Hire in Luxembourg

Luxembourg, officially the Grand Duchy of Luxembourg, is one of the world’s smallest countries but ranks among the world’s highest in its standard of living and per capita income. It covers an area of 2,586 km2, and is bordered by Belgium on the west and north, France on the south, and Germany on the northeast and east. Information technology, electronic commerce, international banking, and financial services are among the key industries of Luxembourg’s economy.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Luxembourg.

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A quick overview of Luxembourg

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Cost of living index

$$$ (13 of 139 nations)

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Currency

Euro (€, EUR)

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Payroll frequency

Monthly

Basic facts

Luxembourg, officially the Grand Duchy of Luxembourg, is one of the world’s smallest countries but ranks among the world’s highest in its standard of living and per capita income. It covers an area of 2,586 km2, and is bordered by Belgium on the west and north, France on the south, and Germany on the northeast and east. Information technology, electronic commerce, international banking, and financial services are among the key industries of Luxembourg’s economy.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Luxembourg.

Capital

Luxembourg City

Official language/s

Luxembourgish, German, and French

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Population

668,606 (2023 est.)

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VAT - standard rate

17%

The holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
April 21Easter MondayMovable
May 1Labor Day
May 9Europe Day
May 29Ascension DayMovable
June 9Whit MondayMovable
June 23Grand Duke's Birthday
August 15Assumption
November 1All Saints' Day
December 25Christmas Day1st day of Christmas
December 26Boxing Day2nd day of Christmas

The approximate time for sharing the contract with an employee in Luxembourg is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • The maximum duration of the probation period is based on an employee’s qualification or salary level.
  • The employer is required to send the termination notice to the employee by registered mail or by hand-delivering to the employee, who must sign a receipt or a duplicate of the letter in acknowledgment.
  • When the consumer price index increases or decreases by 2.5% during the previous semester, salaries are normally adjusted by the same proportion.
  • An employer employing less than 20 employees may opt, in the letter of dismissal, either for the payment of severance or for the extension of the notice periods.

The Luxembourg social security system is a single unified system.

The affiliation provides cover for the employee for:

  • Sickness;
  • Family allowances;
  • Pension benefits;
  • Long-term care benefits;
  • Accident insurance;
  • Occupational health, etc.

Employers’ contribution to the social security system ranges between 12.54% and 14.92% as summarized in the table below:

Benefits Employer Contributions
Pension (Pension) 8%
Sickness care (Maladie – soins de santé) 2.8%
Sickness cash (Maladie – prestations en espèces) 0.25%
Long-term care insurance (Dépendance)
Accident Insurance (Accident) 0.70%
Occupational Health (Santé au travail) 0.14%
Employers’ Mutual Funds (Mutualité des Employeurs)
  • 0.72% (Class 1)
  • 1.22% (Class 2)
  • 1.76% (Class 3)
  • 2.84% (Class 4)

For 2025, the minimum contribution base is €2,638, while the maximum contribution base is €13,189.

Working Hours

Working time may not exceed eight hours per day and 40 hours per week. The maximum working time may not exceed 10 hours per day, 48 hours per week.

Overtime

Overtime must not exceed two hours per day under any circumstances. It is either compensated by paid rest time, at the rate of 1.5 hours of paid rest time per hour of overtime worked, or recorded at the same rate in a time savings account.

Probation Period

The following table summarizes the applicable statutory probation periods:

Employee Classification Probation Period
Regular employees At least 2 weeks and at most 6 months
Employees who do not have a vocational skills certificate (Certificat d’Aptitude Technique et Professionnelle) or vocational diploma (Diplôme d’Aptitude Professionnelle) and its equivalent Maximum of 3 months
Employees who have a vocational skills certificate (Certificat d’Aptitude Technique et Professionnelle) or vocational diploma (Diplôme d’Aptitude Professionnelle), or its equivalent, or a higher level of training Maximum of 6 months
Employees who receive a gross monthly salary of at least €536 or more at the index value of 100 (i.e. €4,700.77 at the current index value) Maximum of 12 months
Termination Notice Period

The termination notice periods depend on the contract stage (during or after probation), contract length, and employees’ length of continuous employment as follows:

Contract Stage Service Length* Employer Notice Period Employee Notice Period*
During Probation Stage 2 weeks Cannot be terminated except for serious misconduct Cannot be terminated except for serious misconduct
3 weeks 3 days 3 days
4 weeks 4 days 4 days
2 months 15 days 15 days
3 months 15 days 15 days
4 months 16 days 16 days
5 months 20 days 20 days
6 months 24 days 24 days
7 months 28 days 28 days
8 month 1 month 1 month
9 months 1 month 1 month
10 months 1 month 1 month
11 months 1 month 1 month
12 months 1 month 1 month
After Probation Stage* Less than 5 years 2 months 1 month
At least 5 years and less than 10 years 4 months 2 months
10 years and above 6 months 3 months

*NOTE: The probation period not exceeding one month must be expressed in whole weeks, and the probation period exceeding one month must be expressed in whole months.

Working Hours

Working time may not exceed eight hours per day and 40 hours per week. The maximum working time may not exceed 10 hours per day, 48 hours per week.

Overtime

Overtime must not exceed two hours per day under any circumstances. It is either compensated by paid rest time, at the rate of 1.5 hours of paid rest time per hour of overtime worked, or recorded at the same rate in a time savings account.

Probation Period

The following table summarizes the applicable statutory probation periods:

Employee Classification Probation Period
Regular employees At least 2 weeks and at most 6 months
Employees who do not have a vocational skills certificate (Certificat d’Aptitude Technique et Professionnelle) or vocational diploma (Diplôme d’Aptitude Professionnelle) and its equivalent Maximum of 3 months
Employees who have a vocational skills certificate (Certificat d’Aptitude Technique et Professionnelle) or vocational diploma (Diplôme d’Aptitude Professionnelle), or its equivalent, or a higher level of training Maximum of 6 months
Employees who receive a gross monthly salary of at least €536 or more at the index value of 100 (i.e. €4,700.77 at the current index value) Maximum of 12 months
Termination Notice Period

The termination notice periods depend on the contract stage (during or after probation), contract length, and employees’ length of continuous employment as follows:

Contract Stage Service Length* Employer Notice Period Employee Notice Period*
During Probation Stage 2 weeks Cannot be terminated except for serious misconduct Cannot be terminated except for serious misconduct
3 weeks 3 days 3 days
4 weeks 4 days 4 days
2 months 15 days 15 days
3 months 15 days 15 days
4 months 16 days 16 days
5 months 20 days 20 days
6 months 24 days 24 days
7 months 28 days 28 days
8 month 1 month 1 month
9 months 1 month 1 month
10 months 1 month 1 month
11 months 1 month 1 month
12 months 1 month 1 month
After Probation Stage* Less than 5 years 2 months 1 month
At least 5 years and less than 10 years 4 months 2 months
10 years and above 6 months 3 months

*NOTE: The probation period not exceeding one month must be expressed in whole weeks, and the probation period exceeding one month must be expressed in whole months.

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The Luxembourg social security system is a single unified system.

The affiliation provides cover for the employee for:

  • Sickness;
  • Family allowances;
  • Pension benefits;
  • Long-term care benefits;
  • Accident insurance;
  • Occupational health, etc.

Employers’ contribution to the social security system ranges between 12.54% and 14.92% as summarized in the table below:

Benefits Employer Contributions
Pension (Pension) 8%
Sickness care (Maladie – soins de santé) 2.8%
Sickness cash (Maladie – prestations en espèces) 0.25%
Long-term care insurance (Dépendance)
Accident Insurance (Accident) 0.70%
Occupational Health (Santé au travail) 0.14%
Employers’ Mutual Funds (Mutualité des Employeurs)
  • 0.72% (Class 1)
  • 1.22% (Class 2)
  • 1.76% (Class 3)
  • 2.84% (Class 4)

For 2025, the minimum contribution base is €2,638, while the maximum contribution base is €13,189.