ideal opportunity for an engineer seeking to evolve in a competitive system.

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Comparison: Engineer in Luxembourg vs other countries

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sourcing : business-cool.com, Lefigaro.fr, job-connecti.com

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Belgium: high charges, restrictive taxation

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A specialized engineer earns an average salary of around €64,196 gross/year, based on his experience and technical field.

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• Social security contributions: with a rate of 50.3% for the employer, companies must optimize their cost management system;
• Opportunity: some industrial groups offer financial services and performance bonuses to recruit talent.

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France: a market in tension with high costs:

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The average salary of a specialized technician or an engineering manager can claim up to €60,000 gross/year

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• Heavy employer charges: 51.7% impacting the cost of employment for companies;
• Career development: some companies offer continuing education methods to hinder the optimization of skills and promote professional development

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Germany: a structured and sectorized system

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A computer or automotive engineer receives on average a salary of 88,213€ gross/year

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• Sectoral differences: the automotive sector and IT services pay better than other technical jobs;
• Project management: technical managers benefit from a system of bonuses and bonuses to manage teams and support strategic customers

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The most sought-after engineering jobs in Luxembourg

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Luxembourg is constantly looking for talent in various fields of engineering. Here is an overview of the engineering jobs that are most in demand:

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Network and cybersecurity engineers

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With increasing digitalization, the security of information systems has become essential. Network and cybersecurity engineers are critical to protecting sensitive customer data and ensuring compliance with international standards. Their role within companies is strategic, especially in the financial and legal sectors, where the protection of information is crucial.

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Building and infrastructure engineers

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The urban development of Luxembourg requires professionals capable of designing and supervising major structures. Building engineers play a key role in the realization of large-scale projects, collaborating with architectural firms and construction companies. Their expertise guarantees the quality and sustainability of infrastructures, meeting international standards.

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Renewable energy engineers

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Faced with environmental challenges, Luxembourg is investing in renewable energies. Engineers specialized in this field are in demand to develop sustainable solutions, such as wind and solar energy. Their mission includes the research and development of innovative technologies, contributing to the country's energy transition.

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Embedded systems engineers

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Today, embedded systems are everywhere, from vehicles to medical devices. Engineers in this sector design integrated electronic systems that ensure performance and reliability. Their expertise is sought after by industrial groups and companies specialized in Engineering, both nationally and internationally.

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Luxembourg offers numerous opportunities for engineers in these key areas, reflecting a dynamic and forward-looking economy.

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Luxembourg offers unique opportunities for engineers thanks to competitive remuneration, a dynamic environment and a rapidly expanding job market. With reduced social security contributions, tax advantages and a high demand for technical expertise, it represents a destination of choice for professionals wishing to evolve in a stimulating environment.

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Whether you are a junior engineer or an expert In research and development, major groups and specialized firms in Luxembourg are actively recruiting. The implementation of new certifications and technologies further reinforces the value of qualified profiles.

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Do you need advice or a solution adapted to your career? Visit our site and discover engineering offices looking to manage innovative projects. It's time to realize your potential and join a booming market!

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Apply now on our site and give new impetus to your engineering career in Luxembourg.

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Frequently asked questions

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Which engineering profiles pay the most?

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Cybersecurity, finance, and embedded systems engineers are the best paid. Large groups recruit these experts for their strategic technical support.

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What is the salary of an engineer in Luxembourg at the beginning of their career?

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A junior engineer earns around €50,000 gross/year, depending on his sector. Electrical engineering and automation offer competitive prices with incentives.

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Why are French engineers going to work in Luxembourg?

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French engineers are looking for higher salaries and fewer social security contributions. Working in Luxembourg while living in France combines a high salary and a lower cost of living.

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