Luxembourg
Hire Employees & Contractors

Luxembourg

Compliantly hire your distributed team members in

Luxembourg

Person working on laptop

Hiring in

Luxembourg

isn't so simple. Borderless can help.

To hire new employees in

Luxembourg

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Luxembourg

while staying fully compliant with local laws and compliance.

Primary Language

Luxembourgish, German, French

Currency

Euro (€, EUR)

Payroll Frequency

Monthly or weekly

Public Holidays

11 days

Employer Taxes

12.72 - 14.89%

Cost of Living Index

$$$$ (14 of 140 nations)

Statutory Leave

26 days

Sick Leave

77 days

Maternity Leave

20 weeks

Important: Risks of misclassification

In many countries like

Luxembourg

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

  • EUR 2,447.07 per month for non-graduate workers
  • EUR 2936 per month for graduate workers with certifications

Overtime Pay

After 40 hours, work is considered overtime.

Overtime is paid at 150% of the hourly rate or 1.5 hours of time off per hour of overtime.

Additional Pay

Luxembourg offers Education and Training leave, which allows employees to take 80 days of career development leave fully paid.

Payroll Cycle

For all Borderless customers, payments will be made in equal monthly instalments on or before the last working day of each calendar month.

Employer Costs & Taxes

  • 8%: Pension contribution
  • 2.8 - 3.05%: Sickness benefit contribution
  • 1.4%: Dependence insurance charged on monthly wages, less €535.50 per month

Employee Costs & Taxes

  • 0%: Up to €11,265
  • 8%: €11,265 - 13,173
  • 10%: €13,173 - 15,081
  • 12%: €15,081 - 16,989
  • 14%: €16,989 - 18,897
  • 16%: €18,897 - 20,805
  • 18%: €20,805 - 22,713
  • 20%: €22,713 - 24,621
  • 22%: €24,621 - 26,529
  • 24%: €26,529 - 28,437
  • 26%: €28,437 - 30,345
  • 28%: €30,345 - 32,253
  • 30%: €32,253 - 34,161
  • 32%: €34,161 - 36,069
  • 34%: €36,069 - 37,977
  • 36%: €37,977 - 39,885
  • 38%: €39,885 - 41,793
  • 39%: €41,793 - 100,000
  • 40%: €100,002 - €150,000
  • 41%: €150,000 - €200,004
  • 42%: €200,004+

Employment Information

Termination Process

Employee contracts may be terminated with just cause, such as poor performance, fraud or negligence.

Notice period

The notice period depends on the length of employment: 

  • Less than 5 years of employment: 2 months’ notice
  • 5-10 years of employment: 4 months’ notice
  • 10+ years of employment: 6 months’ notice

Probation Period

The probation period varies per employment agreement.

The minimum period is 90 days and the maximum is 180 days.

Severance Details

Severance pay varies on the reason for termination and the length of employment:

  • Less than 5 years-: No severance pay
  • 5-10 years: 1 month severance pay or the notice period can be extended by 5 months for employers with less than 20 employees
  • 10-15 years: 2 months’ severance pay or the notice period can be extended by 8 months for employees with less than 20 employees
  • 15-20 years: 3 months’ severance pay or the notice period can be extended by 9 months for employers with less than 20 employees
  • 20-25 years: 6 months’ severance pay or the notice period can be extended by 12 months for employers with less than 20 employees
  • 25-30 years: 9 months’ severance pay or the notice period can be extended by 15 months
  • 30+ years: 12 months’ severance pay or the notice period can be extended by 18 months
Benefits of working in a country abroad

Borderless Benefits Packages in

Luxembourg

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

Luxembourg

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo