Luxembourg

Luxembourg

Global Employment Solutions & PEO in Luxembourg

Omnipresent makes it fast and easy to employ remote talent in Luxembourg. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Luxembourg City
Currency
Euro
Native Language
German, French, Luxembourgish
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
High
Termination
Difficult
Immigration
Easy
Cost of Living
High
Population
635,800

What You Need to Know About Employing in Luxembourg

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Luxembourg

How Do Omnipresent Global Employment Solutions Work?

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. 

  • Your company conducts the hiring and candidate selection process in Luxembourg.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Luxembourg.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Luxembourg.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Payroll & Taxes in Luxembourg


Employee Income Taxes:

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. 

Payroll Cycle:

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.

Luxembourg

Employer Costs in Luxembourg


Employer Contributions:

Employee’s social security contribution is 12.45%. 

Employee Contributions:

Employer’s contribution range between 12.36% to 14.61%.

Luxembourg

Working Hours in Luxembourg


Typical Working Hours per Week:

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 Laws:

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.

Luxembourg

Public Holidays & Vacation Time in Luxembourg


Standard Public Holidays in Luxembourg:

  • New Year’s Day
  • Easter Monday
  • Labour Day
  • Europe Day
  • Ascension Day
  • Whit Monday
  • Grand Duke’s Official Birthday
  • Assumption of Mary
  • All Saints’ Day
  • Christmas Day
  • Saint Stephen’s Day

Vacation Time in Luxembourg:

Employees are entitled to a minimum of 26 paid vacation days per year, not including public holidays.

Luxembourg

Types of Leave in Luxembourg


Sick Leave:

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).

Maternity Leave:

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:

  • Protection against hazardous work
  • Protection against dismissal during the first 12 weeks after birth
  • Exemption from overtime and night work

Paternity Leave:

By law, the father is entitled to 10 days of paid paternity leave. 

Other Types of Leave:

Employees may take an unpaid leave of absence in certain circumstances provided by the law, including for:

  • Family Reasons
  • When a member of the family is ill and needs continuous care.
Luxembourg

Health Insurance & Supplementary Benefits in Luxembourg

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.

Luxembourg

Termination & Severance in Luxembourg


Termination with Cause:

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:

Severance pay depends on length of service, as follows:

  • Less than 5 years of service: no severance
  • Between 5 and 10 years of service: 1 month salary
  • Between 10 and15 years of service: 2 months salary
  • Between 15 and 20 years of service: 3 months salary
  • Between 20 and 25 years of service: 6 months salary
  • Between 25 and 30 years of service: 9 months  salary
  • Over 30 years of service: 12 months salary

Notice of Termination:

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.

Luxembourg

Grow your global team. 

Employ the best talent, anywhere in the world.

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.

Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

Curious to learn more?
Book a Call