Banking Salaries in Luxembourg 2025: Key Trends and Insights

While Luxembourg continues to hold its position as a strategic international financial hub, salary trends in the banking sector reflect a market that is evolving slowly but steadily. Our latest 2025 Salary Study (featured by Delano, and Luxembourg Times) provides a detailed overview of compensation for 27 banking roles. So, what are the key takeaways? 

A Cautious Market with Moderate Salary Increases

Despite an appearance of economic stability, banks in 2024 maintained a cautious approach to recruitment: new job creation was rare, and replacements were highly targeted. Most institutions focused on strengthening existing teams rather than expanding headcount. 

As a result, salary increases were generally modest, often driven by inflation adjustments or the hiring of highly specialized profiles. 

The Most In-Demand Roles in Luxembourg’s Banking Sector 

Certain job families continue to stand out: 

• Compliance & AML/KYC – Steady but moderate salary growth, paired with consistently high demand. Salaries range from €55k to €115k depending on seniority. Certified professionals (CAMS, CKYCA) are especially sought after. 
• Risk Management – Also in high demand, with salaries reaching up to €120k for a Head of Risk. 
• Private Banking & Relationship Management – The front office is making a strong comeback, especially in corporate banking. Senior Relationship Managers can earn up to €180k gross annually. 

Leadership Roles with Notable Pay Gaps 

Salary transparency is improving, yet a glass ceiling remains in certain functions. CEOs can earn between €220k and €400k, while even experienced Chief Compliance Officers generally max out around €200k. Gender inequality persists: for example, 82% of CEO positions are still held by men, according to our study. 

New trends to Watch in the Banking Sector in Luxembourg

• Corporate Banking services for alternative funds (FX, payments, financing): a niche area currently hiring. 
• Automation and AI : central to strategic plans but not yet significantly impacting recruitment; this could change within 2–3 years. 
• Talent management: retention challenges are pushing HR teams to review salary structures and benefits packages. 

Key Salary Figures from the Banking Salary Study

This study provides a clear snapshot of compensation practices in Luxembourg’s banking market. For HR leaders and recruitment professionals, it is a valuable tool to benchmark salary positioning against competitors, anticipate pressure on certain roles, and fine-tune HR strategies in an increasingly competitive environment. 

Every data point can guide better decision-making, whether your priority is retention, attraction, or restructuring. 

Morgan Philips Luxembourg, recruitment firm specializing in Banking & Fintech, has been supporting banks in the Grand Duchy for over 10 years. Our in-depth understanding of roles, candidate expectations, and HR challenges makes us a strategic partner for HR and executive teams.