Don’t risk non-compliance with local employment, social insurance, and tax regulations.
Luxembourg’s financial hub status and skilled talent are ideal, but its labor laws require attention. Omnipresent, as your Employer of Record (EOR), ensures compliance with CCSS regulations, no entity needed.
Our EOR services cover payroll, benefits like 26 days of vacation, and taxes, freeing you to oversee teams in Luxembourg City or beyond. We deliver a tech-driven solution for this competitive market.
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).
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.
*The above costs are for our monthly management fee. The total cost of employment in a country will be determined by social contributions required by the local government and costs of benefits. In most countries where we operate, we offer employee benefit plans (such as healthcare) that are billed to the customer. Because Omnipresent is able to benefit from large group plans, we are able to offer competitive rates on more comprehensive coverage for your employees. Pricing is reflective of countries where we operate our own entities, which covers 95% of our customer employees' hiring markets.
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