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Employing in Luxembourg

Labour relations in Luxembourg are regulated by the Labour Code of 2006, and a number of European and international statutes that Luxembourg is signatory to.

Luxembourg’s workforce of over 487,000 enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Luxembourg.

Minimum Wage

Effective May 1st, 2025, the minimum social wage for unskilled workers in Luxembourg increased by 2.5%, rising from €2,637.77 to €2,703.74 monthly.

For qualified workers, the minimum wage increased from €3,165.35 to €3,244.48 monthly.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

Onboarding

We can help you get a new employee started in Luxembourg fast.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

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Competitive benefits package in Luxembourg

health_insurance
Health Insurance
dental_insurance
Dental Insurance
vision_insurance
Vision Insurance
mental_health_support
Mental health support
pension_or_401(k)
Pension or 401(K)
life_and_disability_insurance
Life and Disability Insurance

Facts & Stats

Since its founding in 963 AD, Luxembourg (Luxembourgish: Grossherzogtum Lëtzebuerg​) has enjoyed an exotic history that’d rival anything out of a history book: it’s changed ownership at least four times, produced four Holy Roman Emperors, and ruled over much of what is now Germany.

In modern times, Luxembourg boasts a developed economy with the world largest GDP per capita ranking, the 23rd highest human development index in the world, significantly low levels of inequality, and widespread civil and press freedoms.

Capital City
Luxembourg City
Currency
Euro
Languages
Luxembourgish, German, French
Population size
626,108
Ease of doing business
Easy
Payroll frequency
Monthly
VAT - standard rate
17%

Grow your team in Luxembourg with Remote

Want to employ workers in Luxembourg? Companies hiring in Luxembourg are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Luxembourg and keep you compliant. Remote can hire, onboard, and pay your Luxembourg team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Luxembourg. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

Luxembourg, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Luxembourg may lead to fines and penalties for the offending company.

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Transparent Pricing in Luxembourg

Payroll

27

per employee/month
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  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalised support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

27

per contractor/month
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  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localised contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

645

per employee/month
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  • Hire without opening a local entity in 90+ countries
  • Onboarding with a dedicated specialist
  • Local payroll paid on time, every time
  • Compliance protections built-in
  • Competitive, flexible and localised benefits
  • Dedicated in-house experts for local support
  • Includes HR Essentials as standard