Luxembourg

Last Update by Katie, 30 May 2024

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Exchange Rate

13 Jun 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- 3,009.88 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

Must have a specified reason to be fixed-term and cannot last longer than 24 months including renewals.

Probation

Minimum 2 weeks

Termination

Not possible during first 2 weeks unless for misconduct

  • 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:
    - Employers pay the salary staff would have received for the period 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
Maternity Leave 20 weeks
8 weeks-Antenatal
12 weeks -postnatal
Pregnant women registered for 6 months with mandatory sickness and insurance
Paternity Leave Up to 10 working days
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
Sick Leave 26 weeks All staff

Reference

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