Don’t risk non-compliance with local employment, social insurance, and tax regulations.
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.
Employer costs include Pension, Medical Insurance, and Employer's Mutual Medical Insurance Scheme. Use the OmniCalculator to estimate costs, or contact us for further information.
Income is taxed at progressive rates, which apply to different brackets and at different rates based on whether the employee is single or married.
Working hours in Luxembourg are 8 hours per day, or 40 hours per week for a 5-day work week.
Regulation on working hours does not apply to salaried workers working from home, traveling salespeople, sales representatives, and senior management.
Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.
Employees shall inform the employer on the first day of sick leave and submit a medical certificate by the third day. Sick leave may last up to 6 months in a reference period of 18 consecutive months.
Employers pay 100% of the employee's 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.
Paternity leave: By law, the father is entitled to 10 days of paid paternity leave.
Effective August 2023, employees have been entitled to new types of special leave as follows:
Five-day caregiver leave, and
One-day leave for reasons of force majeure.
Also, the 10 paternity leave has been extended to self-employed workers and same-sex couples
Employees in Luxembourg are entitled to a minimum of 26 working days of paid vacation per year, which doesn't include public holidays.
Entitlement to severance depends on the employee’s length of continuous service with the same employer and ranges between 1 - 12 months of salary.
The length of the notice period depends on the duration of service of the employee: Dismissal of the Employer:
- Less than 5 years = 2 months - Between 5 and 10 years = 4 months; - 10 years and more = 6 months. Resignation of the employee:
- Half of the notice period specified above.
Termination for gross misconduct:
- Possible for both the employee and the employer to terminate with no notice. Payment in lieu of notice is not possible in Luxembourg except when the employee is exempted from work and finds a new job during the notice period.
Employers must notify dismissals to the Social Security Centre (Centre Commun de la Sécurité Sociale).
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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 global employment solutions 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 with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.
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