Last Updated on 22/09/2025

Attractiveness of the Luxembourg’s site

The attractiveness of Luxembourg is a longstanding and growing problem. Colleagues directly hired by the Commission/Institution are getting a salary similar to Brussels while the cost of living is significantly higher than in Brussels. The high living and medical costs make Luxembourg unattractive for Commission employees. It partially explains why over a third of our employees live across borders and it certainly explains why the Commission and other European Institutions have huge difficulties to hire and retain staff in Luxembourg. 

Your typical questions are the following: 

  • Why do I get the same salary as an expatriate in Brussels?
  • Why isn’t our income adapted to the cost of living in Luxembourg?
  • Why isn’t our salary indexed as the salaries of the public and private sector in Luxembourg?
  • Why not have a Correction Coefficient for Luxembourg?
  • What about a Housing Allowance?
  • Is there any way to benefit from a financial compensation for the high cost of living?

You are not alone. Let us provide you with some clarifications: 

Luxembourg is in fact one of the headquarters of the Commission as further reflected in our Staff Regulations. These further specify that the salaries in Luxembourg and Brussels are the same. The salaries are calculated on the basis of a joint index that sees Luxembourg and Brussels as one and the same, so there can be no correction coefficient for Luxembourg. Even if the cost of living is significantly higher in Luxembourg, the actual purchase power difference with Brussels is now well over 20%. This is mainly (but not only) linked to the cost of housing. 

EU Staff conditions of employment do not fall under the Luxemburgish law and rules (except some specific contracts). We thus cannot benefit from the national salary adaptation/indexation. 

On the basis of the present Staff Regulations, a housing allowance would be possible. However, it seems the Council is not in favour of any budget increase. We warn against requesting a Correction Coefficient because it implies opening of the Staff Regulations. Once opened, the Council would be free to change our working conditions and income entirely and surely not in our favour. 

In January 2025, the Commission introduced a housing allowance. It is aimed at certain colleagues who are resident in Luxembourg under certain conditions. It is planned for a period of 4 years. This housing allowance is insufficient (amount, coverage). However, it has the merit of existing. Union Syndicale Fédérale-Luxembourg will continue to fight for a satisfactory and lasting solution to the problem of attractiveness of the Luxembourg site. 

One can always benefit from various national aids to partially compensate for this discrimination against the staff based in Luxembourg (Aides individuelles nationales (europa.eu)). It seems that most of us are not aware of the available subsidies and do not request them.  

The devil is in the detail. We have different types of contracts which define our salaries (Officials/Temporary Agents/ Contract Agents/National Detached experts/’Employés de Droit Luxembourgeois’ with various seniorities) and personal situations (with/without family, with/without kids, various places of origin, etc.). We can help you assess your financial rights in the Commission context, define your options, and advice you on what to do. Do not hesitate to contact us. 

 

Disclaimer:   

We always try to provide you with the latest information. However, the fast evolution of the situation does not always allow us to timely update this page content. The references hereunder (leaflets and news) might provide you with additional information. However, if you need to have a quick update don’t hesitate to contact us: REP-PERS-OSP-USF-LUXEMBOURG@ec.europa.eu   

 

 

LEGAL BASIS: 

  • Staff Regulations: Art 1e (housing allowance), Art 64 last paragraph, Annex XI Art 1, 3, 4, 5, 6

OTHER USEFUL LINKS:  

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