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.


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What You Need to Know About Employing in Luxembourg

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

Select any of the categories below to learn more, and even review our employee cost salary calculator in Luxembourg.

How it works
Employer Costs
Employee Income Taxes
Employee Social Contributions
Working Hours
Holidays & Vacation
Sick Leave Entitlement
Parental Leave
Annual Leave Entitlement
Severance Pay Entitlement
Employment Cost Calculator

How does Omnipresent Global Employment Solutions work in Luxembourg?

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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Employer Costs in Luxembourg

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.


Employee Income Taxes in Luxembourg

Income is taxed at progressive rates, which apply to different brackets and at different rates based on whether the employee is single or married.


Employee Social Contributions in Luxembourg

Employee contributions include Pension, Health Insurance, and Long-term Care Insurance.


Working Hours in Luxembourg

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.


Holidays & Vacation in Luxembourg

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.

  • Sunday, Jan 01, 2023 - New Year's Day (Nouvel An)
  • Monday, Apr 10, 2023 - Easter Monday (Lundi de Pâques)
  • Monday, May 01, 2023 - Labour Day (1er mai)
  • Tuesday, May 09, 2023 - Europe Day (Journée de l'Europe)
  • Thursday, May 18, 2023 - Ascension Day (Ascension)
  • Monday, May 29, 2023 - Whit Monday (Lundi de Pentecôte)
  • Friday, Jun 23, 2023 - National Holiday (Fête nationale)
  • Tuesday, Aug 15, 2023 - Assumption (Assomption)
  • Wednesday, Nov 01, 2023 - All Saints' Day (Toussaint)
  • Monday, Dec 25, 2023 - Christmas Day (Noël)
  • Tuesday, Dec 26, 2023 - Boxing Day (Lendemain de Noël)

Sick Leave Entitlement in Luxembourg

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).

Parental Leave in Luxembourg

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. 

Annual Leave Entitlement in Luxembourg

Employees in Luxembourg are entitled to a minimum of 26 working days of paid vacation per year, which doesn't include public holidays.

Severance Pay Entitlement in Luxembourg

Entitlement to severance depends on the employee’s length of continuous service with the same employer and ranges between 1 - 12 months of salary.

Termination in Luxembourg

Termination is permissible with immediate effect for gross misconduct, or with notice for real and serious cause connected to an employee's attitude, aptitude, or for the operating needs of the business (i.e., economic grounds).

Employers must notify dismissals to the Social Security Centre (Centre Commun de la Sécurité Sociale).

Global Employment Cost Calculator in Luxembourg

Estimate employment costs with OmniCalculator

Get an estimate of the employment costs for hiring in Luxembourg.

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- annual salary
Base Salary
Employer's Costs (Estimate)
Social Security - Unemployment insurance contribution
GBP 695.47
Health Insurance
GBP 695.47
Average Monthly Employer Cost *

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 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.

Want to onboard an international employee today? Get started.

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.

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