Education in the German-speaking Community is financed through the Community’s own budget. The primary sources of revenue are an endowment from the federal government, financial contributions from the Walloon Region for the implementation of transferred competences, particularly in the field of employment, and a share of the radio and television license fees paid by residents of the Community.

It is worth noting that the State of Luxembourg has, for several years, contributed to the education expenditure of the German-speaking Community, particularly in the field of special needs education. This is due to the high number of Luxembourgish pupils attending these schools.

The federal endowment was adjusted in 1989 to account for the expected additional costs following the transfer of responsibilities for education to the German-speaking Community. However, as educational expenditures increased significantly in the subsequent years due to an unexpected rise in pupil numbers, the federal government decided in 2000 to increase the endowment accordingly.

In 2024, the German-speaking Community’s total revenue amounted to €898,192,177, while total expenditure stood at €815,868,520.

Budget planning 2025

In 2025, 73.9% of the total budget allocated to education, employment, and training will be spent on teaching salaries and related social security contributions. Personnel structures and legal changes affecting staff costs are closely monitored, as are changes to index figures.

Since long-term developments cannot always be predicted, the budget can be adjusted during the financial year. Typically, this is done through two revisions per year.

To avoid financial shortfalls within the overall Community budget, meticulous planning based on all available data is essential when drafting the budget. Even minor miscalculations can significantly affect a total budget of around €140 million.

The total budget for the fields of education, employment, and training in 2025 amounts to approximately €190 million. It is divided into ten programs, which are further broken down into specific allocations. In addition to personnel costs, dedicated programs exist for:

• Pedagogy,
• School transportation,
• Grants and subsidies,
• Adult education and continuing training,
• Study grants, scholarships, and scientific research,
• Arts education,
• Extracurricular education and vocational training (SMEs and agriculture),
• Employment, and
• School infrastructure.

Private funds

In addition to public funds, there are minor sources of private income, such as donations, support from businesses, and proceeds from events or the institutions’ own activities. However, these sources play only a limited role.

Conditions for public funding

In order to be recognized and receive subsidies as a school, the following conditions must be met:

• Approval of the school structure by the competent Minister,
• Approval of curricula by the Minister of Education,
• Acceptance of official supervision,
• Existence of a responsible school authority,
• Compliance with minimum pupil numbers per education level,
• Facilities that meet hygiene, safety, and habitability standards,
• Use of appropriate teaching and learning materials,
• Formation of a cohesive educational unit within a building or community,
• Employment of teachers who pose no health risk,
• Adherence to the official school calendar, including holidays and public breaks.

Areas of funding

Education funding in the German-speaking Community focuses on three main areas: personnel costs, operating costs, and building costs.

Salaries and salary subsidies (100%) for all staff in both public and private educational institutions—including school leadership, teachers, educators, administrative staff, and other employees—are paid by the German-speaking Community, provided legal requirements, particularly regarding qualifications and employment conditions, are met.

As far as operating costs are concerned, community schools (GUW) are organized and fully financed by the Community, receiving a lump sum to cover operating and procurement costs.

Subsidized schools in both the official (OSUW) and free (FSUW) sectors receive annual operating grants that cover a large share of their costs. Additional funds are allocated for educational purposes (e.g. teaching materials, extracurricular activities, continuing professional development), as well as to reduce the cost of school attendance. The latter ensures that families do not have to pay for items such as photocopies, notebooks, swimming lessons, or one-day school trips. Lunch supervision at subsidized schools is also supported.

Each school authority is responsible for the construction and maintenance of its school buildings. In the 1990s, the German-speaking Community made considerable efforts to support independent school providers in financing their infrastructure. In recent years, some school buildings have even been taken over directly by the Community.

Subsidized school authorities, both municipal and private, can receive funding within the limits of the budget for:

• 80% of approved construction costs,
• 60% of approved costs for furnishings and equipment (e.g. furniture, IT equipment).

The public service "Service and Logistics" has operated independently since 2013. It gradually assumed responsibility for maintenance and cleaning of community schools and also supports school transportation.

Over the past years, the German-speaking Community has launched a large-scale investment program in the education sector. Primary schools, secondary schools, and the Autonome Hochschule have been extensively renovated or completely rebuilt. Further major infrastructure projects are currently underway or in planning.