Several EU institutions with staff based in Luxembourg have adopted a new measure to help their staff in Luxembourg cope with high living costs. Eligible EU staff members in specific grades will be able to receive a housing allowance that can go up to 500 euros per month. This housing allowance can be combined with housing support measures provided by the Luxembourg state. 

A 2022 Commission report highlighted that the main difference between Luxembourg and Brussels in terms of living expenses lies in housing costs, making accommodation within the Grand Duchy less affordable. The EU institutions present in Luxembourg established a high-level interinstitutional working group to identify measures to improve the attractiveness of the EU civil service in Luxembourg. The housing allowance is one of the key outcomes of their efforts.