Software Engineer Salary in Luxembourg: Official Pay Data 2022
The typical software engineer salary in Luxembourg is best measured by the information and communication sector, where the median was €72,157 gross a year in 2022 in full-time equivalent, bonuses included, and the mean was €79,881 (STATEC). That is 1.24 times the median of €58,126 for all employees. Professionals as an occupation group, across all sectors, had a mean of €97,772.
Workers in the information and communication sector in Luxembourg, where most software engineers work, earned a median of €72,157 gross a year in 2022, according to the national statistics office STATEC. This page is for software engineers deciding what to ask for in Luxembourg and for companies, often in the US or the UK, budgeting a hire there. It sets out what STATEC reports by sector and occupation, how Luxembourg compares in Europe and what an employer pays on top of salary in 2026.
Pay in Luxembourg by sector and occupation group, 2022
Pay of ICT sector professionals: Luxembourg and neighbours
What software engineers earn in Luxembourg
STATEC does not publish pay for software developers as a single occupation. The closest official figure is the information and communication sector (NACE section J), which includes software publishing, programming and IT services. In STATEC's structure of earnings survey for 2022, full-time equivalent pay in this sector had a median of €72,157 gross a year and a mean of €79,881. Both include all bonuses, overtime, the 13th month and end-of-year bonuses. The median for all employees was €58,126 and the mean €75,919, so the sector median sits about 1.24 times the national midpoint (our calculation).
The figures cover everyone in the sector, from support staff to managers, so a qualified software engineer will often sit above the sector median. As a guide by occupation, STATEC reports a mean of €97,772 a year for professionals (ISCO-08 major group 2, which includes software developers) across all sectors in 2022, up from €84,346 in 2018. Technicians and associate professionals had a mean of €77,479 and managers €158,242.
Pay by residence and sector
Luxembourg relies heavily on cross-border commuters, and pay differs by residence. In the information and communication sector, the 2022 mean was €73,876 for cross-border commuters, €85,417 for residents of foreign nationality and €87,132 for residents of Luxembourg nationality (STATEC). Sectors that also hire many engineers pay differently: financial and insurance activities had a median of €93,843 and a mean of €113,018, and professional, scientific and technical activities a median of €71,118 and a mean of €105,145.
STATEC notes that mean pay in the information and communication sector grew slowly between 2018 and 2022 because of exceptionally high bonuses in 2018; excluding them, pay grew 4.2% a year. For a more recent all-economy figure, STATEC's social security based series puts average annual gross earnings of full-time workers in industry and services at €80,713 in 2025, against €77,951 in 2024. That series does not show the information and communication sector.
How Luxembourg compares in Europe
In Eurostat's Structure of Earnings Survey for 2022, professionals in the information and communication sector in Luxembourg earned a mean of €76,730 a year, 1.33 times the EU average of €57,522 (our calculation). Germany (€78,189) was slightly higher, while Belgium (€74,098), the Netherlands (€69,120) and France (€60,737) were lower. Luxembourg had 28,500 ICT specialists in work in 2025, 8.7% of total employment, against 5.0% across the EU.
What an employer pays on top of salary
Luxembourg employers pay social security contributions collected by the Joint Social Security Centre (CCSS). From 1 January 2026 the employer share is 8.50% for pension insurance, 2.80% for health and maternity insurance, 0.25% for the sickness cash benefit surcharge, 0.65% for accident insurance at the standard bonus-malus factor of 1.00 and 0.14% for occupational health (multisector service). The mutualité des employeurs adds between 0.23% (class 1) and 2.66% (class 4), depending on the employer's absenteeism rate. Contributions stop at a maximum base of €13,518.68 a month, raised to €13,856.63 from 1 June 2026. Long-term care insurance (1.40%) is paid by the employee only.
For a software engineer on the 2022 sector median of €72,157, with mutualité class 1, that comes to €6,133.35 for pension, €2,020.40 for health, €180.39 for the cash benefit surcharge, €469.02 for accident insurance, €101.02 for occupational health and €165.96 for the mutualité: €9,070.14 a year, or 12.57% on top of salary, for a total of €81,227.14 (our calculation, 2026 rates). In mutualité class 4 the rate is 15.00%, or €10,823.55. Pay has risen since 2022 through automatic wage indexation, so a 2026 salary and its contributions will be higher. Left out: accident insurance factors other than 1.00, any company pension or supplementary insurance, and benefits in kind.
Hiring a software engineer in Luxembourg remotely
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Once you have chosen someone, there are 3 common ways to employ them in Luxembourg:
- Luxembourg entity: you register a company in Luxembourg, run payroll and pay the employer's contributions yourself.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Luxembourg payroll for a monthly fee. Your company directs the work.
- Contractor: the person invoices you as a freelancer. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We find and shortlist the candidate, and you employ them through the route that fits.
Looking for a role yourself? Browse remote jobs in Luxembourg or see how our Land a Great Remote Job program helps.
How we built these figures
The main figures come from STATEC's structure of earnings survey for 2022, carried out in 2023 with a sample of more than 3,600 enterprises with 10 or more employees. It covers resident and cross-border employees, excludes the self-employed, and converts pay to full-time equivalent annual amounts including all supplements, premiums and bonuses. STATEC publishes medians by sector and means by occupation group; it does not publish figures for software developers alone, by job title such as frontend or backend engineer, by years of experience or by remote status. The 2025 all-economy figure comes from a different STATEC series based on social security files. The Eurostat comparison is from the same 2022 survey round and covers professionals in the information and communication sector only. Where we multiply or divide, we say so.
More guides
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
What is the average software engineer salary in Luxembourg?
STATEC does not publish a figure for software engineers alone. In the information and communication sector, where most work, the median was €72,157 gross a year in 2022 and the mean €79,881, in full-time equivalent with bonuses included.
How much do senior software engineers earn in Luxembourg?
Official statistics do not use the word senior. Professionals (ISCO 2) across all sectors had a mean of €97,772 a year in 2022, and managers €158,242, according to STATEC.
Do cross-border commuters earn less in Luxembourg tech jobs?
On average, yes. In the information and communication sector the 2022 mean was €73,876 for cross-border commuters, €85,417 for foreign residents and €87,132 for residents of Luxembourg nationality (STATEC).
How much does a software engineer cost an employer in Luxembourg?
At the 2022 sector median of €72,157, employer contributions at 2026 rates come to about €9,070 a year, 12.57% of pay, with the lowest mutualité class and the standard accident insurance factor (our calculation). In mutualité class 4 the rate is 15.00%.
Can a company outside Luxembourg hire a software engineer there without a local entity?
Yes. The usual routes are an employer of record, which employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: a shortlist of 3 vetted candidates within 21 days for a flat $6,500, and you choose the route.
Sources
- STATEC, Regards 09/24, Salaires au Luxembourg, structure of earnings survey 2022 (PDF). Checked 9 Nov 2026.
- STATEC, LUSTAT DF_C1202, average annual gross earnings by economic activity, full-time workers. Checked 9 Nov 2026.
- Eurostat, Employed ICT specialists, isoc_sks_itspt. Checked 9 Nov 2026.
- Eurostat, Structure of Earnings Survey 2022, earn_ses22_49. Checked 7 Nov 2026.
- Centre commun de la sécurité sociale (CCSS), Notice to employers on contribution rates and parameters from 1 January 2026, 16 Jan 2026. Checked 9 Nov 2026.
- Guichet.lu, Social parameters from 1 June 2026. Checked 9 Nov 2026.
