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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
In Luxembourg, salaries are influenced by the consumer price index. If the index changes by 2.5% in the previous semester, salaries are typically adjusted by the same percentage.
Luxembourg offers high wages thanks to its skilled, multilingual workforce fluent in French, German, and Luxembourgish.
Luxembourg, known for its wealth and stable economy, holds the top spot for the world's highest GDP per capita rate.
The financial sector dominates Luxembourg's economy, contributing 36% to the total GDP, followed by the industry at 13.3%.
In Luxembourg, employment contracts are typically indefinite, but for fixed-term contracts, strict regulations apply under the Labor Code. Both types necessitate written form and mutual understanding, with no language requirements. Contracts should encompass essential employment details, including:
Employment contracts in Luxembourg must outline probation periods, lasting 2 weeks to 6 months, with varying limits based on skills and salary. Unskilled workers have a maximum trial period of 3 months, while those earning over 5 times the minimum wage can trial for up to 12 months.
The regular working hours are 40 hours per week in Luxembourg, employees can work 8 hours a day.
Overtime in accordance with employment agreements is capped at 2 hours per day and 8 hours per week, compensated at 150% of the regular salary. Sunday work is restricted unless otherwise specified, with specific compensation arrangements.
The minimum wage in Luxembourg is 18.8 EUR an hour.
In Luxembourg, it's common to receive a 13th salary. This payment is equal to one month's salary usually given at the end of the year. Employers often provide an additional half month's salary as well.
Luxembourg's income tax system is intricate. Individual income tax rates range from 8% to 42%, calculated based on progressive rates, marital status, and the number of children an employee has.
Employers, employees, and the State contribute 8% each to the general pension insurance scheme. The fund covers old-age pensions, disability pensions, and survivors' pensions. The retirement age is 65.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Luxembourg tailored to your needs.
Termination procedures vary based on employment and collective agreements, contract type, and reasons for termination. Employers with over 150 employees must conduct a hearing before dismissal, and those with at least 15 employees must inform the economic committee about dismissals. Valid reasons for termination include:
If a collective agreement specifies notice periods that differ from statutory ones, both employer and employee must follow the collective agreement's notice periods. The notice duration depends on the length of service.
In Luxembourg, employees terminated without proper notice or with over 5 years of service are entitled to severance pay. It equals 30 days of salary per year, capped at 25 months of base compensation.
Luxembourg has 11 mandatory national holidays in a year.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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