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Country hiring guide

Hiring in Luxembourg 🇱🇺

Small, highly multilingual finance-focused workforce with many cross-border commuters. Employer on-costs run ~13-15% on top of gross salary. Here is what to know before your first Luxembourg hire.

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OverviewFacts & statsEmployer costsLeaveTermination
Capital cityLuxembourg City
CurrencyEuro (EUR)
LanguagesLuxembourgish, French, German (official); English widely used
Population~0.7 million
Payroll frequencyMonthly; 13th month customary (CBA/contract), not statutory
VAT standard rate17% (TVA)
Employer burden*~13-15% of gross
TGTC flat EOR fee$499/mo · Tier B
Overview

Employing in Luxembourg

Employment in Luxembourg runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • Unskilled EUR 2,771.33/month (from Jun 2026)*
  • Skilled EUR 3,325.59/month (120%)

Payroll cycle & extra pay

  • Monthly payment
  • 13th month common but not statutory

Public holidays

  • 11 public holidays per year

Onboarding & probation

  • Written contract required
  • Probation 2 weeks to 6 months (12 for high earners)
Employer costs

What you pay on top of salary

Employer on-costs in Luxembourg run ~13-15% of gross salary. Employer social contributions run ~12.7%-14.8% depending on mutual-insurance class.

Employer contribution*Rate
Pension insurance (employer)8.5%*
Health/sickness insurance (employer)~3.05%*
Accident insurance~0.65%*
Occupational health~0.14%*
Mutual insurance (employer)0.46%-2.88%*

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Luxembourg

Annual leave

  • 26 working days minimum

Maternity & parental leave

  • Maternity 20 weeks (8 pre, 12 post)
  • Paternity 10 days; parental 4-6 months per parent

Sick leave

  • Employer pays to end of 77th day (mutualite reimburses)
  • Health fund (CNS) pays thereafter

Other leave

  • Parental and family/care leave available
Employment termination

Ending employment in Luxembourg

Notice

  • 2/4/6 months by tenure (<5/5-10/10+ yrs)

Severance

  • Statutory from 5+ yrs (1-12 months by tenure)

Probation

  • 2 weeks to 6 months (up to 12)

Contractor risk

  • Misclassification can trigger requalification as employee

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Luxembourg without setting up an entity

TGTC employs your hire in Luxembourg on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.

Get a Luxembourg quote