So renting a one-bedroom apartment is say €1200. If you are not supposed to spend more than 1/3 of your income on rent then you have to net at least €3600.
Gross got to be €4800 or so (? – Dunno but something up there). Which means 70% of people cannot afford to rent a one-bedroom apartment.
Which is shitty. But we knew that.
So basically relatively poorly paied private sector employess pay high taxes for paying high salaries for state/public employees
According to my boss: yes
According to me: I’m close to poverty line
Oh and btw I think some party want to get rid of the indexation mechanism?
Okay, a related question than. How do people get rich there in Luxembourg then, if the rental prices are extremely high, everything is expensive but the salaries are not that high?
Add to this the article on wages in Lux ranking highest in the EU and you get a feeling that it is becoming for smaller sized businesses to survive here, be it due to rent or labour cost.
I became self-employed myself and I am lucky enough that my activity can be done with a laptop from anywhere most of the time, yet I am still getting squeezed left and right, high rent, requirement to have a dedicated office address and social security charges that go up while not necessarily warranting an increase in income.
I am happy enough to withdraw about EUR 2,500 / month but it is safe to say that rent and social security charges alone represent EUR 2,000. I am aware that no one forces you to take on the risks of self-employment but shouldn’t a government’s goal be to actually promote the creation of small and medium businesses? Aren’t politicians always talking about how SMEs are the backbone of any economy. In Luxembourg, unless you have deep pockets already, getting self employed is basically a years long crash course on how to handle poverty here.
We may bank everything on the financial industry and government workers, but the first is highly volatile and once in tatters not providing money for the latter that does in itself not create much value. In terms of economic diversification, that is hardly future proofing the economy.
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The answer made me even more depressed.
So renting a one-bedroom apartment is say €1200. If you are not supposed to spend more than 1/3 of your income on rent then you have to net at least €3600.
Gross got to be €4800 or so (? – Dunno but something up there). Which means 70% of people cannot afford to rent a one-bedroom apartment.
Which is shitty. But we knew that.
So basically relatively poorly paied private sector employess pay high taxes for paying high salaries for state/public employees
According to my boss: yes
According to me: I’m close to poverty line
Oh and btw I think some party want to get rid of the indexation mechanism?
Okay, a related question than. How do people get rich there in Luxembourg then, if the rental prices are extremely high, everything is expensive but the salaries are not that high?
Add to this the article on wages in Lux ranking highest in the EU and you get a feeling that it is becoming for smaller sized businesses to survive here, be it due to rent or labour cost.
I became self-employed myself and I am lucky enough that my activity can be done with a laptop from anywhere most of the time, yet I am still getting squeezed left and right, high rent, requirement to have a dedicated office address and social security charges that go up while not necessarily warranting an increase in income.
I am happy enough to withdraw about EUR 2,500 / month but it is safe to say that rent and social security charges alone represent EUR 2,000. I am aware that no one forces you to take on the risks of self-employment but shouldn’t a government’s goal be to actually promote the creation of small and medium businesses? Aren’t politicians always talking about how SMEs are the backbone of any economy. In Luxembourg, unless you have deep pockets already, getting self employed is basically a years long crash course on how to handle poverty here.
We may bank everything on the financial industry and government workers, but the first is highly volatile and once in tatters not providing money for the latter that does in itself not create much value. In terms of economic diversification, that is hardly future proofing the economy.