Luxembourg vs Germany

Compare PPP-adjusted average wages, long-term wage trends and consumer price levels using consistent OECD data.

Country A

Country B

Wage data: 2025 · Price data: 2024

Comparison Overview

Luxembourg

Average wage (2025)

$98,530

1-year change: +1.1%
5-year change: +8.3%

Overall price level (2024)

96.6 (United States = 100)

Luxembourg's latest PPP-adjusted average wage is approximately 29.2% higher than Germany's.

Germany

Average wage (2025)

$76,285

1-year change: +1.9%
5-year change: +2.0%

Overall price level (2024)

71.5 (United States = 100)

Luxembourg has the higher latest average wage of the two, by 29.2% on a PPP-adjusted basis. Over five years Luxembourg shows the stronger change (+8.3% against +2.0%). Overall consumer prices are higher in Luxembourg, at 96.6 against 71.5 on the United States = 100 scale — a gap of +25.1 index points. Both wage figures are for 2025 and the price levels for 2024, so the two economies are read at the same point in each series.

Wage History

See how PPP-adjusted average annual wages have changed in both economies.

PPP-adjusted annual wage (USD)

LuxembourgGermany

USD PPP, constant 2025 prices

Wage Key Facts

Metric	Luxembourg	Germany
Latest wage	$98,530	$76,285
Latest year	2025	2025
1-year change	+1.1%	+1.9%
5-year change	+8.3%	+2.0%
10-year change	+11.0%	+7.1%
Historical peak	$98,530	$76,285
Peak year	2025	2025
Change from peak	0.0%	0.0%

How the Wage Trends Compare

Current Position

Luxembourg records the higher figure: $98,530 against $76,285, a gap of 29.2%. A difference of that size is one of the wider ones in this dataset, and it holds after the PPP adjustment has already removed price level differences between the two.

Both figures are for 2025, so this is a like-for-like comparison of the same year rather than of two different latest points.

Both use the same basis: PPP-adjusted US dollars at constant prices. That conversion strips out the price level differences between the two economies, which is what makes the two figures comparable at all — neither is a local-currency salary, and neither is what an employer in that country would write on a contract.

Recent Momentum

Germany had the stronger latest year (+1.9% against +1.1%).

Both moved up in the latest year, which leaves the ordering between them unchanged.

Widening the window to five years, the stronger of the two is Luxembourg: +8.3% against +2.0%.

For both economies the latest year points the same way as the five-year change, so the recent movement reads as continuation rather than a turn.

Long-Term Direction

Across ten years both series are up — +11.0% for Luxembourg and +7.1% for Germany. Over this horizon the two share a direction, and the difference between them is one of pace.

Both are at their historical peaks in the latest year, so neither series is currently below a previous high.

The gap has been widening rather than closing over the five-year window: the economy that already reported the higher wage is also the one growing faster.

Consumer Price Level Comparison

Compare eight consumer price categories with the United States benchmark of 100.

United States = 100
Missing values are shown as -

All differences are shown in index points. United States = 100.

Category	Luxembourg	Germany	Difference (LUX − DEU)	LUX vs U.S.	DEU vs U.S.
Overall	96.6	71.5	+25.1	−3.4	−28.5
Food	106	88.7	+17.3	+6.0	−11.3
Clothing	99.7	90.4	+9.3	−0.3	−9.6
Housing	99.4	64.1	+35.3	−0.6	−35.9
Health	77.1	50.7	+26.4	−22.9	−49.3
Transport	101	114	−13.0	+1.0	+14.0
Recreation	97.1	86.6	+10.5	−2.9	−13.4
Restaurants & Accommodation	101	91.1	+9.9	+1.0	−8.9

Overall
Luxembourg96.6
Germany71.5
Difference+25.1
LUX vs U.S.−3.4
DEU vs U.S.−28.5
Food
Luxembourg106
Germany88.7
Difference+17.3
LUX vs U.S.+6.0
DEU vs U.S.−11.3
Clothing
Luxembourg99.7
Germany90.4
Difference+9.3
LUX vs U.S.−0.3
DEU vs U.S.−9.6
Housing
Luxembourg99.4
Germany64.1
Difference+35.3
LUX vs U.S.−0.6
DEU vs U.S.−35.9
Health
Luxembourg77.1
Germany50.7
Difference+26.4
LUX vs U.S.−22.9
DEU vs U.S.−49.3
Transport
Luxembourg101
Germany114
Difference−13.0
LUX vs U.S.+1.0
DEU vs U.S.+14.0
Recreation
Luxembourg97.1
Germany86.6
Difference+10.5
LUX vs U.S.−2.9
DEU vs U.S.−13.4
Restaurants & Accommodation
Luxembourg101
Germany91.1
Difference+9.9
LUX vs U.S.+1.0
DEU vs U.S.−8.9

Luxembourg and Germany in Detail

Current Wage Position

Luxembourg reports a PPP-adjusted average annual wage of $98,530 for 2025, and Germany $76,285 for 2025. That puts Luxembourg ahead by 29.2%.

Both figures are PPP-adjusted: converted using purchasing power parities rather than market exchange rates, and expressed in constant prices so different years stay comparable.

This matters for reading the gap. A market-rate conversion would move with currency markets and would not reflect what the money buys in each economy. These figures are built to compare purchasing power, not to tell you what a currency transfer would be worth.

Recent Wage Momentum

In the latest reported year Luxembourg changed by +1.1% and Germany by +1.9%. A single year is a narrow window, so it is worth reading alongside the five-year figure rather than on its own.

Over five years, Luxembourg records the larger change at +8.3%, against +2.0% for Germany. That is the difference in how far each series has travelled over the medium term, in real PPP-adjusted terms.

Short-term and five-year movement point the same way for both economies, so neither is currently being pulled against its own medium-term direction.

Long-Term Wage Direction

Across ten years the changes are +11.0% for Luxembourg and +7.1% for Germany. This is the longest horizon the data covers, and it is the one least affected by any single year's movement.

Luxembourg reached its highest recorded value of $98,530 in 2025, and the latest figure sits 0.0% from that high.

Germany peaked at $76,285 in 2025, leaving its latest value 0.0% away from that point.

Both long-term series move the same way, so the difference between these two economies is one of degree over ten years rather than of direction.

Consumer Price Profile

Against the United States benchmark of 100, overall consumption sits at 96.6 in Luxembourg and 71.5 in Germany — +25.1 index points apart.

The categories that separate them most are Housing (+35.3) and Health (+26.4).

Clothing is where they are nearest, at 99.7 and 90.4.

Across the categories with data, Luxembourg is the more expensive of the two more often than not.

How to Interpret the Comparison

These are average wages, not median wages, and not take-home pay. An average is pulled by the whole distribution, so it does not describe a typical individual, occupation, city or employer in either economy.

The wage figures are already PPP-adjusted and in constant prices. They are not local-currency salaries and not amounts convertible at a market exchange rate.

The price levels are relative indices against United States = 100. They describe how price levels compare, not what a household actually spends.

Wages and price levels should not be combined into a verdict on which country is better. This page is for understanding how the two wage trends and price structures differ — nothing further follows from it.