Remote’s guide to employing in

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

    French, German, and Luxembourgish

  • Population size


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

  • Capital City

    Luxembourg City

  • Currency

    Euro (€, EUR)

  • Languages

    French, German and Luxembourgish

  • Population size


  • Ease of doing business


  • Cost of living index

    88.28 (2021)

  • Payroll frequency


  • VAT - standard rate


  • 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

Looking to employ workers in Luxembourg? Companies hiring in Luxembourg must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Luxembourg on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Luxembourg team. You can also pay contractors now in Luxembourg with Remote.

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

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

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 instalments 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 3 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

Monday, 01 January 20241New Year's Day (Neujahr)
Monday, 01 April 20242Easter Monday (Ostermontag)
Wednesday, 01 May 20243Labour Day (Tag der Arbeit)
Thursday, 09 May 20244Feast of the Ascension of Jesus Christ (Europatag)
Monday, 20 May 20245Pentecost Monday (Pfingstmontag)
Sunday, 23 June 20246National Day (Nationalfeiertag)
Thursday, 15 August 20247Assumption of Mary (Mariä Himmelfahrt)
Friday, 01 November 20248All Saints' Day (Allerheiligen)
Wednesday, 25 December 20249Christmas Day (Weihnachtstag)
Thursday, 26 December 202410Saint Stephen's Day (Stephanstag)

Competitive benefits package in Luxembourg

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Luxembourg are tailored to fulfil the local needs of your 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

for annual plans

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, localised benefits

Contractor Management

Compliantly onboard and pay contractors


per contractor/month

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll


per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you


Manage all of your employees in one place


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