Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Luxembourg. Traditional methods of establishing global employment and subsidiaries in Luxembourg typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Luxembourg in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
Tax is calculated in accordance with a progressive table, ranging from 8% on taxable income in excess of EUR 11,265 to 42% on income in excess of EUR 200,004. A further “solidarity tax” between 7% and 9% must also be paid.
Employees in Luxembourg are paid monthly. Luxembourgish employees can also expect a strong customary (but not mandatory) thirteenth salary, or end-of-year bonus that is paid to employees in December.
Employee’s social security contribution is 12.45%.
Employer’s contribution range between 12.36% to 14.61%.
The typical work week in Luxembourg consists of 40 hours per week or 8 hours per day.
It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!
Overtime in Luxembourg is strictly regulated.
When permitted, overtime is limited to 2 hours per day within the limit of a 48 hour week. Overtime is prohibited for pregnant women.
Employees in Luxembourg are entitled to a minimum of 26 working days of paid vacation per year, which doesn't include public holidays.
Employees shall inform the employer on the 1st day of sick leave and submit a Medical Certificate by the 3rd day. Sick leave may last up to 6 months in a reference period of 18 consecutive months.
Employers pay 100% salary up to the 77th day of sick leave (whether consecutive or not).
Luxembourg has strong maternity leave regulations. Mothers are entitled to 20 weeks maternity leave, 8 weeks before and 12 weeks after birth.
Pregnant women and post-pregnancy employees have additional rights, including:
By law, the father is entitled to 10 days of paid paternity leave.
Employees may take an unpaid leave of absence in certain circumstances provided by the law, including for:
We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.
There are a range of reasons to lawfully terminate an employment relationship in Luxemburg, depending on the specific circumstances. If you would like to know more specific details, please contact us.
Severance pay depends on length of service, as follows:
The duration of the notice period depends on the length of service, as follows: two months’ notice for five years’ continuous service; four months’ notice between five and ten years of continuous service; six months’ notice for ten years or over of continuous service.
The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Luxembourg are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
Omnipresent makes it easy to hire, pay, and support your international team. Book a call with us to start building your global team today.
Employ Anywhere. Be Omnipresent.