Country Guide

Luxembourg

Hey, Moien! Learn everything and more about your Luxembourgian workers.

Remundo is the only EOR provider that owns the entire network of entities – in every country.

Quick Reach Out

Hiring Guide

Remundo takes care of all your compliance with auto-generated multi-lingual contracts at the touch of a button.

Tax Compliance covered

Employee Taxes in Luxembourg are:

Employer Costs in Luxembourg are:

We calculate the rates of each for you and add it to your invoice automatically with our platform, so you’re always paying the right amounts at the right time.

Best Benefits for Luxembourgers

Both the Luxembourg Labour Law and the Luxembourg Social Law regulate benefits and compensation in the country of Luxembourg. Luxembourg law mandates that all full-time workers get a variety of insurance protections, including retirement and disability coverage, medical coverage for themselves and their families, and coverage for long-term care needs.

Manage your workers and time zones

In Luxembourg, a full-time job is considered to be 8 hours per day, 5 days a week. The maximum amount of overtime allowed by law is 8 hours per week, or 2 hours per day. Workers can’t put in more than 10 hours a day, or 48 hours a week.

Hours of labor must be defined in advance, either in the employment contract or in the company’s rules and regulations.

There is only one time zone in the whole country. CET (or UTC+1) is the standard time.

Payroll Managed

Our partner has a registered entity that covers payroll in Luxembourg for all your workers. They will get their payslips on a monthly basis. And all the proper payments will be made to the appropriate financial and legal institutions in accordance with regulatory guidelines.

Leave compliance automated on the platform

You can see your employee’s statutory vacation leave entitlement (together with the amount you provided) after you’ve created an account and onboarded them.

Luxembourg law guarantees all salary earners 11 paid leave each year. If a paid employee’s regular day off coincides with a public holiday, the company must provide the employee with an extra day off.

Nationwide Public Holidays:

New Year's Day (Nouvel An): Jan 1st
Easter Monday (Lundi de Pâques): Around Apr
Labour Day (1er mai): May 1st
Europe Day (Journée de l'Europe): May 09th
Ascension Day (Ascension): Around May
Whit Monday (Lundi de Pentecôte): Around May
National Holiday (Fête nationale): Jun 23rd
Assumption (Assomption): Aug 15th
All Saints' Day (Toussaint): Nov 1st
Christmas Day (Noël): Dec 25th
Boxing Day (Lendemain de Noël): Dec 26th

Other Public Holidays*:

Terminating an Luxembourger employee

If an employee isn’t performing up to par or a project they were working on comes to a close, terminating their employment needn’t be a difficult process. The duration of employment is also a factor in Luxembourg’s mandatory notice period:

Contact us if you need to terminate an employee in Luxembourg and are unsure of your legal or financial responsibilities in this respect. One of our agents will be available to discuss your choices and answer any questions you may have.

CURRENCY

EURO €

CAPITAL

Luxembourg, also called Letzeburg

OFFICIAL LANGUAGE

Luxembourgish, French and German

PAYROLL FREQUENCY

Monthly

TIMEZONE

GMT+2 (CET)

HAPPINESS INDEX

7.238, ranked 10th

Uniqueness of Luxembourgish Workers

The Luxembourgers value promptness and dependability in one’s own acts. Workplace time pressure is common due to the high volume of work. There is a rigid adherence to due dates. Anything less may be swiftly labeled as unreliable, and that can be a problem in the workplace.

Worker’s Personal Obligations and Duties

There is a distinct delineation between each worker’s duties and responsibilities. As a result, employees under them take care to avoid making unwelcome interventions into their coworkers’ or managers’ areas of responsibility.

Communication Norms and Practices

It is customary for a worker to always keep their colleagues in the loop. Sending too many emails is preferable than sending too few. In most cases, workers use established routes of communication to share information. There may also be informal information transfer depending on the relative importance of the connection level in the collaboration.

Team Players

Luxembourgers are team players who can effectively collaborate across organizational boundaries. In most cases, workers speak to one another in a friendly, albeit often forthright, manner. Most teams have well-defined roles, with workers taking more ownership of their individual responsibilities than of the team as a whole.

Approach to Time and Priorities

Luxembourg has a long-standing culture of valuing work-life balance by providing its citizens with a short work week and ample paid leave. In Luxembourg, people place a high value on punctuality and generally expect others to do the same. Failing to meet a deadline sends a message of incompetence and undermines trust.

Luxembourg Economics

Our statistics are designed to give a rounded overview of Luxembourg’s economic growth,
buying power, investment potential, and state of personal wellness of the people