.png)
* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
In Luxembourg, salaries are influenced by the consumer price index. If the index changes by 2.5% in the previous semester, salaries are typically adjusted by the same percentage.
Luxembourg offers high wages thanks to its skilled, multilingual workforce fluent in French, German, and Luxembourgish.
Luxembourg, known for its wealth and stable economy, holds the top spot for the world's highest GDP per capita rate.
The financial sector dominates Luxembourg's economy, contributing 36% to the total GDP, followed by the industry at 13.3%.
In Luxembourg, employment contracts are typically indefinite, but for fixed-term contracts, strict regulations apply under the Labor Code. Both types necessitate written form and mutual understanding, with no language requirements. Contracts should encompass essential employment details, including:
Probation periods generally last between 2 weeks and 6 months, with varying limits based on skills and salary. Unskilled workers have a maximum trial period of 3 months, while those earning over 5 times the minimum wage can trial for up to 12 months.
The regular working hours are 40 hours per week in Luxembourg, employees can work 8 hours a day.
Overtime in Luxembourg is capped at 2 hours per day and 8 hours per week, compensated at 150% of the regular salary or compensated with paid time off. Sunday work is restricted unless otherwise specified, with specific compensation arrangements.
Luxembourg boasts one of the highest minimum wages in Europe, set at €14.86 per hour. This rate reflects the country's high cost of living and strong labor protections, ensuring workers can maintain a good standard of living. Regular adjustments keep the wage aligned with economic conditions, reinforcing Luxembourg's commitment to fair compensation.
In Luxembourg, it's common to receive a 13th salary. This payment is equal to one month's salary usually given at the end of the year.
Luxembourg's income tax system is intricate. Individual income tax rates range from 8% to 42%, calculated based on progressive rates, marital status, and the number of children an employee has.
Employers, employees, and the State contribute 8% each to the general pension insurance scheme. The fund covers old-age pensions, disability pensions, and survivors' pensions. The retirement age is 65.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Luxembourg tailored to your needs.
Termination procedures vary based on employment and collective agreements, contract type, and reasons for termination. Employers with over 150 employees must conduct a hearing before dismissal, and those with at least 15 employees must inform the economic committee about dismissals. Valid reasons for termination include:
If a collective agreement specifies notice periods that differ from statutory ones, both employer and employee must follow the collective agreement's notice periods. The notice duration depends on the length of service.
In Luxembourg, employees terminated without proper notice or with over 5 years of service are entitled to severance pay. It equals 30 days of salary per year, capped at 25 months of base compensation.
Luxembourg has 11 mandatory national holidays in a year.
Luxembourg's social security system is a unified entity. Employers contribute between 12.54% and 14.92% of an employee's salary. This affiliation covers various aspects for employees, including:
At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.
It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.
Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.
.webp)
Access a free set of tools to navigate international hiring across 180+ countries, while staying up to date on hiring news with global insights into the changing employment landscape from Playroll.
.png)
