Published on: 18 April 2025 As Luxembourg continues to hold its reputation as a financial leader and hub for international business, the job market is evolving fast—and so are expectations around salary, benefits, and work-life balance.
Whether you’re a job seeker, employer, or HR leader, understanding these trends is crucial for staying competitive in today's market.
Salary Packages: Competitive, but Selective
In 2024, we’ve seen steady salary growth across key sectors like finance, IT, legal, and logistics. Here are a few highlights we’ve seen this year:
- Tech & IT roles are seeing 5–10% increases from last year, especially in cybersecurity, data science, and software engineering as the market gets more competitive and talent gets scarce.
- Finance & Fund Administration continue to offer strong base salaries, with bonus structures becoming more complex. We’ve seen clients opt to drop bonus structures and increase base by 5% while others are moving strictly into individual performance base, and a drop in bonuses compared to last year.
- Legal & Compliance roles remain well-compensated due to continued demand from regulated industries.
- Industrial and Commercial roles continue to be lower than within the finance sector but we have seen a salary increase of 5% across major roles within the sector due to the growth and demand of the sector.
Keep in mind, with recent indexation talk, it is likely that expectations will increase slightly over the next few months before they get stable again.
Benefits: Evolving Beyond the Basics
The market buzz is still around work/life balance and hybrid working. Companies who don’t offer hybrid working (location dependent) will quickly find themselves losing talent to competitors who do. Other lifestyle-focused perks include:
- Remote/hybrid work models
- Meal vouchers (chèques-repas) remain a popular benefit, with most companies offering 10.80EUR, some going up to 15EUR this year. These can be given for each working day of the month, however most companies are opting to offer 18 per month.
- Private health insurance and mental health support programs are growing in popularity.
- Health incentives such as mental support or physical support are also on the rise with more companies successfully implementing healthy habit programs into their teams.
Trend: Candidates are increasingly choosing employers based on flexibility, mental health support, and career development programs—not just salary.
Trends to Watch in 2025
Here’s what’s shaping the Luxembourg job market this year and beyond:
- AI & Automation are shifting job descriptions, especially in finance, compliance, and operations.
- Employer Branding is becoming critical—candidates are on the hunt to know what culture and work environment are like before accepting roles and want transparency around pay and growth opportunities.
- Growth is becoming essential. Candidates are hesitant to move without knowing what the next 5 years would look like for them in terms of growth and development. Companies who struggle to paint a clear picture will find it challenging to attract the right talent who think long-term.
- Management & Leadership is a driving factor amongst the market. Candidates are looking to learn and develop and be lead by true leaders. Having a strong leader in today’s market is the top request from candidates when looking for a new role and for good reason.
For the remainder of 2025, we will continue to see that salary alone isn’t enough to hold a competitive spot in the market this year. A holistic approach to benefits, well-being, and flexibility is what will define the winners in the talent race of 2025 and ensure talent stays. Overlooking employer branding and transparency will quickly ruin a reputation and make it challenging to retain top talent this year.
Interested in how we can support your company in their Recruitment and HR strategies? Feel free to reach out or visit our website selecthr.lu