- Country Guide
- Luxembourg
Luxembourg
Last Update by Katie, 29 Jul 2024
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Exchange Rate
18 Sep 2024
Cost of Living
Indicative value for a working adult in a city: Luxembourg
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (EUR) |
|---|---|
| McDonalds Set Meal | 11 |
| Monthly Train and Bus Tickets | Free for 2nd class train travel since 2020 |
| 3 Bedrooms Rental (City Center) | 2,687 |
| 3 Bedrooms Rental (Outskirt) | 2,165 |
Current Inflation Rate
2.40%
Wage
Minimum Wages
- All skilled employees over 18 years old 3,085.11 EUR per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (EUR) |
|---|---|
|
Entry-Level
Fresh Graduate
|
3,000 |
|
Mid-Level
5 Years
|
5,000 |
|
Experienced & Managerial Level
10 Years
|
7,000 |
|
Specialized & Senior-Level
15 Years
|
8000+ |
Annual Salary Growth
6%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Accident Insurance |
0.595%- 1.13% Income capped at 12,854.64 EUR/month |
- | All staff |
| Health Insurance |
2.80% - 3.05% Income capped at12,854.64 EUR per month |
2.80% to 3.05% Capped at 12,854.64 EUR per month |
All staff |
| Mutual Health Benefit |
0.01% - 2.98% Income capped at 12,854.64 EUR per month |
- | All staff |
| Occupational Medicine |
0.14% Income capped at 12,854.64 EUR per month |
- | All staff |
| Pension |
8% Contribution capped at 12,854.64 EUR per month |
8% contribution capped at 12,854.64 EUR per month |
All staff |
| Dependency Insurance | - | 1.4% | All staff |
Other Benefit
Other common employment benefits in Luxembourg include:
- Work from home allowance: Roughly 30 EUR per month
- Annual bonus: 2 times monthly salary for staff with over 3 month's service
Income Tax
Residents
-
Tax period: 1st January -31st December
Filing start date: 31st March
Country Level
| Taxable Income | Rate |
|---|---|
| up to 12,438 | 0% |
| 12,439 - 14,508 | 8% |
| 14,509 -16,578 | 9% |
| 16,579-18,648 | 10% |
| 18,649-20,718 | 11% |
| 20,719-22,788 | 12% |
| 22,789-24,939 | 14% |
| 24,940-27,090 | 16% |
| 24,940-27,090 | 16% |
| 27,901-29,241 | 18% |
| 29,242-31,392 | 20% |
| 31,393-33,543 | 22% |
| 33,544-35,694 | 24% |
| 35,695-37,845 | 26% |
| 37,846-39,996 | 28% |
| 39,997-42,147 | 30% |
| 42,148-44,298 | 32% |
| 44,299-46,449 | 34% |
| 46,450-48,600 | 36% |
| 48,601-50,751 | 38% |
| 50,752 -110,403 | 39% |
| 110,404-165,600 | 40% |
| 165,601-220,788 | 41% |
| €220,788+ | 42% |
Non-residents
- Only taxed on income from sources in Luxembourg
Working Hours
Statutory
40 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Monday-Friday
Overtime
Over 40 hours per week is considered overtime.
- Maximum working time cannot exceed 10 hours per day, or 48 hours per week
- Part time work: Weekly work schedule over a 4-week period, cannot exceed the weekly hours stated in the contract
- Daily and weekly working hours cannot exceed 20%
Employment Contract
Fixed-Term
Used for seasonal work, to replace absent staff and for short-term projects or assignments
Contract Format
Written, in Luxembourgish, French or German, bilingual contracts are accepted and issued no later than the first day of employment
Payroll Currency
EUR
Probation
Minimum 2 weeks
Contract Period
Up to 24 months including renewals
Termination
-
Termination during first 2 weeks:
- for misconduct only -
Notice during and after probation:
- 3 weeks' service- 3 days
- 4 weeks' service- 4 days
- 2 months' service- 15 days
- 3 months' service- 15 days
- 4 months' service- 16 days
- 5 months' service- 20 days
- 6 months' service- 24 days
- 7 months' service- 28 days
- 8-12 months' service- 1 month -
Severance:
- Salary staff would have received until the end of the contract
Public Holiday
11 days
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 01 Apr | Easter |
| 07 Apr | Good Friday |
| 10 Apr | Easter Monday |
| 01 May | Labor Day |
| 09 May | Feast of the Ascension of Jesus Christ |
| 20 May | Whit Monday |
| 23 Jun | National Day |
| 15 Aug | Assumption of Mary |
| 01 Nov | All Saints' Day |
| 25 Dec | Christmas Day |
| 26 Dec | Saint Stephen's Day |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 26 working days | All staff with 3 months' service |
| Maternity Leave |
20 weeks 8 weeks-Antenatal 12 weeks -postnatal |
All expectant mothers with 6 months social security registration |
| Paternity Leave | 10 working days per child | Expectant fathers |
| Adoption Leave | Up to 12 weeks | All staff must be registered with the mandatory sickness and maternity insurance |
| Parental Leave | 4 - 6 months | All staff registered with social security for 12 months and work 10 hours per week |
| Carer's Leave | 5 working days per year | All staff |
| Force Majeure Leave | 1 business day | All staff |
| Personal Leave | 1-3 business days per event | All staff or apprentices |
| Sick Leave | 26 weeks | All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Luxembourg
- https://guichet.public.lu/en/citoyens/outils/parametres-sociaux.html
- https://www.cfl.lu/fr-fr/ticket/national#nav-main-1
- https://guichet.public.lu/fr/citoyens/travail/conditions-travail/types-contrat-travail/contrat-duree-indeterminee.html
- https://guichet.public.lu/en/citoyens/travail/conditions-travail/types-contrat-travail/contrat-duree-determinee.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/conges/annuel/conge-annuel.html
- https://ccss.public.lu/en/employeurs/secteur-prive/declarer-incapacite-travail.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/fin-relation-travail/licenciement-resiliation/periode-essai.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/fin-relation-travail/licenciement-resiliation/licencier-preavis.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/conges/situation-perso/conge-accueil-adoption.html
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Contact UsCountry Guide - Luxembourg
Last updated: 29 Jul 2024
Exchange Rate
Currency (EUR)
- 1 CNY = 0.185 EUR
- 1 USD = 1.32 EUR
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Luxembourg
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (EUR) |
|---|---|
| McDonalds Set Meal | 11 |
| Monthly Train and Bus Tickets | Free for 2nd class train travel since 2020 |
| 3 Bedrooms Rental (City Center) | 2,687 |
| 3 Bedrooms Rental (Outskirt) | 2,165 |
Current Inflation Rate
2.40%
Wage
Minimum Wages
- All skilled employees over 18 years old 3,085.11 EUR per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (EUR) |
|---|---|
|
Entry-Level
Fresh Graduate
|
3,000 |
|
Mid-Level
5 Years
|
5,000 |
|
Experienced & Managerial Level
10 Years
|
7,000 |
|
Specialized & Senior-Level
15 Years
|
8000+ |
Annual Salary Growth
6%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Accident Insurance |
0.595%- 1.13% Income capped at 12,854.64 EUR/month |
- | All staff |
| Health Insurance |
2.80% - 3.05% Income capped at12,854.64 EUR per month |
2.80% to 3.05% Capped at 12,854.64 EUR per month |
All staff |
| Mutual Health Benefit |
0.01% - 2.98% Income capped at 12,854.64 EUR per month |
- | All staff |
| Occupational Medicine |
0.14% Income capped at 12,854.64 EUR per month |
- | All staff |
| Pension |
8% Contribution capped at 12,854.64 EUR per month |
8% contribution capped at 12,854.64 EUR per month |
All staff |
| Dependency Insurance | - | 1.4% | All staff |
Other Benefit
Other common employment benefits in Luxembourg include:
- Work from home allowance: Roughly 30 EUR per month
- Annual bonus: 2 times monthly salary for staff with over 3 month's service
Income Tax
Residents
-
Tax period: 1st January -31st December
Filing start date: 31st March
Country Level
| Taxable Income | Rate |
|---|---|
| up to 12,438 | 0% |
| 12,439 - 14,508 | 8% |
| 14,509 -16,578 | 9% |
| 16,579-18,648 | 10% |
| 18,649-20,718 | 11% |
| 20,719-22,788 | 12% |
| 22,789-24,939 | 14% |
| 24,940-27,090 | 16% |
| 24,940-27,090 | 16% |
| 27,901-29,241 | 18% |
| 29,242-31,392 | 20% |
| 31,393-33,543 | 22% |
| 33,544-35,694 | 24% |
| 35,695-37,845 | 26% |
| 37,846-39,996 | 28% |
| 39,997-42,147 | 30% |
| 42,148-44,298 | 32% |
| 44,299-46,449 | 34% |
| 46,450-48,600 | 36% |
| 48,601-50,751 | 38% |
| 50,752 -110,403 | 39% |
| 110,404-165,600 | 40% |
| 165,601-220,788 | 41% |
| €220,788+ | 42% |
Non-residents
- Only taxed on income from sources in Luxembourg
Working Hours
Statutory
40 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Monday-Friday
Overtime
Over 40 hours per week is considered overtime.
- Maximum working time cannot exceed 10 hours per day, or 48 hours per week
- Part time work: Weekly work schedule over a 4-week period, cannot exceed the weekly hours stated in the contract
- Daily and weekly working hours cannot exceed 20%
Employment Contract
Permanent
Can be full or part-time.
Probation
Minimum 2 weeks
-
- Staff with no vocational skills certificate: 3 months
- Staff with a vocational skills certificate- 6 months
- Staff wit a gross monthly salary of over ; 4,938.75 EUR- 12 months maximum
Termination
-
Termination during first 2 weeks:
- for misconduct only -
Notice during and after probation:
- 3 weeks' service- 3 days
- 4 weeks' service- 4 days
- 2 months' service- 15 days
- 3 months' service- 15 days
- 4 months' service- 16 days
- 5 months' service- 20 days
- 6 months' service- 24 days
- 7 months' service- 28 days
- 8-12 months' service- 1 month -
Severance:
- For employees with over 5 years' service only
Fixed-Term
Used for seasonal work, to replace absent staff and for short-term projects or assignments
Probation
Minimum 2 weeks
Termination
-
Termination during first 2 weeks:
- for misconduct only -
Notice during and after probation:
- 3 weeks' service- 3 days
- 4 weeks' service- 4 days
- 2 months' service- 15 days
- 3 months' service- 15 days
- 4 months' service- 16 days
- 5 months' service- 20 days
- 6 months' service- 24 days
- 7 months' service- 28 days
- 8-12 months' service- 1 month -
Severance:
- Salary staff would have received until the end of the contract
Public Holiday
11 days
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 26 working days | All staff with 3 months' service |
| Maternity Leave |
20 weeks 8 weeks-Antenatal 12 weeks -postnatal |
All expectant mothers with 6 months social security registration |
| Paternity Leave | 10 working days per child | Expectant fathers |
| Adoption Leave | Up to 12 weeks | All staff must be registered with the mandatory sickness and maternity insurance |
| Parental Leave | 4 - 6 months | All staff registered with social security for 12 months and work 10 hours per week |
| Carer's Leave | 5 working days per year | All staff |
| Force Majeure Leave | 1 business day | All staff |
| Personal Leave | 1-3 business days per event | All staff or apprentices |
| Sick Leave | 26 weeks | All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Luxembourg
- https://guichet.public.lu/en/citoyens/outils/parametres-sociaux.html
- https://www.cfl.lu/fr-fr/ticket/national#nav-main-1
- https://guichet.public.lu/fr/citoyens/travail/conditions-travail/types-contrat-travail/contrat-duree-indeterminee.html
- https://guichet.public.lu/en/citoyens/travail/conditions-travail/types-contrat-travail/contrat-duree-determinee.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/conges/annuel/conge-annuel.html
- https://ccss.public.lu/en/employeurs/secteur-prive/declarer-incapacite-travail.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/fin-relation-travail/licenciement-resiliation/periode-essai.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/fin-relation-travail/licenciement-resiliation/licencier-preavis.html
- https://guichet.public.lu/en/entreprises/ressources-humaines/conges/situation-perso/conge-accueil-adoption.html
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000