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Financial Participation

The findings on the prevalence of workers’ participation schemes in Luxembourg differ. More recent studies show an incidence of participation schemes higher than the European average.

According to the findings of the fifth European Working Conditions Survey (EWCS, conducted in 2012) 1 on the incidence of financial participation across the EU, Luxembourg is above the European average, involving just over 15% of all employees (in all private sector companies). Share ownership is relatively widespread as well, with just over 5% of all employees (in all private sector companies) receiving income from shares in their companies.2

The data from the EWCS3 contrasts with former findings which arrived at the conclusion that participation schemes were very insignificant in Luxembourg. According to those findings annual gratifications, which are not always related to profits, are the most common financial participation schemes as well as shares offered to employees at preferential prices.4 The PEPPER IV Report is a further report pointing to the low prevalence of employee financial participation schemes. Where they do exist, it is generally in multinational companies in the financial sector.5

According to the results of the European Company Survey, a survey of more than 27,000 HR managers in Europe conducted in 2009, 9% of private-sector Luxembourg companies with 10 or more employees offer their employees a profit-sharing scheme. Compared with other European countries, this is a slightly below-average figure (the 30-country European average is 14%). The prevalence of employee profit-sharing schemes in Luxembourg varies according to company size. 9%of companies with 10-49 employees, 10% with 50-199 employees, and 13% of companies with more than 200 employees have a profit-sharing scheme. The survey further shows that 4% of Luxembourg private-sector companies offer their employees share ownership schemes, slightly under the European average of 5%.6

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.