French, German & Luxembourgish
Hire employees in Luxembourg. No entity needed.
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.
Luxembourg also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Luxembourg quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
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.
- Pension Fund
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
Individual Income Tax
Overtime Pay & Maximum Hours
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
There is no at-will termination in Luxembourg for employers and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- probation period
- objective grounds
- disciplinary dismissal
- performance due to unsuitability for the job
- By expiration of the contract
The minimum notice period is 30 days and will be increased according to the length of the employment and the type of termination.
Notice upon termination by the Employer:
- 60 days if the length of service is less than 5 years
- 120 days if the length of service is more than 5 years but less than 10 years
- 180 days if the length of service is more than 10 years
Notice upon resignation by the Employee:
- 30 days if the length of service is less than 5 years
- 60 days if the length of service is more than 5 years but less than 10 years
- 90 days if the length of service is more than 10 years
Severance for Employees
In Luxembourg, all employees who are terminated without appropriate termination notice or have been employed with the company longer than 5 years are entitled to severance pay. Severance pay is 30 days of salary per year of service up to 25 months base compensation.
- From years 5-10 of seniority, 4 months of salary.
- From years 10- 15 of seniority, 2 months of salary.
- From years 15-20 of seniority, 3 months of salary.
- From years 20-25 of seniority, 6 months of salary.
- From years 25-30 of seniority, 9 months of salary.
- From years 30+ of seniority, 12 months of salary.
Paid Time Off
Luxembourg celebrates 11 national holidays
- National public holidays include:
- New Year's Day
- Easter Monday
- Labour Day
- Europe Day
- Ascension Day
- Whit Monday
- National Day
- Assumption Day
- All Saints' Day
- Christmas Day
- 2nd Day of Christmas
Due to lengthy compliance steps, the onboarding timeline can vary from 2 weeks to 1 month. Documents must be completed 1 day before the start date.
Employment Contract Details
Contracts can be in English. They must be in writing and signed by both parties.
A contract must include:
- start date
- length of the employment
- job description
- termination conditions
- monthly salary
- address of work
- working hours
Hiring 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.
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in Luxembourg?View our Employee Cost Calculator