Hire and pay employees in Luxembourg, hassle-free

With Deel, your business can easily hire employees in Luxembourg. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Luxembourg is 14 days with Deel.

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Onboard, pay and manage employees in Luxembourg with Deel

Usually, to hire in Luxembourg, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Now you can hire employees in Luxembourg quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

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Currency
 Euro
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Capital Luxembourg
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Official language French, German & Luxembourgish
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Payroll cycle Monthly

All the necessary benefits for Luxembourg built right in

Deel allows you to provide localized benefits for employees in Luxembourg within minutes. All in one manageable online dashboard in a single HR platform.

  • Pension Fund
  • Social Security
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)
  • Global Life Insurance - Allianz

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Our quickstart guide to hiring in
Luxembourg

Navigate the tabs below to learn everything you need to know about hiring an employee in Luxembourg

Minimum Wage Requirements

The minimum wage varies depending on the employee's skills. In 2025, the minimum wage for unskilled workers is €2,637.79 per month and €3,165.35 per month for skilled workers.

Individual Income Tax

Income Tax in Luxembourg is complex. The individual income tax ranges from 8% to 42%. Income tax is calculated according to progressive rates, marital state, and the employee’s number of children.

Payroll Cost

The employer cost is generally estimated at 11.94% of the employee's salary.

  • Public Pension Fund - 8%
  • Sickness and Maternity Benefits Funds (Caisse de maladie soins) - 0.25%
  • Work Accident Insurance - 0.75%
  • Public Health Insurance (Caisse de maladie soins) - 2.8%
  • Onboarding Medical Check and Employee Professional Fitness Care - 0.14%
  • Telephone and Internet Allowance - EUR 15

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Overtime payment is mandatory for all employees except for Senior Managers. Hours of overtime are paid at 140% of the regular hourly rate. Overtime may be paid as leave-in-lieu of pay (1 hour overtime of overtime equals 1 hour and 30 minutes of time off). 
For additional hours, employees are paid: 

Overtime type

Pay

Standard overtime

140% of the regular hourly rate

Working on public holidays

200% of the regular hourly rate

Working on Sundays 

170% of the regular hourly rate

Working at night (from 10 PM to 6 AM)

115% of the regular hourly rate

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Download the complete guide to hiring in Luxembourg

Hiring in Luxembourg, hassle-free

With Deel, your business can easily hire employees in Luxembourg with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Luxembourg and 150+ countries.

Management fee
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Starting at

$599
/month
Estimated Employer Cost
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12%

of employee salary