Employ and run payroll with ease in

Luxembourg
luxembourg flag

Make employment in Luxembourg easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Luxembourg, all in one easy-to-use platform.

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
  • Capital City

    Luxembourg City

  • Currency

    Euro (€, EUR)

  • Languages

    Luxembourgish, German, and French

  • Population size

    626,108

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
A castle on a hill surrounded by trees with vianden castle in the background.

Facts & Stats

Luxembourg
  • Capital City

    Luxembourg City

  • Currency

    Euro (€, EUR)

  • Languages

    Luxembourgish, German, and French

  • Population size

    626,108

  • Ease of doing business

    Easy

  • Cost of living index

    88.28 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    17%

  • GDP - real growth rate

    2.3 (2019)

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.

Grow your team in Luxembourg with Remote

Want to hire employees 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 at all times. 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. 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.

A row of colorful buildings on a city street.

Employing in Luxembourg

Labor relations in Luxembourg are regulated by the Labor 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

The government-mandated minimum wage in Luxembourg is fixed to correspond with the general price level & gets reviewed every two years. Following the latest review earlier this year, the Luxembourgish minimum wage has been increased by 2.8% and is currently set at:

  • € 2,201.93 per month for non-graduate workers

  • € 2,642.32 per month for graduate workers with appropriate certifications

Payroll Cycle

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

Onboarding Time

We can help you get a new employee started in Luxembourg fast. The minimum onboarding time we need is only 4 working days.

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.

10 Public holidays

Jan
Monday, January 1, 20241New Year's Day (Neujahr)
Apr
Monday, April 1, 20242Easter Monday (Ostermontag)
May
Wednesday, May 1, 20243Labor Day (Tag der Arbeit)
Thursday, May 9, 20244Feast of the Ascension of Jesus Christ (Europatag)
Monday, May 20, 20245Pentecost Monday (Pfingstmontag)
Jun
Sunday, June 23, 20246National Day (Nationalfeiertag)
Aug
Thursday, August 15, 20247Assumption of Mary (Mariä Himmelfahrt)
Nov
Friday, November 1, 20248All Saints' Day (Allerheiligen)
Dec
Wednesday, December 25, 20249Christmas Day (Weihnachtstag)
Thursday, December 26, 202410Saint Stephen's Day (Stephanstag)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR Luxembourg: Take the Tour

Seamlessly manage your workforce, from first hire to final paycheck

Competitive benefits package in Luxembourg

At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.

Our benefits packages in Luxembourg are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Fair Pricing in Luxembourg

Employer of Record

Hire and pay your global team

Starting at $599/month

paid annually, or $699/month paid monthly

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries and territories

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Payroll

Consolidate your multi-country payroll

$29

per employee/month

Top features

  • Support: Personalized assistance with a dedicated team and specialists

  • Accuracy: Test runs and parallel pay runs before implementation

  • Compliance: Adhere to local labor laws in every country

  • Timeliness: Accurate and on-time payroll with labor authority reporting handled

  • Experience: Seamless payroll with easy access to payslips and expenses

HR Management

Manage all of your employees in one place

Free

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app