Luxembourg
Min. wage
(x12 payments)
€2,771.33 /mo
About the minimum wage
Employer tax
~12.6-15%
Understand employer tax
Annual leave
26 days
Learn about annual leave
Notice period
2-6 months (by tenure)
Termination and notice info
Updated
Sep 2026
The standard and legally preferred form of employment in Luxembourg is the open-ended contract (CDI), which must be in writing. Can only be terminated per statutory procedures and gives access to statutory severance pay after 5 years of seniority.
A CDD may only be used for a temporary task and must state a precise end date. Can be renewed twice within the 24-month cap. If limits are breached or work continues past the term without a new CDD, the relationship converts to a CDI by operation of law.
Default legal working week is 40 hours (8 hours/day), though many CBAs set 38-40 hours. Overtime compensated as paid time off (1.5 hours per overtime hour) or a cash premium of at least 140% of normal wage; night/Sunday/holiday work carry higher statutory premiums (public-holiday work typically 200%).
The trial period is optional but common, must be specified in writing. Minimum duration 2 weeks; maximum 3 months (6 months for CATP/DAP-qualified, up to 12 months for salary at/above indexed threshold ~EUR 5,062). During trial, either party may terminate with notice of 4 calendar days per month of agreed trial (minimum 15 days, maximum 1 month).
Luxembourg's Labour Code does not require a 13th (or 14th) month salary. Becomes contractual only if provided in individual contract, CBA, or established company custom. Common in banking, insurance, and financial services via CBA.
Certain professions require diplomas, professional licensing, or a business establishment authorization from the Ministry of the Economy. Non-EU/EEA/Swiss nationals generally require a combined residence-and-work authorization before starting work; an EU Blue Card route exists for highly qualified workers. RemoFirst should confirm profession-specific licensing on a case-by-case basis.
Approximate total employer contribution burden of 12.6%-15% of gross salary: Pension 8.50%; Health insurance (CNS) 3.05%; Occupational health service 0.14%; Work-accident insurance base rate 0.65% x company-specific bonus-malus factor (0.85x-1.5x); employer mutualite sick-pay reimbursement contribution by absenteeism class (0.23%-2.66%). The 13.3% figure assumes a mid-range Class 2 mutualite rate. Contributions calculated on gross salary between a floor of EUR 2,771.33 and ceiling of EUR 13,856.63.
Total employee contribution approximately 12.95% of gross salary: Pension 8.50%; Health insurance (CNS) 3.05%; Dependency/long-term care insurance 1.40% (calculated after an abatement equal to one-quarter of the social minimum wage). No separate employee unemployment-insurance contribution; unemployment protection is funded through general taxation.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Luxembourg social security contributions are collected by the CCSS on gross salary between a monthly floor of EUR 2,771.33 and ceiling of EUR 13,856.63 (June 2026 indexation).
Work-related accidents and occupational diseases are covered by the mandatory Accident Insurance scheme (AAA), funded entirely by employer contributions.
Statutory severance indemnity applies to CDI employees dismissed by the employer (other than gross misconduct) with at least 5 years of seniority.
Employers with fewer than 20 employees may extend notice in lieu of severance.
A 13th-month salary is not required by Luxembourg law. Becomes owed only if provided for in a contract, CBA, or established company custom. Common in banking, insurance, and financial services.
P.S. our team speaks multiple languages and we'd love to chat in your preferred language if requested.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.
