Luxembourg is a constitutional monarchy. Its democratic, parliamentary government is headed by the Prime Minister who leads the party with most seats in the Chamber of Deputies. The Grand Duke's role is largely ceremonial. He appoints the Council of State that serves as an advisory body to Parliament. Elections in 2005, held on the basis of universal suffrage, were deemed free and fair.

Discrimination on the basis of race or sex is prohibited, and the legislation is generally enforced. The judiciary is independent. Reports do not indicate that the Grand Ducal Police or security forces commit human rights abuses. The European Commission on Racism and Intolerance has asked Luxembourg to increase the amount of human rights training for police and other officials dealing with minorities and refugees.

Supreme Court judges are appointed by the Grand Duke, who heads the judicial system. The market economy is based on industrial and service sectors and provides a high standard of living and level of social benefits.

Freedom of speech and of the press are guaranteed and respected. Financial support is provided to recognised churches. The salaries of Roman Catholic, Protestant, Orthodox and Jewish clergy are paid by the state. The Muslim community has named a representative to discuss similar funding for Muslim clergy.

Education is free and compulsory for children aged 4 to 15; school attendance is universal for these ages. Education remains free to age 18. Some financial assistance is available for postsecondary education.

A 3-year programme begins at age 3. At this level 5% of education is private. The Net Enrolment Rate (NER) is 73%. Of the 1,067 ECE teachers, 98% are women. The pupil/teacher ratio (PTR) is 14 : 1.

Education is compulsory for ages 6 to 15. Primary school begins at age 6 and continues for 6 years. At this level 7% of education is private. The NER is 90% (49% female). Of students who enrol in Grade 1, 82% reach the last grade of primary school. 5% of students repeat grades. There are 2,966 primary teachers (69% female). The PTR is 11 : 1.

Secondary education begins at age 12 and is completed in 7 years. At this level 18% of education is private. 65% of students in upper secondary education study in technical vocational programmes. The NER is 80%. There are 3,279 secondary teachers (43% female). The PTR is 11 : 1 in secondary school.

3,077 students (53% female), for a Gross Enrolment Rate of 12%.
At the same time, 6,743 students from Luxembourg study abroad, mainly in the USA (1,822), Germany (1,192), France (849), the UK (799) and Saudi Arabia (370).

Discrimination against persons with disabilities is illegal in education and in other state services. Assistance is provided for persons with disabilities to receive professional education and find employment. Businesses with 25 or more employees that hire workers with disabilities and pay them the regular wage are provided with subsidies and tax breaks. Children are provided with special services as required.

The law provides for the granting of asylum or refugee status in accordance with the 1951 UN Convention Relating to the Status of Refugees and its 1967 Protocol, and the government has established a system for providing protection to refugees. It cooperates with the UNHCR. The European Commission on Racism and Intolerance (ECRI) urges Luxembourg to provide increased services to refugees. Health and education benefits are required for asylum-seekers whose claim was rejected but who remain in the country and require assistance until their situation is resolved.

Luxembourg is a homogenous society that has been formed from various European groups over the centuries. The minorities that exist currently are refugees and asylum-seekers who are reported on above.

Academic freedom is not restricted.

Women have equal rights in law. Legislation spells out the right to equal pay for work of equal value, but women are paid 20% to 30% less than men, a disparity officially attributed to maternity leave and career interruption. Without a prenuptial agreement, property is divided equally upon the break-up of a marriage. Women constitute 37.4% of the work force.

A new law on domestic violence strengthens support for victims. Police file charges to protect victims from intimidation and to stop charges from being dropped.

The minimum age for employment is 16. Apprentices must attend school in addition to job training. Workers under 18 have limitations on hours of continuous work. Enforcement of child labour laws is vigilant.

Workers have the right to form and join trade unions. Some 50% of workers are union members. Collective bargaining is widely practised, and the workers have the right to strike, except those who provide essential services. Forced or compulsory labour is prohibited and does not occur. Minimum wage rates vary according to age and number of dependants.

The minimum wage for a single worker over 18 is about US$1,820 (1,403 euros) a month for unskilled workers and US$2,190 (1,684 euros) a month for skilled workers; this is not enough to provide a decent standard of living for a worker and family. Most employees earn more than the minimum wage.