Cost of living

The risk of poverty: a reality despite everything

The guaranteed minimum income (revenu minimum garanti) is a tool in the fight against social exclusion

The at-risk-of-poverty rate is defined as the percentage of people with incomes below 60% of the median equivalised income. In Luxembourg, for the year 2015, the median equivalent income was 35,270 euros per year, and the annual risk of poverty threshold was therefore 21,162 euros. In contrast to previous years, the Luxembourg poverty risk rate has dropped considerably between 2014 and 2015. Moreover, with a value of 15.3%, this rate is significantly different from the euro area average of at 17.2%. Among the members of the zone, Luxembourg is the one whose rate decreases the most (-6.7%). However, in the longer term, it is one of the countries whose risk of poverty is increasing considerably, with an average increase of 1.1% per year since 2005. It is thus ahead of all neighboring countries, except Germany. which has experienced a sharp rise in the risk of poverty rate over the last ten years (on average + 3.2% per year).

A guaranteed minimum wage

In Luxembourg, one of the main ways of fighting against poverty and social exclusion is the guaranteed minimum income(RMG). Indeed, people whose income is below a certain threshold, considered a living wage, benefit, thanks to the RMG, from financial aid, which is supposed to enable them to recover. In 2012, the majority of RMG recipients (59.71%) were single people without dependent children, followed by single-parent households (15.86%).

The award of the RMG is subject to age, residence and income conditions. Please visit the Citizens portal for more information.

  • Updated 17-11-2017