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EOR Partners in Luxembourg
Employ in Luxembourg
Expanding your business into Luxembourg offers a strategic advantage in the heart of Europe. With its robust economy, favorable tax regime, and strategic location, Luxembourg provides a conducive environment for international enterprises seeking growth and regional influence.
About the Country of Luxembourg
Luxembourg, a landlocked country in Western Europe, is a member of the European Union and the Eurozone. It boasts a population of approximately 645,000 people and utilizes the Euro (EUR) as its official currency. The country's GDP stands at around €71 billion, reflecting a resilient and diversified economy.
668,606
Population
Euro
Currency
85.76 Billion
Global Domestic Product
Why Choose Luxembourg For Global Expansion?
Strategic Location: Situated at the crossroads of major European markets, Luxembourg serves as a gateway to diverse markets, facilitating international trade and business operations.
Favorable Tax Regime: Luxembourg offers a competitive corporate tax rate of 24.94%, along with an extensive network of double taxation treaties, enhancing its appeal to foreign investors.
Business-Friendly Environment: The country provides a stable political climate, a transparent legal system, and a robust infrastructure, all of which support efficient business operations.
Skilled Workforce: Luxembourg boasts a highly educated, multilingual workforce, with a significant portion proficient in English, facilitating seamless business communications.
Employment Landscape
Luxembourg's employment framework is governed by a combination of statutory laws and collective agreements, ensuring fair labor practices and employee rights. The standard workweek is capped at 40 hours, with specific regulations varying across industries.
Our Services in Luxembourg
Payroll Management: Ensuring accurate and timely salary disbursements in compliance with local tax laws.
HR Support: Providing assistance with employee onboarding, contract management, and adherence to labor regulations.
Compliance Management: Navigating the complexities of Luxembourg's employment laws to ensure full compliance and mitigate risks.
Employment Benefits in Luxembourg
Employees in Luxembourg are entitled to various statutory benefits, reflecting the country's commitment to worker welfare.
Annual Leave
- Paid Vacation: Employees are entitled to a minimum of 26 working days of paid annual leave per year, which can increase based on tenure and collective agreements.
- Public Holidays: Luxembourg observes 11 public holidays annually, during which employees are typically granted time off.
Sick Leave
Employees are entitled to sick leave, with compensation provided through the National Health Fund (CNS). The standard benefit is 100% of the employee’s average daily earnings, commencing from the first day of illness.
Additional Benefits
- Maternity Leave: Female employees are entitled to 20 weeks of maternity leave, with benefits paid through the CNS.
- Paternity Leave: Male employees are granted 10 days of paternity leave, compensated by the employer.
- Healthcare: Employees have access to public healthcare services, with employers contributing to the General Healthcare System (GHS) through payroll deductions.
Work Hours and Breaks
- Standard Workweek: The typical workweek in Luxembourg is 40 hours, with a maximum of 48 hours including overtime.
- Rest Periods: Employees are entitled to a minimum rest period of 11 consecutive hours per 24-hour period and at least 24 consecutive hours of rest per week.
- Overtime Compensation: Overtime work is compensated at a premium rate, typically 140% of the standard hourly wage, with higher rates applicable on Sundays and public holidays.
Salary Tax Table
| Taxable Income Range | Tax Rate | Accumulated Tax |
|---|---|---|
| 0 – 12,438 | 0% | 0 |
| 12,439 – 14,508 | 8% | 165.52 |
| 14,509 – 16,578 | 9% | 348.71 |
| 16,579 – 18,648 | 10% | 548.48 |
| 18,649 – 20,718 | 11% | 765.83 |
| 20,719 – 22,788 | 12% | 1,000.76 |
| 22,789 – 24,939 | 14% | 1,297.64 |
| 24,940 – 27,090 | 16% | 1,621.64 |
| 27,091 – 29,241 | 18% | 1,972.76 |
| 29,242 – 31,392 | 20% | 2,351.00 |
| 31,393 – 33,543 | 22% | 2,756.36 |
| 33,544 – 35,694 | 24% | 3,188.84 |
| 35,695 – 37,845 | 26% | 3,648.44 |
| 37,846 – 39,996 | 28% | 4,135.16 |
| 39,997 – 42,147 | 30% | 4,649.00 |
| 42,148 – 44,298 | 32% | 5,189.96 |
| 44,299 – 46,449 | 34% | 5,758.04 |
| 46,450 – 48,600 | 36% | 6,353.24 |
| 48,601 – 50,751 | 38% | 6,975.56 |
| 50,752 – 110,403 | 39% | 29,426.13 |
| 110,404 – 165,600 | 40% | 51,642.93 |
| 165,601 – 220,788 | 41% | 74,601.36 |
| Over 220,789 | 42% | - |
*All figures based on local currency
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