Credit: Robin Jensen, Chronicle.lu
UK-based fintech company Capital on Tap has announced that Luxembourg ranks among the countries where wage growth has outpaced inflation over the past decade.
In a study published on 13 November 2025, Capital on Tap analysed OECD data from the past ten years to assess how wage growth has compared with inflation across member countries. Luxembourg placed thirteenth overall, with total wages increasing by 38.34% between 2014 and 2024, while cumulative inflation stood at 23.22%, resulting in real, inflation-adjusted wage growth of 12.27%.
According to Capital on Tap, the analysis highlights which countries have managed to protect purchasing power amid rising living costs and which have struggled under prolonged inflationary pressure.
Latvia topped the ranking, recording the strongest wage performance among OECD countries. Between 2014 and 2024, wages rose by 124.16%, and even after accounting for cumulative inflation of 45.80%, workers saw real wage growth of 53.75%. Lithuania followed closely, with wages increasing by 123.36% over the same period and real wage growth reaching 47.01% after inflation of 51.94%.
By contrast, the United Kingdom ranked twenty-fourth in the study. Despite being one of the world’s largest economies, UK wages increased by 36.59% over the decade, while cumulative inflation reached 33.34%, leaving real wage growth at just 2.43%.
Capital on Tap noted that the findings underline growing disparities in how effectively countries have responded to cost-of-living pressures, with real wage growth increasingly shaped by national economic and labour market policies.
The full study can be found at https://www.capitalontap.com/en/blog/posts/pay-pinch-report/
